One million reasons for confidence

BUILDING industry bodies have welcomed a federal government initiative to facilitate construction of one million new homes within five years from 2024.

Last week’s federal budget included a $350 million investment into a National Housing Accord, which will align all levels of government, investors and the construction sector to tackle housing supply and affordability constraints.

The budget measure intends to streamline planning from state and local governments, provide financing options to encourage investment from bodies such as superannuation funds, and support skills training to boost the construction workforce.

It also includes a boosted commitment of 20,000 affordable dwellings by the end of 2028, up from the previous promise of 10,000.

In a joint statement, Treasurer Jim Chalmers and Housing Minister Julie Collins said the government’s ambition was to build “one million new, well-located homes from 2024”.

“The Accord recognises most of this supply needs to come from the market with government playing a key role in enabling and kick-starting investment.

“We want more Australians to know the security of decent housing and more Australians realising the aspiration of home ownership.

“It’s more important than ever that we work together to ensure there is an adequate supply of affordable housing where it is needed – close to jobs, transport and other services.”

Industry modelling from earlier this year indicated that the private sector was unlikely to meet its benchmark of 200,000 new homes a year until 2026 amid current market pressures.

Master Builders Australia CEO Denita Wawn said she was excited with the “timely” support.

“Master Builders has long advocated for the obstacles faced by the building and construction industry that prevent many of the homes we need from getting built to be addressed.

“We thank the federal government for taking the first step in bringing all parties together to start tackling this crisis and look forward to working with all levels of government to ensure this is achieved in a consistent way.”

Housing Industry Association managing director Graham Wolfe also said the initiatives were a step in the right direction.

“Labor’s first budget shows leadership to tackle Australia’s housing supply and affordability challenges for all Australians.

“Importantly, this target provides a necessary indicator to governments at all levels, that priority action is needed should housing supply fall below 200,000 new homes each year.”