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Housing crisis worsens as industry body calls for urgent political action

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Photo by Curtis Adams

Australia’s housing supply has fallen significantly short of demand, with only 180,000 new homes completed in the past year against a required 240,000 annual target, according to the Housing Industry Association.

The peak industry body urged all political parties to address the nation’s housing affordability crisis ahead of the 2025 federal election.

HIA Managing Director Jocelyn Martin said the shortfall was creating widespread problems across the housing sector.

“We are simply not building enough homes to keep up with demand. Australia needs to build around 240,000 new homes per year, every year, to meet demand and put downward pressure on affordability but in the last 12 months under 180,000 were completed,” she said.

The completion rate indicated the government would miss its target of building 1.2 million homes over five years.

Tax policies emerged as a key factor in rising housing costs, with levies accounting for up to 50 per cent of new home prices in major cities.

The HIA identified stamp duty calculations on GST as an inefficient tax measure that was inflating housing prices unnecessarily.

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Land availability also presented a major obstacle to new housing developments.

Martin said many housing projects remained stalled due to infrastructure limitations.

“We have hundreds of housing sites ready to go but held back due to inadequate infrastructure. The Federal Government must invest in the roads, water, and services needed to deliver these projects,” she said.

The association called for political parties to move beyond partisan approaches to housing policy.

“In the coming weeks and months, we will be asking both sides to stop politicising housing and consider the pressing challenges confronting Australians and the building industry,” Martin said.

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