REIA welcomes housing investment in Budget but calls for deeper structural reform
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Photo by RDNE Stock project
The Real Estate Institute of Australia (REIA) has endorsed the housing measures outlined in the Federal Government’s 2025–26 Budget, while warning that further structural reforms are needed to deliver sustainable improvements in affordability and supply.
REIA president Leanne Pilkington said the government’s $33 billion commitment to housing, including a target to build 1.2 million new homes over five years, was a positive step, but longstanding issues such as labour shortages and regulatory constraints remained barriers to delivery.
“Although these economic indicators suggest stability, the path to sustained improvements in affordability requires ongoing government intervention and collaboration with the industry,” Ms Pilkington said.
Dwelling investment is projected to grow by 1.5 per cent in 2024–25, with stronger growth expected in the years ahead. The Budget also forecasts inflation to fall to 2.5 per cent and GDP to rise to 2.25 per cent by 2025–26.
Ms Pilkington said key initiatives supported by the REIA include the $800 million expansion of the Help to Buy scheme, increased funding for social and affordable housing, and support for prefabricated and modular construction.
Renters will benefit from the continuation of a 45 per cent increase in the maximum Commonwealth Rent Assistance and the new “A Better Deal for Renters” policy.
While welcoming these short-term relief measures, Ms Pilkington said long-term rental supply challenges would require more systemic reform.
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“The Budget also includes provisions to boost the construction workforce, such as doubling incentive payments for housing apprentices and expanding Free TAFE enrolments,” she said.
“These initiatives are designed to address labour shortages and strengthen industry capacity.”
Ms Pilkington urged the government to go further by accelerating planning reform, reducing regulatory red tape and incentivising private sector investment in build-to-rent housing.
“While REIA supports these efforts, we continue to call for action to streamline planning approvals and support greater private sector participation to ensure long-term housing sustainability,” she said.