Queensland launches building industry inquiry to address housing shortfall
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Photo by Curtis Adams
The Queensland government has established an inquiry into the state’s building and construction industry as it faces a projected shortfall of 96,000 homes under the National Housing Accord targets.
Terms of Reference for the inquiry have been released, charging the Queensland Productivity Commission with investigating conditions in both residential and non-residential construction sectors.
The commission will examine factors affecting industry productivity as Queensland struggles to meet its share of the national target to build 1.2 million new homes by 2029.
According to the Property Council of Australia’s “Smarter Incentives, More Homes” report, Queensland is currently on track to build only 151,000 of its targeted 247,000 homes.
Queensland Minister for Housing and Public Works Sam O’Connor said the inquiry would address regulatory barriers slowing housing projects.
“By launching this inquiry, we’re getting on with the job of making it easier to build in Queensland because the current system isn’t working for builders and it’s certainly not working for the tens of thousands of Queenslanders waiting for a place to call home,” Mr O’Connor said.
The inquiry follows a Productivity Commission report which revealed Australia’s residential construction sector delivers approximately half the number of homes per hour worked compared to 1995.
As part of the process, Angela Moody has been appointed as productivity commissioner, while Dr Karen Hooper, current head of the office of productivity and red tape reduction in Queensland Treasury, has been appointed to the board as a commissioner.
The commission is required to deliver its findings to the government within six months following public consultation with industry bodies, unions, businesses and regulatory authorities.
This is the latest initiative by the Crisafulli government to address Queensland’s housing crisis, following its decision to abolish stamp duty for first-home buyers purchasing new builds—a key promise from David Crisafulli’s 2024 election campaign.
Property Council of Australia’s Queensland executive director Jess Caire welcomed the inquiry as a step toward improving construction productivity.
“This inquiry provides a welcome opportunity for industry to work collaboratively to make generational change, we know we need to attract more trades, and this could be a catalyst in boosting participation in the construction sector,” Ms Caire said.
“Queensland is already facing a significant housing deficit, and the longer it takes to build a house the more it costs and the wider this deficit grows.”
The national housing shortage has become increasingly urgent, with Australia facing a projected deficit of 462,000 homes against the Housing Accord goal.