A million reasons to trust
BUILDING industry bodies have welcomed a federal government initiative to facilitate the construction of one million new homes within five years from 2024.
Last week’s federal budget included a $350 million investment in a National Housing Accord, which will align all levels of government, investors and the construction industry to tackle housing supply constraints. and affordability.
The budget measure aims to streamline state and local planning, provide financing options to encourage investment from bodies such as pension funds, and support skills training to boost the workforce of the construction.
It also includes an enhanced commitment of 20,000 affordable homes by the end of 2028, up from the previous pledge 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 Agreement recognizes that the bulk of this supply must come from the market, with government playing a key role in activating and kick-starting investments.
“We want more Australians to know the security of decent housing and more Australians to realize the aspiration to home ownership.
“It’s more important than ever that we work together to make sure there’s an adequate supply of affordable housing where it’s needed – close to jobs, transport and other services.
Industry modeling from earlier this year indicated that the private sector was unlikely to meet its target of 200,000 new homes per year through 2026 under current market pressures.
Master Builders Australia CEO Denita Wawn said she was delighted with the “timely” support.
“Master Builders has long been advocating for the barriers in the building and construction industry that prevent the construction of many of the homes we need to be resolved.
“We thank the federal government for taking the first step in bringing all parties together to begin addressing this crisis and we look forward to working with all levels of government to ensure this is achieved in a cohesive manner.
Housing Industry Association chief executive Graham Wolfe also said the initiatives were a step in the right direction.
“Labour’s first budget shows leadership in tackling Australia’s housing supply and affordability challenges for all Australians.
“Importantly, this target provides a necessary indicator for governments at all levels that priority action is needed if housing supply falls below 200,000 new homes each year.”