Housing Targets Turn 1: We Need Five-Year Rolling Plans to Boost Supply Productivity
The Property Council of Australia today celebrated the first birthday of Australia's national 1.2 million new homes target by calling for a redoubling of effort at all levels of government, and for the Federal Government to help the next generation of Australians by committing to a framework of rolling five-year housing targets.
The Property Council also called on states and territories to focus on building a culture of 'yes' across decision-making bodies, better tax settings, improved planning and assessment systems and a heightened focus on productivity, including better skills capacity.
"We're projected to be 262,000 homes behind the 2029 target but imagine the gap without these reforms - business as usual would have been even more painful.
"When we get to 2029, we'll see which states have made it and which have not. The act of measuring gives us a better understanding of why some states are succeeding and some failing.
"That's why we need a national commitment to continue these 5-year planning and housing targets. Hopefully, that will be an outcome on the table for the August Productivity Roundtable.
"While the number of new homes being built is not where we'd like it to be, the welcome 1.2 million new homes target is driving supply side thinking that has played second fiddle to policies that boost demand since the turn of the century.
"Planning improvements so far have largely come through facilitation programs and not whole of system reform. That needs to change urgently.
"We also desperately need to address falls in productivity that mean we're building fewer than half as many homes per hours worked today than in the mid-1990s.
"With states in debt through the next decade, we also need a grown-up conversation about state-based apartment-killing foreign investor taxes that drive institutional investors away from partnering with Australian companies on new housing, industrial and commercial projects," Mr Zorbas said.
To meet the National Housing Accord target, more than 60,000 new homes are needed every quarter. In the December quarter, only 45,167 homes were built across Australia, up 0.4 per cent from the September quarter, and 41,911 homes were commenced, down 4.4 per cent.
- Better investment and tax settings to attract capital and reduce friction.
- Planning for better cities by simplifying systems and unlocking supply.
- Boosting productivity through skills, sustainability and innovation.
Mr Zorbas said the industry stands ready to partner with governments that are serious about solutions.
"We need to move from 170,000 homes a year into the high 200,000s to meet the Accord's target. That requires bold leadership to dissolve assessment and approval gridlock in key corridors," he said.
