Albanese and state government efforts to remedy the nation’s housing crisis are still mostly getting fail marks from a key industry group. Picture: RoyVPhotography.
Aussie governments are barely moving the dial on improving the nation’s prospect of building more homes, with a leading industry group warning policy moves are yet to have an impact.
It comes alongside alarm bells for the health of small construction firms that form the backbone of the nation’s home building industry, with growing concerns over how many are considering hanging up their tool belt or who are spending up to five hours a week handling paperwork instead of their tools.
In a Small Business Conditions Survey released this week, the Housing Industry Association polled the mum and dad builders and found most were struggling with day-to-day operating pressures, 73 per cent don’t expect to hire new staff this year and 67 per cent are finding it difficult to attract and keep skilled workers when they do hire.
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Meanwhile, a HIA blueprint scorecard tracking the performance of every state government for home building has nominally failed every one of them, except South and Western Australia where governments were ranked a three out of five.
With most other states at a two out of five or less, the report also reflects poorly on the federal Albanese government’s efforts to make housing a priority nationwide via the National Housing Accord’s 1.2 million new homes by 2029 target.
Even with improvements in the past year, the nation’s two biggest building states scored poorly with Victoria a 2.5 out of five, and NSW a two out of five.
Smaller home builders are reporting concerns about their ability to expand efforts, at a time when the nation needs them to do so at a substantial level.
Queensland was given a dismal 1.5 out of five, with HIA planning and development executive director Sam Heckel lamenting at this level hopes of completing 1.2 million new homes by 2029 were looking remote.
Mr Heckel said the longer the nation went on missing its annual targets and leaving further reform on the sidelines, the bigger future targets would need to be to reach the goal.
Just 173,232 homes were built in the 2025 financial year — well below the 240,000 annual completions needed to reach 1.2 million by the end of 2029.
The National Housing Accord By State
| State | Share of Accord target | Annual No. Needed | Percentage of national total | Dwellings built in 2025 FY |
| Australian Capital Territory | 21,059 | 4,217 | 2% | 4,109 |
| New South Wales | 376,436 | 74,787 | 31% | 42,005 |
| Northern Territory | 11,427 | 2,296 | 1% | 407 |
| Queensland | 245,740 | 49,230 | 20% | 33,448 |
| South Australia | 83,811 | 16,550 | 7% | 12,625 |
| Tasmania | 26,117 | 5,022 | 2% | 2,456 |
| Victoria | 306,324 | 61,483 | 26% | 55,663 |
| Western Australia | 129,086 | 26,415 | 11% | 22,519 |
| Total Australia | 1,200,000 | 240,000 | 100% | 173,232 |
“It’s good to have the targets, and the government has committed to a reform agenda, but it’s important to hold them to account now,” Mr Heckel said.
“And it (housing construction) should be an issue at elections in the near future, and this will be a key factor influencing how people vote.”
HIA planning and development executive director Sam Heckel believes voters will soon be venting housing frustration at the polls.
HIA industry and policy chief executive Simon Croft said with small builders representing about two thirds of home construction around the country, survey findings suggesting they would not be expanding this year should be a warning for governments.
Mr Croft said key issues holding many back were regulatory.
“A large percentage are spending more than five ours a week around paperwork and compliance,” Mr Croft said.
“And about 56 per cent have redirected staff to navigating compliance areas, but their time would be better spent building homes.”
HIA believes housing construction would proceed more rapidly with further government reforms.
He added that with the nation more than 60,000 homes short of its building targets, every effort should be “going into getting these guys and girls on to sites rather than in the office filling out paperwork”.
“But we are still hearing more stories of people thinking about closing up shop,” Mr Croft said.
He added that a lack of streamlining in regulation and paperwork processes meant many were choosing not to take on apprentices — eroding efforts to train the next generation of builders.
How HIA Rated Each State:
New South Wales – 2/5
Recognised as Australia’s “standout reformer,” launching its biggest planning shake-up in decades to fast-tracking approvals and unlock more homes;
Amendments should improve housing delivery process including time frames and pre-endorsed designs plus a Housing Delivery Authority for major projects, increasing density;
Red tape cut with new Development Coordination Authority.
How HIA has ranked NSW after improvements in the past year.
Queensland – 1.5/5
Equal worst in HIA planning blueprint scorecard for 026;
Government has rejected key planning reforms recommended by Queensland Productivity Commission;
Significant scope for improvement in the future;
Queensland target of 50,000 homes a year will “remain elusive’ without significant further reform.
Queensland has been ranked the nation’s poorest performing state for housing reform.
Victoria – 2.5/5
Gaining momentum on planning reform, with some early positive feedback on townhouse and small subdivision streamlining;
Commercial viability remains problematic due to taxation as well as the Suburban Rail Loop;
Western Australia – 3/5
Equal best score in planning blueprint scorecard;
Positive reforms from government have streamlined housing via exemptions around single houses, as well as expansion of Development Assessment Panels;
Significant rezoning has ensured future land for development;
Further reforms to Residential Design Code could streamline infill projects.
Western Australia is tied for the best state in Australia when it comes to planning reform.
South Australia – 3/5
Equal best score in planning blueprint scorecard;
Housing Roadmap has a number of key commitments that will speed up home delivery;
Digital-first planning system is being used to drive efficiencies;
In the midst of state’s largest land release program on record;
Still needs to finalise Housing Roadmap.
South Australia is Australia’s other top performing state.
Tasmania – 2/5
Planning system currently ranked “mediocre” due to lack of focus on residential land and well-located high-density housing;
Some reforms announced that are showing positive signs, such as introduction of ‘deemed approval’ rules for applications where time frames are missed;
Must address PlanBuild Tasmania portal for better statewide tracking;
More medium-density residential code consideration needed as well as better scope for taller buildings and reduced parking needs.
Victoria and South Australia are both in the middle order for reform, though still short of where they need to be to reach their home building targets.
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