The Housing Industry Association (HIA) has called on the Federal Government to commit $12 billion of the upcoming federal budget toward critical infrastructure to unlock land and ease the housing crisis.
HIA Managing Director, Jocelyn Martin, said that addressing the nation’s chronic housing shortage requires a significant injection of funding for enabling infrastructure, such as roads, water and sewerage, to accelerate the delivery of new homes.
“Right now, the single biggest obstacle to housing supply is the lack of shovel-ready land. Without essential infrastructure in place, land cannot be developed, and homes cannot be built,” Ms Martin said.
“This budget is the government’s chance to invest $12 billion over the next five years to deliver the roads, water and utilities that will make new housing developments a reality.
“Without this investment, Australia will fall further behind its housing targets, leaving families and renters to bear the brunt of rising prices and worsening affordability.
“We need to build 240,000 homes every year just to meet demand, yet last year we fell 60,000 homes short. The government’s promise to deliver 1.2 million homes over five years is at risk unless there is a clear and coordinated commitment to infrastructure.”
HIA’s Pre-Budget Submission highlights how infrastructure costs are often passed on to homebuyers, driving up prices and worsening the affordability crisis.
“The burden of funding this infrastructure has been unfairly placed on developers, who then have no choice but to pass those costs on to buyers.
“It is essential that the government shares the responsibility for these costs to ensure more Australians can afford a home.
“Prioritising regional housing must be part of the solution. Regional Australia is growing, but the infrastructure simply has not kept up.
“This investment must also include a focus on our regions, making it easier to deliver affordable homes in areas where they are needed most.
“Housing supply cannot keep up with demand without the infrastructure to support it. This $12 billion commitment is the critical step we need to fast-track land supply, reduce costs and deliver homes to Australians.
“The federal budget must put housing and infrastructure front and centre – it’s the foundation of a strong economy and a secure future for Australian families.”
