The Planning Institute of Australia (PIA) has welcomed the release of the National Housing Supply and Affordability Council’s State of the Housing System 2026 report, saying it reinforces the need to deliver more homes through better coordinated, long-term planning.
PIA Chief Executive Officer, Matt Collins, said the report shows that despite governments progressing planning reform, affordability continues to worsen and many approved homes are not being built.
Collins said governments are taking significant action to improve planning systems and enable more housing, including streamlining approvals and supporting greater density, but feasibility and infrastructure issues mean too many approved homes are not progressing to construction.
“Our planning systems are getting better at approving homes, but feasibility and infrastructure issues mean too many approved homes aren’t getting built,” Collins said.
He said the key bottlenecks now sit beyond the approvals process, where projects often fail to proceed due to financial viability challenges or a lack of enabling infrastructure.
PIA said the report identifies rising construction costs, labour shortages and infrastructure constraints as major barriers to delivery, with global uncertainty adding further risk.
Collins said the report highlights how global instability, including conflict in the Middle East, could push costs higher and reduce the number of homes delivered.
He said better coordination across governments and industry is critical to turning approvals into completed housing.
Collins said the report notes that the timely provision of land and infrastructure for housing construction has been held back by inefficient funding arrangements and a lack of coordination across governments.
“We need growth to be properly planned and supported by infrastructure, and this is what gives projects the best chance of being delivered,” he said.
Collins also welcomed the report’s new Housing Outcomes Framework as an important shift in how success is measured.
“The new Housing Outcomes Framework provides a clearer basis for what a well-functioning housing system looks like: one that delivers housing that is affordable, fit for purpose and secure for people at all incomes and in all locations,” he said.
“It also recognises the different pressures people face at different points across the housing continuum.
“Ultimately, this recognises that we need to build more homes, but we also need to deliver more liveable places, and that’s why planning matters more than ever,” he said.
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