Australia’s housing supply challenges keep making headlines (especially around election time), with pressures felt across the industry. But for builders running everyday businesses, the impact is not just about market trends but the day-to-day realities of keeping projects moving and clients happy.

Yesterday, the Housing Industry Association (HIA) welcomed the Federal Government’s recent commitment of $304.3 million to support housing development in New South Wales, unlocking nearly 60,000 new homes. HIA Managing Director Jocelyn Martin described it as “a positive move” but emphasised that,

“Further investment is required to ensure Australia meets its housing targets and improves affordability.”

“The biggest barrier to increasing housing supply remains the lack of shovel-ready land. Without significant investment in enabling infrastructure, such as roads, water, and sewerage, land cannot be developed, and homes cannot be built,” Ms Martin said.

The HIA has called on the Federal Government to allocate $12 billion over five years to unlock land supply, and help meet the ambitious target of 1.2 million new homes. Currently, the industry falls short by about 60,000 homes each year, a gap that makes achieving long-term targets difficult.

This urgency is further underscored by recent findings from the Forest & Wood Products Australia (FWPA) report, which reveals that Australia needs to deliver around 2.48 million new dwellings by 2034 to meet demand.

That’s approximately 225,400 new homes every year, a rate never before achieved.

The report underscores Australia’s growing population, expected to reach nearly 31 million, combined with shrinking household sizes dropping below 2.4 people per home, which is a major factor driving increased housing demand. It also highlights the pressure to adopt more efficient construction methods, including better use of timber in mid-rise developments.

For builders, these macroeconomic challenges are compounded by the reality of running lean operations. Delays in material supply can mean rescheduling subbies, pushing out project schedules, and facing tough conversations with clients, (if you need help remembering just what that’s like, read our piece on 5 years on from Covid-19).

Builders are still managing tight margins while trying to keep projects moving and clients want certainty as much as ever before.

While the broader policy landscape is complex, there are small steps builders are taking to stay ahead. Over the last month our contributors have shared insights like,

• Seek out alternative suppliers or local material options to avoid major delays when and if they do come.
• Lock in key materials early to mitigate supply gaps.
• Set realistic expectations upfront about timelines and potential delays – with all parties.
• Collaborate with other builders to share resources or subbies contacts when it’s in your shared interests.

Despite the hurdles, many builders can remain optimistic, noting that strong demand for new homes and renovations is still creating opportunities. However, the call for streamlined approvals and better infrastructure planning continues to be a key industry message.

At The Good Builder, we know that builders want to keep building, and the demand is strong, but as an industry, we need to have confidence that the whole system is set up to deliver homes faster, from utilities and road infrastructure through to approvals, grants and concessions for new homeowners.

As these issues remain in the news, it’s the everyday builders on the ground who are finding practical ways to navigate the pressures, keeping the focus on solutions, quality outcomes, and supporting local communities. That’s why we’re here, and that’s what The Good Builder community is all about.

Meet Us at the HIA State of the Nation

Our Co-Founders, Aaron and Pete, will be attending the HIA State of the Nation event in Brisbane on March 18th. This event is a must-attend for builders, business owners, and decision-makers looking to understand the market forces shaping the industry this year.

If you’re attending the event, come and say hi! We look forward to seeing you there.

Author: Jonathan Tibbits

Starting his career as a lawyer, Jonathan transitioned into project management, compliance, and certification for companies throughout the industry supply chain in Australia and New Zealand. With international experience in green building, sustainability and stakeholder communication, he is passionate about innovation and building transparency and trust.