The Master Builders Australia building and construction industry forecasts for 2024 indicate that while over 1 million homes will commence construction by the end of financial year for 2029, it is likely that the nation will fall 110,000 homes short of its 1.2 million target.
The forecasts cover not only the remainder of the year ahead, but five years into the future. Master Builders CEO Denita Wawn believes that financial pressures will ease in the coming months, which will provide relief for the entire housing market.
“We’re seeing inflation starting to near its target range and expect a fall in interest rates which will lead to a more favourable investment market,” she says.
“The Federal Government has also announced a number of significant housing measures that focus on increasing supply in social and affordable housing and the rental market. However, constraints on the supply side like workforce shortages, industrial relations changes and a poor planning system counter the full effectiveness of these measures.”
Wawn says that productivity has dropped by nearly a fifth over the last decade, and believes that new planning reforms to reduce costs will assist with reaching the required targets.
“At a Federal level, the government's priority should be growing the building and construction workforce. We heard only recently from BuildSkills Australia that the industry needs 90,000 workers in the next 90 days.
“Domestically, we cannot fill this gap. We need to think outside of the box with better apprenticeship incentives, reskilling migrants already in Australia, and a targeted international campaign to bring in skilled migrants.
“Investment and support in the whole built environment is important. While the commercial and civil construction sectors have helped shield the economy from periods of negative economic growth, this is coming to an end.”
Wawn says that while she believes the construction industry is ready to provide the country with the homes it needs, government assistance is required.
“We can’t build the homes we need without the appropriate commercial and civil infrastructure to support it. This includes critical infrastructure such as utilities. Builders are up to the challenge to reach these targets but the barriers on the road need to be cleared to get the job done.”
