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The HIA has urged the government to invest $12 billion in infrastructure over the next five years to help meet housing targets.
The Housing Industry Association (HIA) has called on the federal government to commit to a $12 billion investment in critical infrastructure in the upcoming budget in a bid to boost land supply and ease what it calls “Australia’s growing housing crisis”.
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The national industry association for residential building in Australia said the pre-budget submission highlighted how infrastructure costs were often passed on to home buyers, driving up prices and worsening the affordability crisis.
HIA’s proposal called for a five-year, $12 billion commitment to fund roads, water, and utilities, which HIA managing director Jocelyn Martin said was necessary to address the nation’s “chronic housing shortage” and accelerate new home building.
The proposal was made ahead of the 2025–26 federal budget, which is scheduled for 25 March 2025 (although a potential early election could push this date back) and the deadline for pre-budget submissions was 31 January 2025.
Individuals, businesses, and community groups were invited to submit their ideas and priorities for the budget, which the government will reportedly consider when developing its budget policies and strategy.
“Right now, the single biggest obstacle to housing supply is the lack of shovel-ready land,” Martin said.
“Without essential infrastructure in place, land cannot be developed, and homes cannot be built.”
The HIA’s submission comes after recent data showed that the number of dwelling commencements remains well below the government’s target of 1.2 million new homes by 2029.
Commenting on the figures at the time, HIA economist Maurice Tapang said: “Residential building approvals in 2024 increased from the decade low seen in 2023 but were nowhere near the levels needed to meet underlying demand for housing.”
Martin agreed, saying: “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.”
Martin said that the burden of funding critical infrastructure had been placed on developers, which then were forced to pass costs on to buyers.
She said that prioritising regional housing was essential, but warned that the supporting infrastructure needed to be improved.
“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,” Martin said.
“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.”
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