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ACT runs last in solving housing crisis, says HIA

 

An industry body has named the state leading the way in solving a national housing supply crisis.

By Jacob Shteyman in Canberra

The Housing Industry Association has scored all the states and territories for the effectiveness of their policy announcements over the past two years and determined that South Australia is leading the way to helping the country achieve its housing supply targets.

The Malinauskas government has implemented “an advantageous blend of planning innovation, skills investment and housing affordability policies”, positioning the state as best-placed to meet its share of the national 1.2 million new homes target over five years.

SA has made strides to accelerate land releases and development approvals, revamped its planning system including using artificial intelligence to automate simple approvals, removed stamp duty for first home buyers and increased investment in training for construction trades.

SA was handed a nine out of 10 on the HIA’s scoreboard, followed closely by WA on eight.

“Despite these steps forward, neither South Australia nor Western Australia are on track to build the number of homes required to meet their contribution to deliver on the government’s 1.2 million homes target,” said HIA senior economist Matt King.

At the other end of the scale, the ACT was the most disappointing jurisdiction, scoring a four out of 10.

The Territory government made some positive moves, including allowing more dual-occupancy dwellings on residential blocks, but lacked policy to streamline planning processes, the scoreboard noted.

Andrew Donnellan, secretary of housing affordability advocacy group Greater Canberra, was concerned by a dramatic drop off in new dwelling approvals in the ACT over the last few quarters.

“The new housing supply that has come online in the last few years, while we have been towards the top of the states and territories, has been really, really critical to maintaining stable housing prices and rent,” he told AAP.

“We are concerned that that’s not going to hold up for much longer.”

The government has yet to translate its rhetoric about permitting more missing-middle housing into policy and developments were still too exposed to delays from third-party appeals.

The ACT government recently unveiled a record $1 billion deficit.

Allowing more in-fill development in areas where infrastructure already exists would help increase tax revenue and reduce the need for building out roads and water pipes, helping the territory’s stretched budget, Mr Donnellan said.

SA Housing Minister Nick Champion said his government was taking action to resolve the housing crisis.

“Through our Housing Roadmap we are making changes, introducing policies and funding considerable investments to increase the supply of homes,” he said.

“The government is working with the property and development industry to unlock more land so they can build the houses we need now.”

 

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One Response to ACT runs last in solving housing crisis, says HIA

David says: 8 February 2025 at 8:22 am

Scoring 4 out of 10. I wonder how that is measured? Every new house that is built that is rented rather than owner occupied is adding to the housing/cost of living crisis. Renters get nothing for the money they have spent as it is not along term solution. At the end of renting, if they ever reach that point, entering the housing market will be even more expensive. Does the 4 out of 10 take that into account? Watch this space for the Chalmers effect where down the line we get a massive increase in the demand for public housing.

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