11 September 2023
In the current economic climate, with the industry still working through trade and materials shortages and cost hikes, is the National Cabinet’s housing target of 1.2 million homes in five years and the requirements of a 2032 Olympic Games actually achievable?
It's a great question and certainly the industry is up for the challenge – however, there’s no denying it’s a tough road ahead, particularly at a time when the supply of new homes is headed in the wrong direction.
Of the 1.2 million national target, Queensland’s share is approximately 20 per cent – equating to 48,000 homes needed per year over the next five years. We have a track record of building 50,000 new homes in a year back in 2016 – so, it can be done. But looking to the future, the pipeline of new housing is just 35,480 dwellings approved in the 12 months to June 2023. Our forecast for 2023/24, is the commencement of approximately 36,000 dwellings – well short of where it needs to be to meet the target.
So, if Queensland needs more homes than ever as we face a worsening housing crisis; why is the Queensland Government throwing more cost and complexity at an industry already facing substantial hurdles?
Changes to livable housing and energy efficiency provisions via the National Construction Code (NCC) set to come into force from 1 October 2023 will see the cost to build go up around $20,000-$30,000. Some will incur much higher costs and some less, depending on factors like the type of construction, the climate zone, topography, and lot size.
Master Builders supports inclusive, sustainable, and affordable housing. We have worked for many years with government and other stakeholders to try and achieve sensible and practical outcomes when implementing the NCC 2022 livable housing and energy efficiency requirements.
However, we stand by our view that now is not the right time to increase the cost of new housing. We are in the middle of a housing crisis and costs have already risen by 42 per cent over the past three years.
Our previous calls for solutions and additional time to iron out the complex issues have also been ignored. While it’s true these laws have been many years in the making, the regulations and codes that provide the precise requirements and are necessary for implementation are either still yet to come or have only recently been confirmed, not allowing the industry sufficient time to prepare.
The final version of the NCC 2022 was only published at the beginning of 2023; the Queensland Development Code revision (considered the final rules for Queensland) hasn’t been released; and the software used by most Queensland energy assessors (BERS) is still not available.
Lack of detail and clarity has hamstrung the industry from changing their designs and plans and being confident not only in the revised costings, but the compliance of the homes they build.
Every other state in Australia has acknowledged the challenge in adopting these new requirements, the current economic climate and housing crisis, and delayed the changes or decided not to implement them at all. The Queensland Government has not.
We need government to reduce the red tape hampering the industry and clear the way for builders to get on and build. To meet these housing targets and deliver the massive construction program underway in Queensland over the next 10 years (hospitals, hydrogen, renewable energy and the Olympic Games) we also need more people coming into the sector – something like an additional 18,000 workers each year. There are no silver bullet solutions to this problem, so we must start discussions and put all ideas on the table.
We welcome collaborative discussions with all levels of government on ways to address supply problems, including planning, density, land release, and infrastructure charges, as well as measures to address the skilled worker shortage.
It’s going to take the proverbial village to meet these targets – but we’ll need to work together to make it happen.
Paul Bidwell
CEO
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