by Matt McKenzie, courtesy of The West Australian.
Australian builders are finishing half as many homes per hour as they were 30 years ago, prompting a top economic umpire to demand that red tape be shredded to help fix the continuing housing crisis.
Construction has “consistently” underperformed the rest of the economy over that period, the Productivity Commission warned in a new report to be released Monday.
That malaise has added to costs, worsened the shortage of houses, and pushed the “Australian dream” further out of reach through surging prices.
It means the Federal Government will need to shake up the $83 billion sector to have any hope of hitting a national target to build 1.2 million properties by 2030.
High on the commission’s list for reform targets was the 2000page
National Construction Code, and the report called for a pause on updates to the builder’s rule book.
The report said the NCC must be reviewed after a wave of regulations – including energy efficiency rules – added to building costs, yet failed to deliver benefits to the community,
Commission chair Danielle Wood said “the sheer volume of regulation” had a deadening effect on the industry.
“Too many Australians, particularly younger Australians, are struggling to afford a home in which to live,” Ms Wood said.
“Lifting the productivity of home building will deliver more homes, regardless of what is happening with the workforce, interest rates or costs.”
A lack of innovation, slow regulators, and the dominance of small building firms also slowed productivity, the report said.
Workers have been hoovered up by infrastructure projects and tradies struggle to switch States because of restrictions on their licences.
Master Builders Australia chief Denita Wawn said there would be “no silver bullet to solving woeful productivity in the industry”.
“Every day we drag our heels on tackling the challenges faced in the industry, the longer we drag out the housing crisis,” Ms Wawn said.
She backed the commission’s recommendations and said
they should be considered by governments.
WA has been ground zero for the building bubble, and housing remains a key battleground in the State election.
The price tag for a new home surged 19 per cent in Perth through 2024, according to REA Group, while The West Australian revealed last week that building costs had trebled since 1999.
About 21,000 new dwellings were approved in WA last year, yet lobbyists have warned many remain stalled amid high construction costs.
