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Why the surge in home construction will do little to address affordable housing

Land, labour and materials are all in short supply as Australia faces a worsening housing crisis.

Jun 20, 2022

Following a two-year slowdown in housing construction, the boom is back, with a record number of houses being developed. But it’s not likely to fix Australia’s shortage of affordable or social housing, despite government investment. Labor, land and material shortages continue to slow down construction, while interest rates will keep rental costs high.

While more investment is always needed, simply throwing money at more housing won’t fix Australia’s housing crisis.

Supply issues hamper progress

COVID-19 supply chain disruptions coupled with the invasion of Ukraine have resulted in shortages of migrant workers and materials like timber in Australia, with some building firms focusing on large development contracts over individual homes. There’s a two-year backlog of construction that’s only now being addressed.

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About the Author

Amber Schultz

Associate Editor @AmberMaySchultz

Amber covers health and social affairs for Crikey. She has been shortlisted for two Young Walkley Awards, was the 2021 Mumbrella Young Writer of the Year for her coverage of sexual violence, and in 2018 completed the Jacoby-Walkley scholarship. She holds two Master degrees and previously worked for The Age, Nine News and ABC's Tonightly.