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.