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Report Highlights Declining Productivity in Australian Housing Construction

The Productivity Commission finds a 53% drop in housing productivity over 30 years, exacerbating the nation's housing affordability crisis.

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Governments need to review their housing construction regulations to address sluggish productivity if they want to fix housing affordability, according to a new report.
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Overview

  • Australian housing construction productivity has halved since 1995, with fewer homes built per hour worked, according to the Productivity Commission.
  • The report identifies slow approval processes, lack of innovation, a fragmented industry, and workforce challenges as key barriers to efficiency.
  • Construction costs have risen by 40% in the past five years, while residential build times have increased by 80% over 15 years.
  • Federal and state governments are falling short of their goal to build 1.2 million homes in five years, with only 176,000 homes completed in the past year.
  • The commission recommends streamlining regulations, fostering innovation, and improving coordination across government levels to address the housing crisis.