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.

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.