As Australia embarks on a plan to build 1.2 million new homes over the next five years, the poor quality of the country’s existing housing stock has come under sharp scrutiny.
A new report from the Australian Housing and Urban Research Institute (AHURI) reveals that Australian homes are falling well short of international standards, with most households suffering from inefficient construction or insulation that drives up energy costs and harms occupant health.
The report, titled A National Roadmap for Improving the Building Quality of Australian Housing Stock, highlights a stark reality: approximately 70% of Australian homes have an energy rating of three stars or lower. Cracks in walls, mould, and plumbing issues are the most common defects, with 70% of homes across the country reporting at least one major problem. These issues not only affect the physical integrity of the homes but also lead to high energy bills, poor indoor air quality, and increased financial stress for homeowners and renters alike.
“Australians deserve better than low-quality, inefficient housing,” said Associate Professor Lyrian Daniel of the University of South Australia, the report’s lead researcher.
“While energy efficiency standards for newly built and substantially renovated homes started in 2003, 82% of new Australian homes are still designed to meet only the minimum requirements, which are low by international standards.”
The report underscores that even the current requirement of a seven-star energy rating for new homes in Australia is below what is needed to significantly reduce energy consumption and improve living conditions. In contrast, a nine-star energy rating, which eliminates the need for mechanical heating and cooling, is considered the benchmark for low-energy homes globally.
“We need to bring all houses up to a meaningful minimum standard to reduce heating and cooling costs and carbon emissions, while providing occupants with healthy and climate-resilient homes,” said Ms Daniel.
One key recommendation from the AHURI research is the introduction of mandatory energy performance disclosure policies. Voluntary policies, while beneficial, only improve a small fraction of the housing stock, according to the report. In contrast, mandatory approaches, like the ACT Government’s compulsory energy efficiency disclosure requirement, have been shown to drive significant improvements in the energy performance of homes.
“The ACT’s mandatory disclosure requirement means the Territory has the highest level of energy efficiency improvements to existing owner-occupied dwellings,” she said.
“Policies that mandate the disclosure of dwelling energy performance could improve housing markets with better consumer information about the performance of houses offered for sale or lease.”
Without stronger housing standards and more aggressive regulatory enforcement, Australia risks perpetuating its current housing inefficiencies, especially as the country ramps up its home-building efforts.
By 2050, it is estimated that there will still be seven million pre-existing homes that don’t meet adequate energy standards, leaving millions of Australians stuck in subpar living conditions.
Ms Daniel highlighted the need for an independent, rigorous process for building compliance, suggesting that organisations like the Australian Building Codes Board play a central role in developing and enforcing these standards.
“Ultimately, a multi-pronged strategy will be needed to develop fit-for-purpose housing standards policy in Australia,” she said.
This strategy should include improved performance standards for new houses, mandatory energy performance disclosure of all dwellings, and robust regulatory oversight.
