The Housing Industry Association (HIA) is calling for the Future Fund to invest in new apartment construction as a solution to Australia’s ongoing housing crisis.
HIA Managing Director Jocelyn Martin says such an investment could help overcome significant barriers that have hindered the supply of new housing.
“An investment in new home building from the Future Fund would support increasing housing supply and could be used to overcome structural barriers to increasing the supply of new apartments which are vital to addressing Australia’s housing shortages,” Ms Martin said.
The HIA highlights that a lack of investment (both domestic and international) has been a core issue driving housing shortages.
“At its core, the shortage of housing in Australia is due to a lack of investment. Attracting more investment, especially into apartment construction, could help overcome the shortage of investment from domestic and international sources,” she said.
She criticised state and territory governments for introducing taxes that deter overseas financial institutions from building homes in Australia, noting that these policies have caused a 50 per cent decline in apartment construction starts over the past decade.
“If the Future Fund is to step into the gap this could see a recovery in apartment commencements.”
Apartments, she explained, are critical to addressing housing demand in Australia’s capital cities, yet their delivery is slowed by planning delays, complex building codes, and excessive red tape.
“Assuming that it takes four years to gain approval, and a further three years to build the apartments, this could see the Future Fund delivering apartments prior to the Olympics in Brisbane in 2032,” she said.
Ms Martin also pointed out that a Future Fund-backed investment could help address labour shortages in the construction industry if complemented by supportive policies.
“HIA encourages the government to direct investment into new home building and urges the Australian government to ensure this investment is not ‘hand cuffed’ with additional objectives that would add further delays and costs to construction.”
