From promise to productivity: Why this must be the era of housing delivery

With the Federal Government securing a convincing second term and reaffirming its commitment to the National Housing Accord and the Housing Australia Future Fund, the window for policy development has definitively closed. 

Voters sent a clear message that Australia’s housing crisis demands more meaningful action. 

This term must be characterised by delivery, where policy maturity, infrastructure readiness, and construction innovation converge to address affordability and supply challenges at speed and scale.

Political capital meets policy maturity

The re-elected government enters this term not only with renewed legitimacy but with the policy architecture needed to deliver results. The $10 billion Housing Australia Future Fund (HAFF), paired with the ambitious National Housing Accord target to build 1.2 million homes over five years, creates both a financial and legislative foundation. The HAFF is set to enable the construction of 30,000 new social and affordable homes in the next five years. 

These efforts will be focused on vulnerable cohorts, including the elderly, women and children at risk of domestic violence, and people experiencing homelessness, with additional funding earmarked for remote Indigenous housing repair and homelessness support services. Critically, this represents a shift from ambition to execution.

NSW as a blueprint for the nation

NSW has emerged as a pioneer in housing reform, offering a policy framework that could be scaled nationally. The Low and Mid-Rise Housing Policy is accelerating approvals for infill developments and enabling a broader spectrum of residential typologies between detached homes and high-rise towers. The Pre-Sale Finance Guarantee is further facilitating financing for developments previously considered high risk due to pre-sale constraints.

The Housing Delivery Authority (HAD) is a welcome change to fast-track major housing projects across the state. The HDA will assess and approve major housing projects, potentially bypassing traditional council processes, especially for developments meeting certain criteria (e.g., cost thresholds for Greater Sydney and regional NSW). The HDA aims to expedite the approval process, cutting through red tape and delays. Scaling these reforms nationally would address gaps in diversity and location of housing stock, aligning supply more closely with community needs. 

Infrastructure as enabler, not bottleneck

Housing delivery is intrinsically linked to infrastructure delivery, as homes cannot be built faster than the infrastructure that supports them. The federal Housing Support Program must be leveraged to coordinate and accelerate investment in water, transport, electricity, and digital connectivity. Timely and targeted infrastructure development ensures new housing integrates seamlessly into communities, avoiding the pitfalls of isolated, underserviced developments.

Failure to synchronise infrastructure with housing construction risks perpetuating poor urban outcomes and contributes to increasing holding costs for asset owners and developers. Communities are increasingly burdened by developments that lack public transport access, community facilities, or essential services, conditions that exacerbate social isolation and infrastructure stress. Coordination across all levels of government including key infrastructure agencies must be elevated as a strategic imperative.

Unlocking urban potential

A proactive approach to urban land utilisation is essential. Mixed-use sites near existing transit corridors and social infrastructure represent untapped opportunities. Prioritising these areas allows for higher-density development without overwhelming existing infrastructure. These sites can accommodate multi-functional buildings that combine residential, commercial, and civic uses, enhancing liveability and economic vitality while curbing sprawl.

Mainstreaming Modern Methods of Construction (MMC)

Modern Methods of Construction (MMC) are no longer experimental. Prefabrication, modular housing, and Design for Manufacture and Assembly (DfMA) techniques have proven their efficacy globally. In Australia, $54 million has already been committed to MMC initiatives, signalling intent, but scaling is now imperative. The construction sector must integrate these technologies as standard practice, not fringe innovation.

MMC offers a pathway to reduce build times, improve site safety, and enhance environmental sustainability. As housing targets become more ambitious, MMC adoption can deliver high-quality housing at reduced cost, while alleviating pressure on labour-intensive traditional methods.

Productivity: The final frontier

Australia’s construction productivity continues to lag behind global standards. Addressing this constraint is pivotal to successful housing delivery. Digitisation, from Building Information Modelling (BIM) to supply chain analytics, can streamline processes and mitigate delays. Workforce development programs must upskill labour to meet emerging technical demands, while procurement reform can improve collaboration and reduce timeframes.

Increasing productivity across the housing pipeline not only improves delivery speed but also enables cost savings and quality enhancements. This is the frontier where industry, government, and academia must converge to shift the productivity curve and lay the foundation for enduring reform.