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Property Buzz

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Housing industry calls for urgent policy reform to boost supply
Newsdesk · 2026-04-17 · via Property Buzz

The Housing Industry Association’s (HIA) National Policy Congress (NPC) convened on the Gold Coast on 16 April 2026, bringing together representatives from across Australia to address pressing challenges in the residential building sector. The annual meeting, which includes the Chairs of HIA’s eight specialist committees, issued a stark warning about the ongoing housing supply crisis, urging governments to eliminate barriers to construction and avoid policies that could deter investment.

The NPC highlighted several critical issues impacting the industry, including rising costs, global uncertainties, workforce shortages, and a complex regulatory environment. These factors are creating significant hurdles for housing delivery, prompting industry leaders to call for immediate action.

Managed

“We are united in our view that the only sustainable solution to Australia’s housing crisis is to build more homes,” said a spokesperson for the NPC. “This requires policies that support investment, productivity, and confidence.”

International conflict and housing

One of the primary concerns discussed was the impact of international conflict on residential construction activity in Australia. The ongoing global tensions have led to increased material costs, extended construction timeframes, and heightened uncertainty in housing markets. This situation is particularly challenging for builders operating under fixed-price contracts, as they face unexpected cost increases.

The NPC emphasised the need for government intervention to prevent further impediments to housing delivery. “All levels of government must avoid introducing policies that would further impede housing delivery, such as additional taxation, regulatory burdens, or administrative delays,” the NPC stated.

Taxation policy and investment

Taxation policy was another focal point of the Congress, with members expressing strong opposition to changes that could disincentivise investment in new housing. The Congress noted that over 40 per cent of new homes are financed by investors, and recent research suggests that increasing capital gains tax on housing could reduce investment in new home supply.

“Improving the supply of housing requires more investment, not less,” the Congress asserted. The industry is calling for policies that encourage, rather than hinder, investment in the housing sector to address the ongoing crisis.

Reforming the National Construction Code

The NPC also discussed the need to overhaul the National Construction Code (NCC), which governs home building in Australia. The current code is viewed as overly complex and tasked with solving an expanding number of policy issues, rendering it unfit for purpose.

“Builders are strongly of the view that the time is right for a complete knock down rebuild to restore it as a world-leading code,” the NPC stated. The Congress urged for a pause on further regulatory changes until at least 1 May 2027, allowing the industry some breathing room.

Embracing artificial intelligence

The potential of artificial intelligence (AI) to enhance productivity in the residential building industry was another key topic at the meeting. AI is seen as a tool that can improve business operations, deliver on-site efficiencies, achieve cost savings, and strengthen supply-chain outcomes.

However, the Congress cautioned against over-regulation, which could limit the industry’s ability to adopt these new technologies. “Governments must strike an appropriate balance between protecting privacy and intellectual property and ensuring that innovation is not unintentionally constrained,” the NPC advised.

Adopting a values statement

In a move to guide behaviour and decision-making within the industry, the NPC unanimously agreed to adopt a Values Statement. This document articulates core beliefs and principles intended to inform how the industry operates and engages with stakeholders.

The Values Statement is underpinned by eight core principles designed to reinforce lawful and acceptable conduct, build trust, strengthen professionalism, promote ethical behaviour, and improve safety and building performance outcomes.

Circular economy considerations

Finally, the NPC addressed the concept of a circular economy, which aims to maintain the value of materials across their lifecycle. While the federal government’s net zero plan encourages the adoption of circular economy principles, the Congress warned against imposing these as mandatory requirements.

“Any targets must not compromise the primary objectives of the National Construction Code (NCC) and relevant Australian Standards relating to life safety, nor undermine housing supply or affordability,” the NPC concluded. The industry advocates for policies that preserve consumer and industry choice in materials and building solutions, recognising the need for flexibility given regional and geographical considerations.