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Australia’s residential building sector faces critical challenges at HIA National Policy Congress
Newsdesk · 2026-04-15 · via Property Buzz

As Australia’s residential building sector grapples with mounting challenges, industry leaders are set to converge at the annual Housing Industry Association (HIA) National Policy Congress this week. The gathering, scheduled for Thursday, 16 April 2026, on the Gold Coast, comes at a critical juncture for the home building industry, which is under pressure to meet the federal government’s ambitious target of delivering 1.2 million homes by 2029.

Jocelyn Martin, Managing Director of HIA, emphasised the significance of this year’s congress, noting, “This will be one of the most important national congresses in years, with the industry facing significant headwinds in meeting the Federal Government’s commitment to deliver 1.2 million homes by 2029.” The congress is expected to address a range of pressing issues, from geopolitical tensions to domestic policy shifts, that are impacting the sector.

Managed

The ongoing conflict in the Middle East and speculation about potential changes to tax settings in the upcoming Federal Budget are top of mind for industry participants. “The potential impact of ongoing conflict in the Middle East, combined with continued speculation about changes to current tax settings in the May Federal Budget, will be front of mind for many members,” Martin stated. The rising cost of energy, exacerbated by global events, is another concern, particularly for builders locked into fixed-price contracts.

The construction industry is also bracing for possible changes to capital gains tax and negative gearing, with both the Prime Minister and Treasurer not ruling out such adjustments. Martin warned, “The equation is simple — if you tax more of something, you get less of it.” She highlighted that around 40 per cent of new dwellings last year were financed by investors, cautioning against policy changes that could create uncertainty in this segment of the market. “Punishing investors does not make it easier for young people to buy a new home, nor will it improve the budget position,” she added. Martin reiterated that the only sustainable solution is to build more homes, a message she believes the industry will communicate clearly during the congress.

Another focal point at the congress will be the rising cost and complexity of home building, attributed to a decade-long increase in regulatory red tape. Martin pointed out, “Regulatory complexity is adding significant pressure to builders, and it is important to remember current global events did not create Australia’s housing crisis. While they will make recovery more difficult, many of the underlying problems are home-grown.”

The congress presents an opportunity to reform the National Construction Code (NCC), a critical document governing home building in Australia. Martin argued, “The NCC has become overly complex and has been asked to solve too many issues. As a result, it is no longer fit for purpose. Builders are strongly of the view that the time is right for a complete rebuild to restore it as a world-leading code.”

In addition to regulatory challenges, the congress will address skill shortages and the need to unlock Australia’s skilled migration system. The industry’s approach to artificial intelligence and the appropriate scope of government regulation will also be debated, with a draft policy position to be considered.

Australia’s housing sector is at a crossroads, as Martin remarked, “Australia is at a crossroads when it comes to home building. While ambitious housing targets have been agreed, too much of the policy agenda across all levels of government is working against the affordable and timely delivery of new homes.” She underscored the importance of forums like the HIA National Policy Congress, stating, “There is arguably no one better placed than home builders, manufacturers and related professionals to understand these challenges and develop practical solutions.”

The congress will set the stage for the 2026 HIA National Conference and Australian Housing Awards, providing a platform for industry stakeholders to collaborate and strategise on overcoming the hurdles facing Australia’s residential building sector. As the industry gathers on the Gold Coast, the discussions and decisions made at this pivotal event will likely shape the future of home building in Australia.