The Housing Industry Association (HIA) is calling on both the Labor and Liberal parties to launch more policies to help stimulate a housing recovery.
HIA managing director Shane Goodwin said any party or candidate that goes into the federal election without a significant housing platform in their policy list is ignoring a key part of the economy and the concerns of millions of Australians.
“Residential building is one of the few sectors in a position to generate substantial economic activity in the wake of the mining boom,” he said.
“New home building has a significant multiplier effect that drives activity throughout the wider economy.
“Modelling demonstrates that for a one per cent productivity increase in new home building - through cutting red tape or modernising the taxation system, for example - the wider economy will benefit by around $1 billion.
“Australia is currently building around 25,000 homes per year less than a decade ago, which is not only putting the brakes on job creation in the sector, but also placing upward pressure on housing prices.”
Mr Goodwin said housing affordability is consistently nominated as one of the top concerns of voters, and there is clearly a great deal of angst amongst Australians about how current and future generations will be able to afford a home.
The HIA says that key areas for policy action to promote a revival in new home building include the removal of inefficient taxes on new housing as well as a reduction in the red tape burden that is choking small businesses.
In addition, Mr Goodwin said he would like to see better access to finance for homebuyers and builders and a modernisation of the industrial relations system.