Housing Industry Association reveals best Australian state at addressing housing crisis

Governments across Australia love to spruik their efforts to tackle housing unaffordability, but which ones are actually making a difference and which ones are just putting up a facade?

The Housing Industry Association has scored all the states and territories for the effectiveness of their policy announcements over the past two years and determined that South Australia is leading the way to helping the country achieve its housing supply targets.

The Malinauskas government has implemented “an advantageous blend of planning innovation, skills investment and housing affordability policies”, positioning the state as best-placed to meet its share of the national 1.2 million new homes target over five years.

South Australia has made strides to accelerate land releases and development approvals, revamped its planning system including using artificial intelligence to automate simple approvals, removed stamp duty for first home buyers and increased investment in training for construction trades.

SA Housing Minister Nick Champion said his government was taking action to resolve the housing crisis.

“Through our Housing Roadmap we are making changes, introducing policies and funding considerable investments to increase the supply of homes,” he said.

“The government is working with the property and development industry to unlock more land so they can build the houses we need now.”

South Australia was handed a nine out of 10 on the HIA’s scoreboard, followed closely by Western Australia on eight.

“Despite these steps forward, neither South Australia nor Western Australia are on track to build the number of homes required to meet their contribution to deliver on the government’s 1.2 million homes target,” said HIA senior economist Matt King.

At the other end of the scale, the ACT was the most disappointing jurisdiction, scoring a four out of 10.

The Territory government made some positive moves, including allowing more dual-occupancy dwellings on residential blocks, but lacked policy to streamline planning processes, the scoreboard noted.

Andrew Donnellan, secretary of housing affordability advocacy group Greater Canberra, was concerned by a dramatic drop off in new dwelling approvals in the ACT over the last few quarters.

“The new housing supply that has come online in the last few years, while we have been towards the top of the states and territories, has been really, really critical to maintaining stable housing prices and rent,” he told AAP.

“We are concerned that that’s not going to hold up for much longer.”

The government has yet to translate its rhetoric about permitting more missing-middle housing into policy and developments were still too exposed to delays from third-party appeals.

The ACT government recently unveiled a record $1 billion deficit.

Allowing more in-fill development in areas where infrastructure already exists would help increase tax revenue and reduce the need for building out roads and water pipes, helping the territory’s stretched budget, Mr Donnellan said.

He also applauded the NSW and Victorian governments for their ambitious planning overhauls, including greatly increasing allowable building height limits around public transport hubs.