The developer’s lobby says union-friendly IR laws could see Australia miss its ambitious national housing target.

Industry leaders claim new laws will lead to a shortfall in achieving the national goal of 1.2 million new homes over the next five years. 

The forecast from Master Builders Australia anticipates a deficit of around 110,000 dwellings by 2029.

Despite Labor's optimistic stance on housing development momentum, only the 2027-28 financial year is on track to meet the annual need of 240,000 new homes. 

The industry is still grappling with increased wait times for home completions and a significant rise in construction costs, attributed to the lingering effects of the COVID-19 pandemic.

Recent Australian Bureau of Statistics (ABS) data indicates a downturn in mortgage commitments for new home construction.

Master Builders says it is further threatened by the proposed Closing Loopholes legislation and ongoing enterprise negotiations by the CFMEU in NSW, Queensland, and South Australia.

Denita Wawn, CEO of Master Builders Australia, says there is an urgent need for federal intervention to bolster the sector, suggesting increased apprenticeship incentives as a crucial step. 

She pointed to recent claims that the industry needs approximately 90,000 skilled tradespeople to meet the target, in what she describes as the “biggest challenge for the industry across all sectors”. 

The industry's productivity, according to Wawn, has seen an 18 per cent decline over the last decade, and will require government action to streamline planning reforms and reduce construction costs and timelines.

Developers say recent demands for pay increases from the CFMEU threaten the feasibility of new developments at a time when the housing supply is critically low.

Katie Stevenson of the Property Council of Australia NSW, has joined the call for government action to address obstacles facing the development and construction sectors. 

Housing Minister Julie Collins has reiterated the government's commitment to meeting housing targets through substantial investments and collaborations with state and local governments. 

She also noted the national cabinet's agreement to allocate $500 million to aid in connecting essential services to development sites as a step towards addressing these challenges.