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State governments are scrambling to solve housing shortages, but the real cause of the shortages will continue to sabotage any strategies designed to accelerate home building. While future generations will be deprived from building and owning sustainable homes, it's a mistake to blame the situation simply on population growth. This is not a crisis of fewer homes being built due to our population size. This is a crisis of the complex regulation sector and its impact on supressing builder numbers.
The history of Australian home building sits proudly with immigrants, those small and medium business owners who contributed to our post WWII building supply. But now for over twenty years we’ve made it
incredibly difficult for this group to participate in an industry they played a significant role in.
The current rate at which regulatory measures are developed and implemented has overwhelmed builders.
Like an antiquated telephone directory, the builder’s rule book grew from 90 pages in the 1980’s, to an
implausible 300 today.
With 30 years of experience in the industry delivering residential and commercial estates, I have never witnessed as high a level of building insolvencies than in the past six years. During that period, on average, an increase of 17.6% of class 1 builders have gone insolvent each year, compared to a net annual registration growth of just 3.3%. With the population growing by 1.5% a year in the same period, the problem becomes more
apparent. In 2019 we had 411 class 1 builders per million people, as of today, it’s closer to 377. An 8.4% reduction in capacity.