UDIA's National Policy Priorities
for 2020
HOUSING DRIVES ECONOMIC GROWTH
The critical role that new housing and construction plays in fuelling economic activity is evident in new independent research undertaken by EY on behalf of UDIA National.
The research illustrates that 7.5 percent of national economic activity is generated by construction – along with 750,000 direct and indirect jobs.
The multiplier effect for demand and services generated across the supply chain is crucial for new jobs creation and more importantly domestic consumption.
In total, the direct and indirect output generated is a staggering $312 billion making the industry one of the most vital to Australia’s economic success.


OVERVIEW
The origins of Australia’s housing affordability woes can be traced back to the supply deficiency that accumulated in the lead-up to, and throughout the Global Financial Crisis (GFC).
The gap between supply and demand was estimated to have reached almost 160,000 by 2010 (National Housing Supply Council – State of Supply Report 2011).
As Australia emerged from the financial crisis, credit was easier to access, population and net migration increased, and housing demand kicked back to life. However, the mismatch between supply and demand never closed and this ‘supply gap’ fuelled rapid price growth.
Even at the peak of the construction cycle that followed, housing approvals and construction barely touched the underlying level of demand. A generation of homebuyers suffered.
Housing markets are once again at a critical juncture. Housing approvals are slowing, and development and construction pipelines are thinning – representing a medium-term risk to supply.
Yet tentative signs of demand are re-emerging. Prices have stabilised and hint at an upswing, at least in established markets. Credit flows for home lending have eased but still not to the levels of pre-Royal Commission times.
Against a backdrop of recovering demand and more ready access to housing credit, both new dwelling approvals and commencements have fallen by around 20 percent since their peak.
Further, Australian Bureau of Statistics (ABS) data from July and August 2019 indicates that dwelling approval numbers are continuing to contract and are now at their lowest monthly levels in seven years - with commencements likely to follow suit.
If the trends continue, the collision between increased demand, increasing pricing and stalled supply will fuel another cycle of diminishing affordability.
Dwellings approvals and commencements continue to trend towards their lowest levels in the last seven years.
As housing demand continues to recover and housing credit begins to once again flow more freely, urgent actions are necessary to reverse the significant decline in new housing supply.

Building a Better Australia.
HOW?
UDIA National applauds the Federal Government’s endeavours to boost confidence in housing markets. Comfort around the policy settings for negative gearing and capital gains tax, a new initiative to help close the deposit gap for first homebuyers, and the commencement of efforts to ease access to housing credit are positive steps.
However, we do view the opportunity for further momentum as both urgent and attainable. Initiatives that cement and extend existing policy goals are promoted in our National Priorities for 2020.
Recommendations
1.
Streamline red and green tape
Using the review of the Environment Protection and Biodiversity Conservation Act to streamline approvals and curb excessive red tape.
2.
Support housing supply
Giving a clear mandate to the National Housing Finance and Investment Corporation (NHFIC) to identify and remove the barriers to efficient housing delivery.
3
Fix planning systems
Offering incentives to the states and territories to streamline and modernise their planning, approvals and zoning systems.
4.
Diversify housing stock
Securing better returns on investment in infrastructure by creating more diverse housing stock.
5.
Integrate policy reform
Integrating a suite of initiatives on infrastructure, population, cities and housing developments underway across government to yield the strongest dividend.
These goals are within reach and will help ensure Australia stays ahead of the curve on fixing housing affordability, and ultimately, building a better Australia.
Latest News
News - complete list
Thursday, 13 February 2020
Uptick in lending needs to be matched with supply
Tuesday, 11 February 2020
Approvals need to keep lifting to satisfy demand
Monday, 3 February 2020
New home loan deposit scheme welcomed
Wednesday, 1 January 2020
Lending panel for deposit scheme welcomed
Thursday, 12 December 2019
Announcing new President for UDIA National - Simon Basheeer
Thursday, 28 November 2019
EPBC Review can fulfil promise of streamlined assessment
Tuesday, 29 October 2019
RBA right to call out risks from sliding housing activity
Thursday, 17 October 2019
Ominous signs as dwelling approvals keep falling
Monday, 9 October 2019
Rate cut needs to be matched by more lending
Tuesday, 1 October 2019
National Population Plan a critical new policy tool
Monday, 23 September 2019
House price data shows recovering a long way off
Tuesday, 17 September 2019
Deposit gap scheme opens the door to home ownership
Wednesday, 12 September 2019
Skills shortage threatens infrastructure delivery and the Australian economy
Friday, 6 September 2019
Dive in dwelling investment hurts economy
Wednesday, 4 September 2019
Keep up reform of building and construction standards
Tuesday, 3 September 2019
Housing approval data rings alarm bells
Saturday, 31 August 2019
Build to rent can help alleviate housing affordability once it is supported by Government policy
Friday, 30 August 2019
Infrastructure Audit a call to action
Tuesday, 13 August 2019
Weak Building Approvals remain an economic drag
Tuesday, 30 July 2019
Further Statement on the building and construction industry
Thursday, 18 July 2019
Statement on the building and construction industry
Monday, 15 July 2019
Soft lending data confirms the case to rev up reforms.
Friday, 12 July 2019
Changes to home loan assessment rules welcomed
Friday, 5 July 2019
Weak building approval figures show need to drive reform
Wednesday, 3 July 2019
Australia's housing market can't become collateral in trade tensions
Saturday, 29 June 2019
New data reinforces need for National Population Plan
Wednesday, 20 June 2019
Wednesday, 20 June 2019
UDIA unveils six-point action plan for Commonwealth Government
Tuesday, 18 June 2019
RBA rate cut to help spur housing recovery
Tuesday, 4 June 2019
UDIA congratulates Labor's Shadow Ministry
Monday, 3 June 2019
Endorsement of Anthony Albanese is welcome news says UDIA
Wednesday, 29 May 2019
New Morrison Ministry is great news for infrastructure and housing
Tuesday, 28 May 2019
Moves to change how home loans are assessed is welcome news
Tuesday, 21 May 2019
Monday, 20 May 2019
Contact Us
If you’d like to find out more about 'Building a Better Australia' contact us.
Urban Development Institute of Australia | Tel: (02) 9262 1214
Find out more about UDIA National - www.udia.com.au