New data reveals infrastructure setbacks are hindering the development of new homes on 33% of residential land across Australia’s major cities.
The Urban Development Institute of Australia (UDIA) has released its 2025 national election platform called Fast Track Housing Delivery, which aims to tackle key housing challenges in the lead up to the federal election.
The move follows building and construction body Master Builders Australia releasing its own platform to address similar issues.
“Australia’s housing markets have been in continuous undersupply for most of the past two decades as we faced crippling issues such as high construction costs, skilled labour shortages, scarce development-ready land, choked infrastructure delivery, high tax burdens and inefficient planning & environmental approval processes,” UDIA national president Col Dutton said.
“Without serious action on housing policy, the Australian parliament runs the risk of locking more Australians out of owning a home.”
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In capital cities, 33% of potential new homes is delayed due to insufficient infrastructure. Picture: Getty
Among the five decisive actions outlined in the platform, a primary focus is to fast-track housing infrastructure.
According to UDIA data, upwards of $16 billion is needed nationwide for enabling infrastructure to facilitate new housing. In capital cities and connected regions, about 33% of potential housing supply is stalled due to inadequate infrastructure, including transport links, electrical systems, roads, pipelines, and parks.
Across Australia, South East Queensland has the highest percentage of housing constrained with 58%, followed by Greater Adelaide with 56%, Greater Sydney with 48%, Greater Perth with 38% and Greater Melbourne with 31%.
The industry body predicted that the problem is “even more widespread” in the greater regions of states.
To support the local and state governments that must largely shoulder the cost of the needed $16 million in infrastructure, UDIA proposes a $5 billion federal government fund to kick-start projects that assist new housing developments. The strategy also includes encouraging industry to apply for government funding, streamlining the process with state and local governments.
UDIA proposes a $5 billion federal fund to initiate projects supporting new housing developments. Picture: Getty
The platform suggests reallocating part of the Housing Accord bonus to directly fund critical infrastructure projects upfront.
UDIA also emphasises the need for stronger collaboration between industry and government to develop homes and necessary infrastructure, addressing labour shortages and capacity issues.
“While we are facing an ever-increasing housing supply gap across the continuum, and considering that 97% of the target relies on private housing providers, it’s clear that now more than ever, Australia’s political leadership needs to ramp up housing delivery with initiatives that not only enable our industry to build affordable and social housing, but also boost supply of median priced housing for all Australians,” Mr Dutton said.
The federal platform outlines also details four additional actions to combat the housing crisis.
- Build the homes we need: Proposes incentives to increase housing for middle Australia, including doubling funding for the First Home Guarantee.
- Release more land supply: Focuses on incentives for development-ready land to halve planning times, unlock surplus government land for new homes, and establish independent housing performance metrics.
- Housing strategies for the environment: Aims to streamline state and federal environmental requirements, incentivise green technology, and align green initiatives and ratings for greenfield and small developers.
- Boosting housing capability: Seeks to reduce property fees and taxes, prioritise skilled migrants for the housing sector, and halt constant changes to the National Construction Code to allow builders to keep up.
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