Queensland government launches inquiry into how homes are being built

It’s hoped an inquiry into the state’s building and construction industry will result in improved productivity and a boost to home building. 

Facing a growing shortfall in Australia’s National Housing Accord targets, which aims to see 1.2 million new homes built across the country in five years, the Queensland government has launched an inquiry to address the state’s construction productivity issues.  

The state government released the Terms of Reference for the inquiry, which requires the Queensland Productivity Commission to investigate and report on conditions in the residential and non-residential construction sectors and also examine what factors are affecting productivity within the industry.  

The state government said the country’s housing shortage and its capital investment program, including the delivery of Brisbane 2032 infrastructure, make boosting construction “more important than ever”.  

Under the National Housing Accord targets, Queensland has a 247,000 target to meet the 1.2 million new homes target by 2029.  

According to the Property Council of Australia’s “Smarter Incentives, More Homes” report, 151,000 homes are expected to be built in the state, resulting in a projected shortfall of 96,000.  

Nationally, Australia faces a deficit of 462,000 homes against the goal.  

It also follows the Productivity Commission’s “Housing construction productivity: Can we fix it?” report, which revealed Australia’s residential construction sector currently delivers about half the number of homes per hour worked compared to 1995. 

As part of the inquiry, the commission will go through public consultation with industry bodies, unions, businesses and regulatory bodies.  

The commission is required to deliver a report to the government within six months.   

This is the Queensland government’s latest action to address its housing shortage. The move comes after the Crisafulli government axed stamp duty for first-home buyers purchasing new builds in an effort to incentivise construction – a promise made during David Crisafulli’s 2024 election campaign. 

Queensland minister for housing and public works Sam O’Connor said the inquiry was an important step in cutting red tape that causes delays in housing projects.  

“By launching this inquiry, we’re getting on with the job of making it easier to build in Queensland because the current system isn’t working for builders and it’s certainly not working for the tens of thousands of Queenslanders waiting for a place to call home,” Mr O’Connor said.     

As part of the process, the government announced the appointment of Angela Moody as productivity commissioner and current head of the office of productivity and red tape reduction in Queensland Treasury Dr Karen Hooper has been appointed to the board as a commissioner.  

The Property Council of Australia’s Queensland executive director Jess Caire said the inquiry is a step in the right direction to bolster productivity within the state.  

“This inquiry provides a welcome opportunity for industry to work collaboratively to make generational change, we know we need to attract more trades, and this could be a catalyst in boosting participation in the construction sector,” Ms Caire said. 

“Queensland is already facing a significant housing deficit, and the longer it takes to build a house the more it costs and the wider this deficit grows. 

“The Property Council and its members look forward to contributing to the inquiry and working with Commissioner Moody to arrest Queensland’s falling productivity, which has contributed to a lack of supply across all property types.” 

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