Commitment to a big infrastructure spending program will go a long way toward improving Australia’s housing options, according to the Housing Industry Association (HIA).

It says the upcoming Federal Budget needs to commit to a $12 billion infrastructure spend on roads, water, and utilities. This it says, will result in more homes being built, which in turn will ease housing supply issues.

HIA managing director Jocelyn Martin says infrastructure development helps unlock land supply. “Right now, the single biggest obstacle to housing supply is the lack of shovel-ready land,” she says. “Without essential infrastructure in place, land cannot be developed, and homes cannot be built.” “Without this investment, Australia will fall further behind its housing targets, leaving families and renters to bear the brunt of rising prices and worsening affordability.”

Martin says Australia needs to build 240,000 homes a year to keep pace with demand, but last year it fell short by 60,000 homes. She says if developers have to foot the costs of infrastructure, it is home buyers who will end up paying for it.