New home construction may be at a decade low, but the Housing Industry Association (HIA) remains optimistic that policy changes can reignite growth and meet national housing targets.

Just 168,050 homes began construction in 2024, well below the annual 250,000 needed to hit the government’s 1.2 million homes goal by 2029. However, HIA Chief Economist Tim Reardon believes the tide can turn with the right reforms. “We’re at the bottom of the cycle, but with the right support and smart policy, the recovery will come,” Mr Reardon said. “Demand remains strong, and we need to ensure the industry is ready when interest rates ease.”

HIA is calling for ‘easy-good’ solutions like waiving mortgage insurance and targeted incentives for first-home buyers to build rather than buy established homes. Long-term reforms around land supply, planning, and infrastructure are also key. Reardon adds, “If sustained, these changes will help ease affordability pressures and unlock future housing supply.”