Media release – Master Builders Tasmania, 31 May 2024

High Vis Army needed to deal with high housing demand, yet shrinking supply

Master Builders Tasmania CEO, David Clerk, says this week’s ABS data on building approvals shows that while demand for housing in Tasmania has never been higher, the number of new dwelling approvals is going backwards.

“When it comes to housing in Tasmania, supply and demand are seriously out of whack,” Mr Clerk said.

“Demand is at unprecedented levels.  We have families right around the state wanting to build their dream home and we have the State and Federal Governments desperate to put as many roofs over people’s heads as possible.

“Both the Tasmanian and Australian Governments have policies in place to boost the number of new homes being built in the state.  Under the Australian Government’s National Housing Accord, Tasmania could be expected to build over 25,000 new homes over five years.

“But in spite of that, dwelling approvals are falling.  Yesterday’s ABS figures show that dwelling approvals in the 12 months to April 2024 declined by 12.6 per cent and the problem is expected to get much worse.

“Master Builders is forecasting a 20 per cent drop in new dwelling starts in Tasmania next financial year as a result of higher interest rates and workforce shortages.  Over the next five years we may only build just over half of the 25,000 new homes committed to under the Housing Accord.

“While there are no easy answers to this issue, we know that we’re going to need a bigger workforce.

“Right now there are around 26,000 people in our industry.  We need to increase that to 40,000 to ensure we have the capacity to build the houses we need as well as the roads, commercial facilities and major infrastructure as well.

“That’s why the High Vis Army initiative is so important.  This is a joint initiative of the building and construction sector and the Government, aiming to boost the number of people in the sector.

“It’s vital to increase the building and construction workforce so we make sure that supply can match demand.”