A significant infrastructure investment is critical to unlocking housing supply and ensuring affordability, according to the Housing Industry Association (HIA).

The HIA is urging the Federal Government to allocate $12 billion in the upcoming Federal Budget for roads, water, and utilities. It argues that this funding will facilitate new housing developments, easing supply constraints and stabilising property prices.

HIA Managing Director Jocelyn Martin highlights that insufficient infrastructure is the primary barrier to housing growth.

“The biggest challenge in the housing market today is the lack of shovel-ready land,” she says.

“Without essential infrastructure, land remains undeveloped, preventing new homes from being built.”

Martin warns that failing to invest in infrastructure will push Australia further behind its housing targets, worsening affordability and driving up property prices.

She notes that Australia needs to construct 240,000 homes annually to meet demand but fell short by 60,000 homes last year.

If developers are forced to absorb infrastructure costs, home buyers will ultimately bear the financial burden through higher property prices.