Despite new home construction falling to a decade low, the Housing Industry Association (HIA) remains confident that strategic policy reforms could revitalise the sector and support Australia’s housing targets.

Presenting potential upside for the residential mortgage lending market.

Only 168,050 homes commenced construction in 2024, significantly below the 250,000 homes per year needed to meet the government’s target of 1.2 million new homes by 2029.

However, HIA Chief Economist Tim Reardon remains optimistic, pointing to strong underlying demand and the likelihood of interest rate relief ahead.

“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 also continues to advocate for structural reforms to land supply, planning frameworks, and infrastructure investment, key factors that influence long-term housing affordability and construction pipeline sustainability.

“If sustained, these changes will help ease affordability pressures and unlock future housing supply,”

Reardon added—highlighting potential opportunities for lenders to align products and services with evolving borrower needs and market conditions.