Building more homes could help ease Australia’s affordability pressures – but the Productivity Commission says regulation is standing in the way.
 
The Commission’s interim report says poorly designed regulation can make new housing slower and more expensive to build, while reducing the types of homes available.
 
It argues that relaxing land-use controls is one of the most important steps governments could take to increase supply.
 
Potential reforms include allowing three-storey developments on most residential land, reducing minimum lot sizes and permitting more apartments in high-demand locations.
 

Faster approvals could also help

The Commission found that complex approval processes can add months or even years to projects.
 
Its proposed approach includes simpler regulation and better coordination between housing and infrastructure.
 
More supply won’t solve affordability overnight, but making it easier to build homes in desirable locations could give buyers more choice over time.
 

Building loans work differently

Construction finance differs from a standard home loan, with funds generally released as building work progresses. Before signing a building contract, it’s worth understanding your borrowing capacity, expected repayments and financial buffer.
 
If you’re planning a new build, get in touch to understand how much you could borrow and how construction finance may work for your project.