Builders Say Budget Changes May Not Fix Housing Supply Quickly

Australia’s biggest home builders say the Federal Budget includes some positive housing measures, but they don’t expect it to increase housing supply anytime soon.

The government has announced billions in funding for infrastructure to help unlock new land for housing developments. While builders support the investment, many believe it could still take years before new homes are actually delivered.

Some builders are also concerned about proposed changes to negative gearing and capital gains tax. They say the changes may reduce investor confidence and slow demand for new builds in the short term.

The industry says the housing shortage is being caused by a mix of issues including slow planning approvals, high construction costs, labour shortages and limited land supply. Builders argue that more needs to be done across all levels of government to speed up the process.

There are mixed views on whether the budget changes will improve affordability. Some believe the reforms could help first-home buyers, while others worry fewer investors could place more pressure on the rental market.