The System That Builds Homes Is Broken: And Buyers Are Paying the Price
There is something most people don’t talk about when they say “there aren’t enough homes.” It’s not just that builders aren’t building fast enough. It’s that the entire system around building, the approvals, the regulations, the paperwork, has made it genuinely harder and more expensive to deliver new homes than it was 30 years ago.
The Housing Industry Association (HIA) recently put this on the table in front of a Senate Select Committee. And what they said matters a lot if you’re thinking about buying property in Australia right now.
What the HIA Actually Said
The HIA told the Senate committee one thing loud and clear: housing construction productivity has declined over the past decade.
That doesn’t mean builders are lazy or unskilled. It means the system they’re forced to work inside, layers of planning rules, council approvals, state regulations, and constant code changes, is slowing everything down.
Every approval takes six months instead of two. Extra compliance costs and regulations are added without removing the old one. These things don’t just slow down builders; they reduce the number of homes that actually get built. And that directly affects what you pay as a buyer.
Why Buyers Should Pay Attention
Here’s the simple version of what the HIA is saying:
Less supply = more competition = higher prices.
When the system makes it hard to build, fewer homes come onto the market. That means more buyers chasing fewer properties. That means prices stay high or keep climbing.
The HIA also pointed out something important: Australia’s population is growing fast, and most of that growth is concentrated in a handful of major cities. Sydney. Melbourne. Brisbane. The pressure on housing in these cities is enormous, and without a long-term national plan for where people actually live and work, it’s going to stay that way.
As buyer’s agents, we see this pressure firsthand. Stock moves quickly. Good properties don’t wait around. And buyers who come in unprepared often miss out or overpay.
The Real Problem Isn’t New
This isn’t a new problem. The HIA made a point of saying that the issues around housing productivity have been flagged in review after review for years. But nothing much has changed. What’s been missing isn’t the diagnosis. It’s the action.
Bipartisan political support, long-term planning, infrastructure that gets built before suburbs do, these are the things that would actually make a difference. Until that happens, buyers need to work with the market as it is, not as we’d like it to be.
What This Means for You Right Now
If you’re looking to buy in Western Sydney or anywhere across Australia in 2026, the conditions are not getting dramatically easier any time soon. Supply won’t bounce back overnight. Approvals won’t speed up by next quarter.
What you can control is how prepared you are. That means knowing which suburbs still have room to grow, understanding where infrastructure is actually being planned, and not wasting time on properties that aren’t right for your goals.
Ready to Make Your Move?
The market isn’t waiting. But buying the wrong property is worse than waiting a little longer. Let’s make sure your next move is the right one. D’MANSHA is always here to support and guide you. You can call us on 0406 11 22 44 and book a free consultation. Also, don’t forget to follow us on LinkedIn and Instagram.