A major infrastructure investment is key to improving Australia’s housing supply, according to the Housing Industry Association (HIA).

The HIA is calling on the Federal Government to commit $12 billion in the upcoming Federal Budget for roads, water, and utilities. It says this funding will enable more homes to be built, helping to ease Australia’s ongoing housing shortage.

HIA Managing Director Jocelyn Martin says infrastructure development is essential to unlocking land supply.

“The biggest barrier to housing supply right now is the lack of shovel-ready land,” she says.

“Without essential infrastructure, land can’t be developed, and homes can’t be built.”

“If this investment doesn’t happen, Australia will fall further behind its housing targets, putting more pressure on families and renters through higher prices and worsening housing affordability.”

Martin says Australia needs to build 240,000 homes per year to meet demand but fell short by 60,000 homes last year.

She warns that if developers have to cover infrastructure costs, those expenses will ultimately be passed on to home buyers.