Peak building and construction industry association Master Builders Australia welcomes the long-awaited interest rate cut by the Reserve Bank of Australia today but warns it's now over to the Federal Government to deliver much needed cost of living and housing relief.
While lower interest rates offer some relief for homeowners and businesses, the fundamental issues driving high housing costs—land shortages, planning delays, workforce shortages, industrial relations and red tape costs—remain unaddressed.
Without further action from the Federal Government to reduce cost pressures facing businesses, particularly in building and construction, the housing and cost of living crises will remain.
Earlier this week, the Productivity Commission released its housing report which showed that addressing woeful productivity levels in the sector need to be addressed.
Construction costs have surged by 40% in the last five years, while residential build times have extended by up to 80% over 15 years.
Master Builders Australia urges governments to act on key Productivity Commission recommendations, including streamlining approvals, reducing regulatory burdens, supporting innovation, and improving workforce flexibility.
Quotes attributable to Master Builders Australia CEO Denita Wawn:
"The RBA's cut is positive news, but interest rates alone is not the silver bullet to fix the housing crisis.
"Without government action, housing affordability and business costs will remain a major challenge.
"The Federal Government must remove barriers to productivity and bring down construction costs to ensure new projects stack up."
