Across the Hunter, our member councils are working hard to enable housing growth, but penalising them for broader market factors out of their control will not build more homes.

We are concerned by the Australian Government’s Productivity Commission interim report, which suggests a “carrot and stick” approach that could financially penalise local governments if housing targets aren’t met.

The reality is that whether new homes are actually built depends on an entire housing system, driven by complex pressures well outside the direct control of local government. These challenges include:

📈 Increasing construction costs, material prices and market uncertainty impacting development feasibility

👷‍♀️ Shortages of skilled trades and workforce capacity needed to deliver new homes

🏘️ The availability of suitable land, including constraints created by biodiversity protection and environmental considerations

📜 Developer decisions about whether projects can proceed based on risk, demand, costs and viability

🚰 The need for investment in enabling infrastructure to support growth, including roads, transport, water, sewer and community facilities

Stripping funding from communities through “sticks” will only hurt local services without laying a single brick.

To read more, visit https://www.pc.gov.au/inquiries-and-research/housing-supply/interim/

Check out our website for more information on our Housing Advocacy Priority https://hunterjo.nsw.gov.au/housing/