Major government investment to increase house supply

A joint Federal and State Government initiative is set to deliver 4000 new homes in Tasmania. 

Interim Property Council Tasmania executive rirector Michael Kerschbaum said the agreement would deliver real outcomes for Tasmanians struggling to find suitable accommodation. 

“The announcement is focused on one thing that genuinely improves affordability: increasing the supply of homes,” Kerschbaum said. 

More than 2100 homes under the agreement will be allocated for first home buyers, supported by Commonwealth funding for enabling infrastructure that would otherwise delay or prevent development. 

Kerschbaum said targeted investment in infrastructure was critical to turning approvals into completed homes. 

“Too often, projects stall because roads, services and utilities are not in place,” he said. 

“By funding enabling infrastructure upfront, governments can remove major delays and accelerate delivery.” 

Kerschbaum said the announcement demonstrated a welcome, coordinated approach to tackling long‑standing supply challenges. 

“This deal sends a clear signal that both the State and Federal level of government are serious about addressing the structural issues holding back housing supply and therefore affordability,” he said. 

“A coordinated approach across planning, infrastructure and delivery is essential.” 

The Housing Industry Association also welcomed the $165 million agreement to support the delivery of new homes.

HIA managing director Jocelyn Martin said the announcement recognises that increasing housing supply is critical to improving affordability.

“This announcement recognises that the fastest way to help first home buyers is to unlock more housing supply, and that means removing the infrastructure and planning barriers holding projects back,” Martin said.

“Builders often tell us that getting this key ‘last mile’ infrastructure is what holds many projects back from being delivered in a more-timely fashion and this announcement is addressing that.”

Benjamin Price, HIA Tasmania executive director Tasmania, said builders across the state are ready to deliver more homes but continue to face constraints that delay projects and increase costs.

“Any investment that helps unlock land, bring forward essential services and get homes to market sooner will make a real difference for Tasmanian first home buyers and ease broader supply constraints,” Price said.

“Getting the fundamentals right – land, infrastructure and approvals – is the key to improving housing affordability in Tasmania.”