Why housing and infrastructure must be in lockstep
While the national housing construction target dominates headlines, the roads, rail and critical community infrastructure need to be developed on step, peak bodies warn.
AUSTRALIA’S peak property industry body says it is crucial that infrastructure is delivered in step with new housing, following a report revealing a severe workforce shortfall.
Infrastructure Australia’s 2025 Infrastructure Market Capacity Report forecasts a shortage of 141,000 workers to deliver the nation’s five-year Major Public Infrastructure Pipeline.
The labour shortages are projected to surge to 300,000 by 2027.
The projections came after the Major Public Infrastructure Pipeline ballooned $29 billion over the past year to hit $242 billion, the highest level since the agency started tracking nationwide government infrastructure investment five years ago.
Property Council of Australia group executive of policy and advocacy, Matthew Kandelaars, said the workforce shortages are a serious problem for the economy and a significant barrier to meeting housing targets.
“Last-mile infrastructure, such as roads, water, sewerage and electricity is critical to the delivery of
much-needed new homes and logistics hubs that are so important in our everyday lives,” he said.
“Delays in the delivery of these projects create serious bottlenecks for new industrial and housing projects.”
Mr Kandelaars said labour shortages in civil infrastructure affect the whole economy, making it harder to build new homes and logistics hubs.
More investment in training is important but must be backed by skilled migration.
The Property Council welcomed the report’s push for governments to incentivise trials of innovations like prefabrication and modular housing.
Mr Kandelaars said these approaches can help create new homes to a high standard at lower cost, but further thinking is needed.
