Australia needs 90,000 more jobs in the next 90 days to meet the Albanian government’s “impossible” new target of building 1.2 million new homes in five years, the construction industry has warned.
Major construction industry groups have called the federal government’s plan, which would see the country building 60,000 new homes each quarter starting July 1, unrealistic.
The only solution would be for Australia to boost immigration and accelerate the hiring of skilled tradespeople.
Master Builders Australia chief executive Denita Wawn said she was concerned: “there is no way… we can get 90,000 (workers) in three months unless we have a radical change in the way we look at our system migratory”.
An additional 90,000 transactions are required by July 1 if the government is to meet its ambitious target of building 1.2 million homes in five years.
Recognizing professional qualifications from other countries should be easier and cheaper, Ms Wawn said.
“We know that there are a large number of companies in this country that do not have their licenses recognized because it is too expensive and cumbersome for them,” he said in an interview with Sunrise.
“We have to focus on those who are currently in the country because their skills are not recognized.”
Wawn also said a big push is needed to train Australians and encourage them to work in the trade industry.
“We are really focusing on the school levers, but also those who want a career change into trade,” Ms Wawn said.
“Third, as an industry, we must preserve current sectors and bring back those that have decided enough is enough.”
He acknowledged that finding 90,000 transactions in the next 90 days is not realistic.
“I think this figure reflects the difficulties we are going to have if we do not solve the trade shortage by meeting the agreed objective of 1.2 million homes in five years,” he said.
“The clock starts ticking on July 1 and we have a huge problem to solve.”
BuildSkills Australia admitted its target of 90,000 transactions in 90 days is unrealistic
The national housing crisis has led to the rise of prefabricated homes (pictured), which are faster and cheaper to build.
Wawn remains hopeful that the government’s target of 1.2 million new homes by 2029 can be met.
“We need to focus on how we can get there,” he said. “The real question is: how do we encourage more people to join our sector?”
BuildSkills Australia executive director of research and planning Robert Sobyra said finding skilled labor will be the biggest supply-side barrier to addressing the housing supply crisis.
“Returning the housing market to a healthy state will require a significant increase in the national housing completion rate,” he said.
“While there are many obstacles to overcome to achieve this goal, labor will be the biggest supply-side barrier.”
Housing Minister Julie Collins said while the government’s housing target was ambitious, it was moving forward with its work.
“We know we have a lot of work to do,” he told Sky News.
“We’re working across government. I know the skills ministers had a meeting just over two weeks ago where they talked about the skills needed to meet housing demand in Australia and the challenges we currently have.”
Around 60,000 new homes need to be built per quarter to meet the federal government’s target.
An increase in modular housing or prefabricated homes common in Japan and Germany could accelerate housing supply.
Australian property giant Mirvac is among developers trialling modular housing construction in response to the crisis.
“We have been able to reduce the construction of those houses to be watertight within 12 weeks,” Mirvac chief development officer Stuart Penklis told Nine News.
He added that modular homes do not present some of the challenges of traditional construction, such as supply chain shortages and severe weather disruptions.
Minister of Industry and Science Ed Husic added that governments were working together “to seriously look at” modular housing.
“Other countries have got their act together on modular housing and are seeing great jobs and great new homes – we want to be able to do it right here on the ground,” Mr Husic said.
The construction industry hopes to increase its workforce with more skilled immigrants and by attracting school leavers to take up a trade.