PT Blink’s Post

Why Builders Aren’t Building In Australia & Why The Housing Crisis Will Get Worse? Home builders and property developers thrive on creating new homes for Australians. When they decide not to build, it raises significant questions. Recently, AVJennings abandoned a major housing development in Brisbane's northern suburbs. This project, which would have added 3,500 homes to a high-demand market, was deemed non-viable due to massive cost escalations, infrastructure charges, and council delays. Discussions with developers reveal that the cost of creating large residential projects is so high that it's not financially feasible. This contributes to the core problems in the housing industry: shortages, affordability issues, and rental crises, driven by political decisions. Tony’s Summary: In a market with high demand and severe housing shortages, it's puzzling when builders abandon major projects. The decision by AVJennings to halt a 3,500-home development near Brisbane highlights the unsustainable costs driven by infrastructure charges, council delays, and new construction codes. This situation underscores the broader issues of dwelling shortages, affordability, and rental crises, which are exacerbated by political decisions. Developers face financial impracticalities in proceeding with large projects, leading to significant repercussions for the housing market. I think this housing crisis and rental crisis will be with us for a few more year yet which spells opportunity for property investors. Learn More Book A Call With Tony https://lnkd.in/gcXVrnsi

🚧 𝐁𝐨𝐨𝐬𝐭𝐢𝐧𝐠 𝐇𝐨𝐮𝐬𝐢𝐧𝐠 𝐒𝐮𝐩𝐩𝐥𝐲: 𝐀 𝐒𝐭𝐞𝐩 𝐅𝐨𝐫𝐰𝐚𝐫𝐝 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐂𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 🚧 The Coalition recently proposed a $5 billion infrastructure package aimed at accelerating home building across Australia. Key Takeaways: 1️⃣ Infrastructure Investment: This funding directly addresses the bottlenecks that our builders face, enabling project delivery and ultimately increasing housing supply. 2️⃣ Stability in Regulations: The proposed pause on future changes to the National Construction Code (NCC) offers much-needed certainty, allowing builders to focus on delivering quality homes without the burden of constant regulatory changes. 3️⃣ Reducing Red Tape: By alleviating bureaucratic hurdles, we can enhance productivity sector, which is vital for meeting the growing demand for housing. While this announcement is just one step towards addressing Australia's significant housing shortages, it's a positive move towards making the dream of home ownership a reality for more Australians. 🤝 Housing Industry Association (HIA) #Construction #Housing #TrustInConstruction

This article deftly describes the headwinds facing construction of new multi-family housing in Massachusetts right now. While important steps are being taken to zone more sites for multi-family housing, the significant barriers of financing and high construction costs have to be addressed as well in order for many of the stalled projects to move forward and address the Commonwealth's rising housing needs. https://lnkd.in/dw9wV8Up

In a frank, and subsequently disheartening, report, RBC's Robert Hogue outlines seven major factors that must be considered if the country is serious about tackling its housing crisis. RESCON | RBC | #realestate #realestatenews #housing #construction https://lnkd.in/gwXSRMnt

A report commissioned by organizations representing Ontario’s developers and builders argues provincial authorities are overstating the amount of shovel-ready land - by almost one million housing units - fuelling a misconception the industry is “sitting on lots.” #investmentrealestate #investment #residentialproperty #housing

Here is what baffles me every time someone talks about an ageing workforce in construction. They always quote statistics like the one in this article: "One in five construction workers are at or will reach retirement age within the next 10 years." So, that equates to 20% of the workforce retiring in the next 10 years. The baffling part is that you would expect the base rate to be MUCH higher than that. For example, if the average career length is 40 years (a generous assumption), you would expect 1/4 (25%) of the workforce to retire every 10 years. So, if only 20% are retiring in the next 10 years, doesn't that indicate that the workforce is relatively young? In other words, 20% is a big number only because 10 years is a long time! My suspicion is that these numbers are somehow underestimating the percentage of the workforce that will be retiring in the next 10 years. With the baby boomer generation retiring, you would expect the retirement rate to be higher than the base rate, which would mean something like 30% of the workforce, not 20%. #construction #housing #realestatedevelopment

This is part of the solution agreed. The only way to get construction costs and labour force able, is MMC. We need to not only address planning approvals and the vast complexity around them but we must take on MMC and reduce the labour component on site radically. It’s time to wake up to the future in this country and fully embrace the concept and vastly improved methodology of MMC. We are still so far behind and so risk averse. We must embrace greater risk to solve this huge issue. #affordablehousing #MMC #modularconstruction

This is a pretty long article that starts by revealing for the first time the correlation between GDP and private completions over the past 20 years. (It’s pretty close). Better not to promise 300,000 homes a year by fixing planning. Better to fix planning with the aim of building infrastructure and just zoning for homes. Better to have a ‘bottom up’ plan to build affordable homes. Better if big builders copy twice as big Vistry and build similar partnership models. The https://lnkd.in/gn8yixvG

Ontario’s housing starts are facing potential setbacks due to regulatory and financial constraints, according to RESCON. These challenges could impact the supply of new homes, creating additional pressure in an already competitive market. As a private lender, I see this as a crucial time for alternative financing solutions that can support developers and buyers in keeping projects on track, despite these headwinds. Staying agile in this climate is key for all stakeholders in Ontario’s housing market. Read more: Ontario's Housing Starts in Jeopardy. https://lnkd.in/eeV2rcDB

Given the housing supply crisis we are in here in NSW it’s good to see Chris Minns exploring more options. The biggest constraint on housing is feasibility. Developers won’t build homes if they will lose money and the private sector needs to build 97% of our housing stock. Improving the time spent in the planning system can improve feasibility. Holding costs have to be factored into any development so the faster projects move through the whole planning system (not just to DA approval but to actually completion) the less costs have to be passed on to home buyers. The real challenge for the NSW Government is to recognise where the more feasible projects are and invest to bring these on faster. While policies to improve density are important, in the current economic environment greenfield development will need to do more of the heavy lifting. If it doesn’t we will just keep falling behind our housing accord targets.