The Housing Industry Association expressed disappointment that the federal budget missed the opportunity to reinvigorate new home building activity and alleviate the nation’s housing affordability pressures.

HIA senior economist Andrew Harvey says it contained nothing to address the ongoing weakness in residential building.

“At a time when new home building is in decline in virtually every state and territory, the budget has failed to deliver any new measure to reinvigorate the home building sector, despite the sector’s health being absolutely crucial to a healthy domestic economy,” says Harvey.

He did welcome the tight budget retaining its existing commitments to the Housing Affordability Fund and the National Rental Assistance Scheme.

He also welcomed the continued investment in training and skills.

“However, the budget was an opportunity to introduce measures to progress housing supply-side reforms with the states and territories, reduce the excessive tax burden on new housing, and expand and extend existing measures aimed at boosting housing supply,” says Harvey.

“The federal government has now been working with the states and territories on housing supply and affordability reform, through COAG, for two and a half years.

“After such a protracted period it is reasonable to have expected the federal budget to include sensible measures to boost housing supply, for example arrangements to help the states and territories remove residential stamp duties on new housing.

“Without dedicated housing policy measures and housing supply-side reforms the residential building sector will continue to act as a drag on the macro-economy and the nation’s growing housing shortage will continue to place undue pressure on the household budgets of home buyers and renters,” Harvey says.