Land Prices Identified as Major Driver Behind Housing Affordability Crisis

A growing body of research suggests land costs - not construction costs - are now the largest contributor to Australia’s housing affordability challenges.

Recent industry analysis shows residential land prices have increased dramatically over the past two decades, significantly impacting final home prices for buyers.

While material and labour costs remain elevated, developers and builders argue that planning restrictions, infrastructure charges, and limited land release pipelines are creating structural supply constraints.

Industry leaders say improving land availability could unlock housing supply faster than subsidies or short-term incentives alone.

As governments search for solutions, planning reform and faster land delivery are becoming central themes in housing policy discussions across Australia.