NAB chief calls for urgent housing reforms

Better planning, medium-density housing, and modern construction seen as key fixes

NAB chief calls for urgent housing reforms

A major bank executive has urged policymakers to address critical housing challenges, citing the need for modern construction methods, increased medium-density housing, and improved planning processes.

Speaking about the state of housing in Australia, National Australia Bank (NAB) CEO Andrew Irvine (pictured above) highlighted inefficiencies in construction and planning as key barriers to improving supply.

“I think planning is challenging,” he said. “There are some parts of the country where planning is a little bit easier.”

Irvine suggested that Australia could benefit from adopting construction techniques widely used in some countries.

“We can look at methods of construction and more modularity,” he said. “Countries like Canada… have adopted more modern methods of construction that I think would really be helpful here,” he said.

The NAB chief also pointed to the mismatch in housing types being built, calling for a shift towards medium-density developments, such as low-rise apartments and townhouses, to better meet the needs of younger Australians.

“We don’t have enough of what I would call medium-density housing stock,” Irvine said. “There’s still too much building of traditional single-family dwellings, which of course people do aspire to. But we need housing stock that allows younger Australians to get on the housing ladder as a way to their end home.”

He also emphasised the need for collaboration across all levels of government, including local councils, to resolve housing supply issues. He noted that taxation settings in some jurisdictions require review. 

“If we don’t get the settings right now, this issue will continue to have a disproportionate impact on young and vulnerable Australians,” he said. 

Meanwhile, Irvine expressed cautious optimism about Australia’s economic prospects despite headwinds. 

“The economy is still in reasonable shape with the labour market showing resilience, inflation pressure continuing to gradually ease and growth expected to pick up in 2025,” he said. 

Looking further ahead, the bank executive remained optimistic, citing Australia’s natural resources and geographic advantages.

“There is much-needed light at the end of the tunnel, and beyond that, I remain optimistic for the long term,” Irvine said. “It’s called the lucky country for a reason.”

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