A new report has exposed a major challenge facing Queensland’s housing market, with the Real Estate Institute of Queensland (REIQ) warning that serious inefficiencies in the state’s construction sector have cost tens of thousands of homes.
The Queensland Productivity Commission’s interim Construction Productivity report, released Thursday, has highlighted what the REIQ describes as a systemic issue that is fuelling the housing crisis.
According to the commission, productivity in Queensland’s construction industry has declined by 9% since 2018 – a significant downturn that equates to the loss of approximately 77,000 potential dwellings. These unrealised homes could have accommodated roughly 193,000 Queenslanders – about the same as Toowoomba’s population.
REIQ chief executive Antonia Mercorella (pictured) said the report underscored a long-standing concern for the sector. “In the midst of a housing crisis, these unrealised homes represent more than just a missed economic opportunity – they’re a lost lifeline for around 193,000 Queenslanders,” she said.
“This report confirms what those in the industry have long known – Queensland’s construction productivity problem is systemic, and it’s contributing to our housing crisis.”
Mercorella described the loss of 77,000 homes due to inefficiencies and delays as “senseless.” The REIQ has backed the commission’s recommendations, which include reforms to approvals processes, streamlined regulation, and greater support for innovative solutions such as prefabricated and modular construction – all of which the REIQ advocated in its submission to the inquiry.
“We’re encouraged to see the commission recognising the drag that planning and regulatory burdens have placed on housing delivery,” she said. “When it takes more time, more paperwork, and more labour to deliver the same outcome, it’s no wonder Queensland is struggling to meet its housing needs.”
The commission also found that had Best Practice Industry Conditions (BPICs) not been paused and remained in place through to 2029-30, the net cost to the sector could have reached $20.6 billion, along with an additional loss of 26,500 homes.
The REIQ is also calling for changes to government procurement processes and a modernisation of occupational licensing frameworks to boost productivity.
Mercorella urged swift action, warning, “We cannot afford to keep kicking the can down the road. Productivity gains don’t just improve efficiency, they’re key to making sure every potential and precious home is delivered.”
With a Productivity Roundtable set for August, the REIQ is calling on the Queensland Government to act on the Commission’s findings and “restore confidence, cut waste, and get Queensland building again.”
What do you think Queensland needs to fix first to get more homes built faster? Share your insights in the comments below.
