The Albanese government’s recent efforts to restrict net migration are raising concerns within Australia’s housing and construction sectors about the feasibility of meeting ambitious housing targets. Industry leaders warn that delays in skilled worker visa processing and tougher migration policies threaten the government’s five-year plan to build 1.2 million new homes under the Housing Accord.
Jocelyn Marshall, managing director of the Housing Industry Association (HIA), highlighted that visa backlogs are slowing industry progress at a time when skilled trades are in high demand. Marshall cited an example of a Western Australia-based builder who has been waiting more than a year to secure just eight skilled worker visas. She said such delays undermine efforts to address critical workforce shortages and will hinder attempts to resolve housing challenges, particularly in high-demand regions like southeast Queensland.
Last month, the government restructured its visa processing system to deprioritize overseas skilled workers, a move aimed at reducing net migration numbers. Construction industry representatives argue this policy shifts make it increasingly difficult for companies to fill key positions amid ongoing worker shortages.
Queensland exemplifies the growing gap between labour demand and supply. Data from equipment rental marketplace iseekplant shows an expected shortfall of about 18,200 construction workers in the state over the next eight years. Other industry projections suggest the shortage could be significantly higher, with consultancy WJ estimating a deficit of 46,000 skilled construction workers in Queensland by mid-2028, just ahead of the 2032 Brisbane Olympic Games.
Industry bodies emphasize that worker shortages could jeopardize government infrastructure and housing goals. Master Builders Australia (MBA) has called for expanded skilled migration including apprenticeships, viewing this as essential to reducing construction costs and meeting project deadlines. Melissa Bryne, MBA’s national director of policy and legal, described workforce shortages as a “key barrier” to fulfilling housing and infrastructure commitments. She cited current deficits of approximately 300,000 workers in infrastructure and 116,000 in housing nationwide.
The Civil Contractors Federation (CCF) also reports widespread shortages across most states. CEO Nicholas Proud pointed to escalating challenges in Queensland, where the state government is investing $7.1 billion to build and upgrade venues for the upcoming Olympic Games. Proud stressed the importance of multiple strategies, including skilled offshore labour integration, to meet project demands.
Michael Kilgariff, chief executive of Cement Concrete and Aggregates Australia, described shortages in key roles such as drivers at quarries and batching plants as “fairly acute.” Highlighting infrastructure growth in Queensland, South Australia, and Western Australia, Kilgariff noted that labour shortages cannot be easily resolved by domestic workforce mobility alone. He acknowledged that while skilled migration is not the sole answer, it remains a necessary component of a broader workforce strategy.
As the government seeks to balance migration control with infrastructure development priorities, industry leaders advocate for policies that better accommodate bringing in qualified foreign workers to sustain construction activity and support national housing targets.