<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>You'd imagine that in a country the size of </span><a href="https://www.9news.com.au/australia" rel="" target="" title="Australia"><span>Australia</span></a><span>, finding new land to build homes on would be a cinch - but a new report says it's land prices that are hobbling </span><a href="https://www.9news.com.au/construction" rel="" target="" title="construction"><span>construction</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The HIA-Cotality Residential Land Report found that residential land prices had risen more than 500 per cent since 2000, while construction and skilled labour costs rose 150 per cent in the same period.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Over the last 25 years, the price of the typical new residential lot of land has risen more than three times faster than construction costs," HIA chief economist Tim Reardon said.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/north-ryde-kidnapping-sydney-chris-baghsarian-police/3cb2fb83-2b2b-4eda-b451-4bcb90ef4480" target="_blank"><strong><span>'Grave fears' for Sydney grandfather after 'mistaken identity' kidnapping</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The long-run escalation in housing costs has been driven overwhelmingly by land."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Reardson said the government's method of releasing, servicing, and taxing land had embedded the cost of infrastructure, delays, and planning decisions into land prices.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Those costs are paid upfront, capitalised into land values and ultimately borne by new home buyers," Reardon said.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/land-price-major-obstacle-to-building-new-homes-report-says/18c6cdfd-f1b9-4ff9-935b-db41b698c39f" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>EPSTEIN FILES:</span></strong><span> </span><a href="https://www.9news.com.au/world/epstein-files-prominent-people-list-sent-to-us-congress/49ecc444-8248-4166-845f-ab4d3b9b3207" target="_blank"><strong><span>US officials list hundreds of prominent people named in documents</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The latest HIA-Cotality Residential Land Report, released today, also shows the median price of residential land rose again in the September quarter, reaching a new record high nationally, up more than 10 per cent over the year and growing at around three times the pace of consumer price inflation."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Reardon said the country had lost sight of this "most pressing constraint" on new home construction, given the huge pressure on all sectors since the COVID-19 pandemic.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The shortage of shovel-ready land is central to solving the affordability challenge," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>NATIONAL:</span></strong><span> </span><a href="https://www.9news.com.au/national/heavy-rain-to-soak-multiple-states-northern-australia/730f950c-9898-4e2e-9f07-99bc1cf817ba" target="_blank"><strong><span>Half of Australia set for major soaking, millions warned</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In just the last year, residential lot prices in Brisbane and Perth increased by 18 per cent and 21 per cent respectively, while Adelaide prices jumped a whopping 40 per cent."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Reardon warned that unless the problem was resolved, demand would continue to grow for established housing, pushing prices even further up.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Cotality research director Tim Lawless also said construction costs had grown persistently.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.nine.com.au/sport/nrl/state-of-origin-2027-new-zealand-game-confirmed-auckland-nsw-blues-vs-queensland-maroons-20260216-p5o2j6.html" target="_blank"><strong><span>Huge Origin shake-up announced after Ponga bombshell</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The cost to build a house rose another 1 per cent in the December quarter, pushing building costs more than 30 per cent higher over the past five years," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Lawless said these high costs also contributed to inflation - which, in turn, has triggered the high interest rates bleeding mortgage-holders dry.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The cost of new dwellings purchased by owner-occupiers, which has the largest weight in the CPI calculation, was up three per cent in the December CPI, adding to renewed cost of living pressures," Lawless said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"With land costs and building costs continuing to trend higher, along with high contribution charges and taxes, project feasibility remain a core challenge for builders and developers in delivering desperately needed housing supply."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>