A balancing act: Affordable, sustainable, achievable

At TRANSFORM 2025, a panel of national leaders tackled the urgent question: how can we build more homes without compromising on sustainability or locking vulnerable Australians into inefficient, expensive dwellings?
Residential buildings are responsible for around 24% of Australia’s electricity use and more than 10% of our total carbon emissions. Most older homes weren’t built for energy efficiency, which means they’re costly to run and hard to keep comfortable.
At the same time, decades of undersupply and high demand have created a shortfall in housing. Governments have committed to building 1.2 million homes over five years – 240,000 a year. But reaching that target will require us to balance speed with standards, affordability with ambition, and short-term pressure with long-term resilience.

Making Every Building Count

Mike Zorbas, CEO of Property Council of Australia, set the scene with a stark reality: Australia has a “radical housing deficit”, and is now building homes at half the pace of 1995. Productivity must improve – but we must up our game while moving rapidly towards a net zero National Construction Code (NCC).

Th NCC sets national building standards – and its 2022 update lifted NatHERS ratings to a mandatory 7 stars. But not all states have implemented NCC 2022 and the timeline for future updates is uncertain. The Coalition, if elected, has proposed a 10-year freeze on updates.

Mike Zorbas was crystal clear with the TRANSFORM audience. To meet our national emissions reduction targets, “we’ll have to be pretty close to net zero in the Code by 2030”.

The GBCA’s Federal Election Policy Platform calls on the next federal government to “fully fund and resource” the Australian Building Codes Board (ABCB) to improve NCC coordination. The Property Council agrees.

Australia also needs mandatory energy disclosure, more “hip pocket action” from governments, and a bold electrification agenda showcasing demonstration projects, Mike said. “And making sure every building counts.”

Every Building Counts, a joint roadmap from GBCA and the Property Council, finds a national energy efficiency plan could save households and businesses $20 billion in energy costs while avoiding 64 million tonnes of carbon emissions.

So, what is holding us back?

The net zero opportunity

Solutions exist – and some are under construction. Alexander Wendler, CEO of Landcom, spotlighted Panorama, a 5,600-home development in Sydney’s southwest, which includes 10% affordable housing. It’s the first Landcom project to earn a 6 Star Green Star Communities rating.

The Panorama Net Zero Demonstration Home is a test case for affordable, sustainable residential development at scale. Under construction with volume builder McDonald Jones Homes, the home is expected to be completed in late 2025.

“It’s not a high-end product,” Alexander said. “We want to inspire people.” The fully-electric home will feature solar panels, a 10kW battery, EV charger, energy-efficient appliances, and recycled and low-carbon materials throughout.

With an 8.7 Star NatHERS rating and Green Star Homes Certification, it will rank among the highest-rated Green Star homes in NSW. The payoff? Energy bill savings of up to $1,700 a year.

“The biggest problem we have is not that the technology doesn’t exist,” Alexander said. “It’s that the supply chain isn’t robust.” By showing what’s possible – and scalable – Landcom aims to move sustainable homes from niche to norm.

Demand is strong. GBCA’s Rise and Thrive report shows 93% of buyers and 92% of renters consider energy efficiency ratings in their decision-making.

The cost conundrum

Wendy Hayhurst, CEO of the Community Housing Industry Association, noted that community housing is even harder to deliver than private developments. With “razor thin margins” and rents as low as $150 a week, private finance doesn’t stack up – so government investment is essential.

The benefits are clear: lower power bills, healthier homes and reduced public healthcare costs. “People do want to make change,” Wendy said, “but they can’t do it by themselves.”

The Association recently joined ASBEC to forge new partnerships and support upskilling. But her sector manages 132,000 homes – many with “very, very low energy performance standards”. “One of the problems is we don’t measure the energy performance of our homes. This has to change – but we need support,” she said.

Stan Krpan, CEO of Solar Victoria, stressed the need to maintain “critical social licence” through the low-carbon transition. Solar Victoria has helped over 360,000 Victorians install solar panels, proving that when the sustainable option is the easier and cheaper choice, people will take it, he said.

Other government initiatives – like the recent federal and Victorian commitment to upgrade more than 14,000 social housing homes – are also promising. These homes will receive rooftop solar, insulation and electric appliances, improving comfort and slashing bills.

From policy to people

The panel agreed: hitting Australia’s housing targets and climate goals won’t hinge on a single policy lever. It will require regulation, innovation and public investment to align with one clear purpose: better homes for all.

That means holding the line on a stronger national building code. Backing demonstration projects. Uplifting supply chains. And keeping people at the centre of the story. Because this is where the value lies – in more comfortable homes, lower energy bills, and a better future knowing we’ve got the balance right.