HIA Explained: What It Does & Why It Matters

10th February 2025

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Learn what the Housing Industry Association (HIA) does, common misconceptions, contract tips, and upcoming regulations affecting home buyers and builders in Australia.

HIA Explained: What It Does & Why It Matters

If you’re planning to build a home in Australia, you’ve probably heard of the Housing Industry Association (HIA). But what exactly does it do, and why does it matter to you as a home buyer or builder? Many people assume that HIA protects consumers, but the reality is quite different. In this episode of the Home Building Hub podcast, industry experts Colin Bischof and Darren Brennan sit down with Keith Ryan, Executive Director of HIA Victoria, to clear up misconceptions, explain how contracts work, and discuss upcoming regulations that could impact your home-building journey.

What is the HIA and What Does It Do?

HIA (Housing Industry Association) is Australia’s leading industry association representing businesses in the home building sector.

• Who are HIA members? Home builders, contractors, consultants, suppliers, and manufacturers.
• What does HIA do? Supports businesses in delivering high-quality homes efficiently and affordably.
• How does HIA influence home building? Works with government agencies to ensure building regulations are effective and practical.
• How does it help the industry? Advocates for improvements while maintaining affordability for home buyers.

Example: HIA works with builders to ensure construction standards remain practical while lobbying for policy changes that benefit both the industry and home buyers.

Common Misconceptions About HIA

Many home buyers mistakenly believe HIA is a consumer protection agency. However, its primary role is to support and advocate for its members—builders and associated businesses.

• Misconception: HIA is a government agency that protects consumers Reality: HIA is an industry association that represents and supports builders and suppliers
• Misconception: HIA resolves disputes between home buyers and builders Reality: Disputes are handled by Consumer Affairs Victoria (CAV) or the Victorian Building Authority (VBA)
• Misconception: HIA ensures that all building regulations are followed Reality: The VBA enforces compliance with the National Construction Code

How to Best Review a Home Building Contract

Contracts are a vital part of the building process, and home buyers must understand them fully before signing.

• Request a sample contract from the builder before the final signing to review it at your own pace.
• Ensure all agreed details (plans, inclusions, specifications) are clearly documented.
• Review special conditions—some may be unnecessary, while others may be essential.
• Who signs the contract? Only the person whose name is on the property title should sign.
• Seek legal advice from a construction specialist—not all lawyers understand home-building contracts.
• Avoid signing photocopied contracts; only use original or properly issued digital copies.

Key Contract Pitfalls to Avoid

• Misaligned Expectations: Ensure the contract clearly defines your inclusions and upgrades.
• Failure to Lock in Plans: Changing designs post-signing can be expensive.
• Not Reviewing Exclusions: Double-check what's not included in the builder’s scope.
• Misunderstanding Progress Payments: Know when payments are due to avoid delays.

Who to Contact for Help with Building Issues?

If issues arise during construction, knowing the right authority to contact is crucial:

• Consumer Affairs Victoria (CAV) – Handles contract disputes, payments, and general builder-client conflicts.
• Victorian Building Authority (VBA) – Regulates builder licensing and compliance with the National Construction Code.
• HIA Website – Provides resources for understanding home building contracts and ethical builder practices.

Recent & Upcoming Building Regulations

Victoria is set to introduce several key changes in 2025 that will impact both builders and home buyers:

• New Building and Plumbing Commission – Aims to streamline dispute resolution and strengthen regulatory oversight.
• Changes to Domestic Building Insurance – Easier access to claims for defective work.
• Tougher Enforcement on Builders – Builders may be held accountable for post-completion defects.
• National Construction Code 2025 (NCC 2025) – Expected to introduce minor refinements without drastic cost increases like NCC 2022.

Tip: If you're planning to build, consider locking in contracts before new regulations take effect to avoid potential price increases.

The Future of Housing in Victoria

Melbourne’s population is projected to exceed 6 million by 2031, increasing housing demand. Key trends include:

• Increased focus on infill housing – Governments prefer higher-density developments, but demand for detached homes remains high.
• Modular and prefabricated homes – Gaining traction as a faster and potentially more cost-effective building method.
• Skills shortage in construction – More apprentices and skilled tradespeople are needed to support the industry.

According to the Australian Bureau of Statistics, modular homes currently make up less than 10% of the market, but this number is expected to grow significantly in the next decade.

Glossary of Terms

• HIA (Housing Industry Association) – The peak industry body for Australian home builders.
• Consumer Affairs Victoria (CAV) – The government body handling home building disputes.
• Victorian Building Authority (VBA) – Regulates builder licensing and construction compliance.
• Domestic Building Insurance (DBI) – Covers home buyers in case of builder insolvency or major defects.
• National Construction Code (NCC) – The Australian building standard for safety and performance.

Key Takeaways

• HIA supports builders, not home buyers, but sets industry standards.
• Carefully review your contract before signing—don’t rush the process.
• If disputes arise, contact CAV for contract issues and VBA for compliance concerns.
• Regulatory changes are coming in 2025, but they won’t drastically increase costs.
• The future of housing in Victoria will focus on affordability, modular homes, and addressing trade shortages.

Listen to the Full Episode Here:

HIA Explained: What It Does & Why It Matters

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home-building process—completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.

Explore more episodes at Home Building Hub and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.