Masses of red tape is killing the home building sector’s ability to construct new houses and urgent reform is needed, including a full review of the national construction code, says Productivity Commission chair Danielle Wood.

Half as many houses are being built per hour worked today compared with 30 years ago and building times have blown out since 2015 because of sluggish approvals, lack of innovation, too many small players, NIMBYism and skills shortages, according to a Productivity Commission report.