(Dec 2): Australia could bolster housing supply by almost one million homes through a “gentle density” strategy, a model successfully applied in New Zealand that would help address an accommodation crisis, a new report showed.
If one in four of Australian houses were converted to dual occupancy such as duplexes or low-rise apartments in the nation’s five biggest cities, supply would increase by 9%, CEDA and consultancy Urbis said in the report released Tuesday. About 70% of Australian properties are standalone dwellings.
The push for “gentle density” goes to the heart of a structural imbalance in Australia’s housing market given the population is forecast to climb by more than 50% over the next 40 years. The debate in major cities, among the least dense in the world, tends to focus on the extreme ends of the spectrum for new construction: either inner-city high rises or outer-suburb developments.
Easing zoning rules to allow more duplexes, townhouses and low-rise apartments in established suburbs would unlock well-located land, reduce pressure on fringe development, and expand access to jobs and transport.
“Gentle density can deliver more housing in middle-ring neighbourhoods where people want to live, while making better use of existing infrastructure and transport networks,” said CEDA Senior Economist Danika Adams. She highlighted New Zealand’s largest city as showing “what’s possible when you implement planning reform at scale.”
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Auckland’s overhaul began in 2016 and allowed medium and some higher density housing across around three-quarters of the city, resulting in a 50% increase in building consents. Since then, Auckland has dropped to 16th in a global ranking of housing affordability from seventh in 2018, while Sydney remains second and Melbourne is ninth.
House prices in Auckland are also estimated to be 15% to 27% lower than would otherwise have been the case, according to the report.
Australia’s government aims to deliver 1.2 million new homes by 2029 to help ease the housing shortage.
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