Two changes in metropolitan area zoning could increase housing construction by 67,000 new home annually. That’s according to a report recently released by the Grattan Institute.
The report advocates introducing a “low-rise standard”, that is, a right to build up to three storeys on all residential land in the country. Then the proposal is for a “mid-rise standard” of six storeys anywhere that lies within walking distance of a transit hub or commercial centre. They also advocate federal government oversight of state and municipal construction approval processes.
The reforms would lead to an estimated 0.6% increase in housing stock each year. If implemented for a decade, this would reduce the median house price by $100,000 and the estimated reduction in rent would be 12%.
Currently just 44% of Sydney’s housing and 32% of Melbourne’s housing consists of terrace houses, townhouses or apartments.
The Grattan Institute proposal follows the Victorian Labor government’s plans to make Melbourne “the townhouse capital of Australia”. Planning changes that came into effect last month are intended to reduce approval times for lot sub-division to 10 business days. Grattan argues, “Victoria’s Townhouse and Low-Rise Code provides a template for reforms in other states and territories.”
Such shifts are essential, the report argues, because since 2001, the adult population has grown by more each year than has the total stock of housing.
Technically viable it may appear, but such plans do nothing to shift the politics on the issue. Raising density limits continues to be unpopular with those who already own a home.
The dynamic was on display this week, when hundreds turned out to protest against six-storey development at Narrabeen on the Northern Beaches. When housing has become so expensive that it’s everyone’s main investment – with half of metropolitan suburbs having a median house price over $1 million – it’s a brave local member who’ll opt for policy that goes against those interests.
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