To radically boost housing supply, state and territory governments need to undertake significant rezoning of land to allow more homes to be built and at greater density, with access to quality transport infrastructure, according to the Business Council’s new report.
The It’s time to say yes to housing report is targeted at measures to drastically boost housing supply, with part two calling for major changes to zoning laws that block the creation of more homes in areas of housing demand.
The BCA believes zoning reforms are imperative to address housing supply. As it stands, based on current construction rates, Australia will not be able to meet the targeted 1.2 million new dwellings under the ³Ô¹ÏÍøÕ¾ Housing Accord over the next five years.
ABS data for dwelling completions over the 2023-24 financial year shows around 176,000 new dwellings built, falling around 64,000 homes short of what will be needed each year going forward.
The BCA is calling for the following changes:
- An extensive program of land rezoning across major cities and towns, to allow medium and high-density development in the vicinity of infrastructure and services.
- A transparent process for home builders to put forward proposals to boost housing supply, through rezoning, managed by state government.
- Consolidated zoning types that are broad and consistent across entire states, providing clarity for home builders.
Business Council Chief Executive Bran Black said rezoning was a nation-wide problem and significant changes are needed to fix Australia’s housing supply crisis.
“We need state and territory governments to unlock more land for more homes in cities and towns across Australia so we can fix this supply crisis,” Mr Black said.
“These changes need to allow for greater density and height near good transport services, while at the same time protecting the quality of life, green space and heritage of an area.”
Mr Black said states like NSW and Victoria had started addressing zoning issues to unlock more supply and build higher density housing that is needed in metropolitan areas, like Sydney and Melbourne.
“Put simply, we need to build enough homes where people want to live, so until we fix that problem, it will be very hard to hit our housing targets-building a home in the right place is as important as building it at all,” Mr Black said.
“We’ve seen a focus on rezoning across Sydney in areas well-connected to train services and new metros-it’s a good start, but we see so much more to do there to meet demand. The most recent work by the NSW Productivity Commission underscores the need for even more ambition, despite the good reforms so far in NSW.
“South Australia is a good example for consistent zoning, with a single consolidated approach across the state-this makes a big difference when it comes to home builders getting housing projects off the ground.
The BCA’s report will outline specific instances of how rezoning has been, and will continue to be, critical in building homes where people want to live.
Mr Black said that across the Tasman in New Zealand, Auckland is an excellent example of how rezoning changes have been successful in improving supply and ultimately lowering price pressures.
“In 2016, Auckland rezoned about three quarters of residential land, and a massive increase in home building followed-they’ve now shared a report showing that this has contained the cost of housing in the long run, approving affordability, with rents at least 26 per cent below what they would have been without the rezoning, and a stabilisation of long-term dwelling prices” Mr Black said.
