Jackson complained that even she, as a state minister for housing, felt the “complex and cumbersome” planning system was a barrier to government efforts to deliver social and affordable housing.

International economic institutions agree. The International Monetary Fund and the Organisation for Co-operation and Development have both blamed restrictive planning rules for constraining housing supply and pushing up prices and rents in Australia. In 2021, the IMF urged federal and state governments to offer financial incentives to local governments to streamline zoning regulations in a bid to increase the supply of housing.

Loading

Current planning and zoning settings encourage urban sprawl, which makes our cities less vibrant and productive. The need for greater housing density is most pronounced in the well-located “inner ring” neighbourhoods of our capital cities.

A NSW Productivity Commission report published last year found housing affordability “would benefit from increasing density in places where more people want to live”.

Polarised debate

The best ways to improve housing affordability are politically fraught. That’s one reason the problem has become so entrenched; for decades governments of both political stripes have avoided effective policies to improve affordability fearing a backlash. The housing sector is also marked by powerful interests keen to influence new policies.

“Whenever you start to see a shift on a policy issue, you see more intense polarisation,” says Brendan Coates, economic policy program director at the Grattan Institute.

“I think we’re seeing it now with state governments, particularly NSW, which are actually making moves towards getting more housing built by reforming land use planning rules.”

Some councils are pushing back as residents raise fears about how their neighbourhoods will change if housing densities increase.

But Coates says there is a “surprising” level of political consensus about the need to take action to relax planning rules in a bid to boost housing supply.

“What governments need to do now is follow through on what we know will work, not throw out the evidence book,” he says.

Read More: World News | Entertainment News | Celeb News
SMH

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Jets’ Joe Douglas Admits to $15 Million ‘Mistake’ in Free Agency

Getty New York Jets general manager Joe Douglas reacting in the middle…

Browns QB Joe Flacco Makes Final Call on Future

Getty Images Browns pending free agent quarterback Joe Flacco will play next…

NHL Best Bets: Erik Karlsson Tops Our AI-Powered Picks for March 26

Getty Erik Karlsson and Pierre-Olivier Joseph, Pittsburgh Penguins Some of the NHL’s…