Medium density housing could be the key to resolving Australia’s housing crisis, according to Compare the Market property expert, Andrew Winter.
When someone says, “think of a home” what comes to mind? A weatherboard Queenslander with a white picket fence on a quarter acre block? A Federation bungalow brimming with charm?
As Australia grows, the way we picture property is changing and size isn’t all that matters. We need more units and townhouses in places that are convenient and close to our cities.
The shortage of housing stock is a significant issue across Australia, particularly in our major cities, which are experiencing record population growth.
Finding a place to live—whether renting or buying—has become increasingly unaffordable and challenging.
Now the Not in My Backyard (NIMBY) movement has been outvoiced by a wave of aspiring buyers chanting ‘yes’.
While sceptics might face some initial adjustments, medium density housing undeniably offers a viable solution to the nation’s housing crisis.
What is medium density housing and why the resistance?
Medium-density housing includes townhouses, row homes, and walk-up apartment buildings.
Those who oppose medium density often reside in low-density properties, such as standalone houses with backyards.
According to a Compare the Market survey 77.8% of Australians favoured the suburbs over city or central living.
The top reason why people said they preferred the suburbs is because they thought it was quieter and more relaxing.
This was followed by people thinking the ‘burbs are cleaner and safer compared to the city and central living.
The debate over medium density has persisted for decades. Some argue that such developments negatively impact a neighbourhood’s character, but this is not a universally held view.
Regardless of opinions, Australians can all agree on the fact we need a solution to fix the crippling housing crisis. We need to stop being sizeist and see that the only way to make housing more affordable is to embrace smaller property options.
Is government inaction to blame for Australia’s housing crisis?
The Australian government plans to build 1.2 million new homes within five years to address the housing crisis. However, a skills shortage, inflation and declining council approvals could make us fall short of this target.
Recent data from the Australian Bureau of Statistics (ABS) showed a 0.3% drop in approvals in April, down to a seasonally adjusted figure of 13,078.
We need councils to start listening to government directives on housing because these directives only work if everyone plays ball.
But approvals aren’t the only issue. We know a substantial amount of already approved housing remains unbuilt as developers wait for the most profitable moment to start construction.
Meanwhile, banks have become cautious about lending to builders. Over 2,300 Australian construction firms have collapsed during the past year.
The high number of bankruptcies has deterred people from buying off the plan, which developers often rely on to begin construction. The housing crisis results from multiple interconnected factors, rather than a single cause.
What can be done to fix this?
To meet the demand for more medium-density housing, state and local governments must collaborate better and revise planning rules that restrict medium-density development in Australia’s capital cities.
They also need to engage with communities about potential changes and communicate the benefits of diverse housing options.
Moreover, governments must invest in infrastructure to support growing populations, including parks, schools, and public transport. Ensuring that a portion of medium and high-density housing is affordable and built to high standards is crucial for buyers and renters alike.
We also need a better mix of commercial spaces, for cafes, retailers and gyms to usher in gentrification. Smaller housing should not be seen as the slums of the future but a chance for an exciting and vibrant community to thrive.
So, the next time you see a development application in your area, resist the urge to panic. Instead – rejoice! The new unit block down the road could be a fantastic steppingstone for the next generation.
