Grattan Institute
banner
grattaninstitute.bsky.social
Grattan Institute
@grattaninstitute.bsky.social
Australia’s leading domestic public policy think tank. Independent analysis on economic reform, budgets, education, health, climate & energy, disability.
11/ Allowing more housing in established suburbs would mean cheaper housing in all suburbs.

Australia needs a housing policy revolution. Our new report shows what form it should take. @brendan-coates.bsky.social @mbowes.bsky.social buff.ly/NfAM6C7
November 5, 2025 at 10:57 PM
10/ Third, the governance of planning systems should be improved, so that restrictive rules that prevent more housing face greater scrutiny.
November 5, 2025 at 10:57 PM
9/ Developments of up to three storeys that meet clear standards should not need a planning permit. Larger developments that meet pre-set criteria should be assessed via ‘deemed-to-comply’ approval pathways.
November 5, 2025 at 10:57 PM
8/ Second, planning application processes should be simplified to offer home builders certainty and reduce costs.
November 5, 2025 at 10:57 PM
7/ In addition, housing developments of six storeys or more should be allowed around more major transit hubs and key commercial centres.

And even higher densities should be allowed in particularly high-demand areas, such as the suburbs surrounding CBDs.
November 5, 2025 at 10:57 PM
6/ First, three-storey townhouses and apartments should be permitted on all residential land in all capital cities.

Making this change would unlock potential for more than one million new homes in Sydney alone.
November 5, 2025 at 10:57 PM
5/ We need more housing where people want to live.

The NSW and Vic gov’ts have made meaningful progress towards allowing more homes on well-located land in our major cities.

But more is needed.
November 5, 2025 at 10:57 PM
4/ Unsurprisingly, our capital cities are among the least dense of their size in the world.
November 5, 2025 at 10:57 PM
3/ About 80% of all residential land within 30km of the centre of Sydney, and 87% in Melbourne, is zoned for housing of three storeys or fewer.

3/4 or more of residential land in Brisbane, Perth, and Adelaide is zoned for two storeys or fewer.
November 5, 2025 at 10:57 PM
2/ But why don’t we have enough homes?

The key problem is that state and territory land-use planning systems say “no” to new housing by default, and “yes” only by exception.
November 5, 2025 at 10:57 PM