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{{propApi.successMessage}} {{region}} Change locationCapital cities starting to find their missing middle
Capital cities starting to find their missing middle
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“Australia’s housing crisis won’t be solved without increasing medium density dwellings, particularly in our larger cities. ‘Gentle density’ projects such as townhouses, duplexes and terrace homes, can deliver more homes faster and at prices people can afford,” said Sam Heckel, HIA Executive Director Planning.
“HIA has long argued that increasing housing diversity is essential, however, this missing middle has been progressively hollowed out, with detached homes or apartments dominating much of the new housing stock.
“Gentle density bridges the divide between these two housing types blending affordability and lower density.
“The star performers include Western Australia (+63%), South Australia (+36.7%), Queensland (+26.2%) and New South Wales (+18.8%).
“We expect New South Wales to continue to be a standout, with its recently released ‘pattern book’ of pre-approved housing designs streamlining approvals and cutting red tape. By giving builders and landowners pre-endorsed designs, they’re providing the certainty the industry needs to unlock smaller, smarter projects.
“It’s exactly the sort of practical reform other states should adopt if we’re serious about tackling the housing shortage. With rising building and planning costs for apartments and new greenfield development stalled by infrastructure and environmental barriers, gentle density is a vital solution for governments to meet housing targets.
Despite its clear benefits, HIA says planning rules in many regions still make smaller-scale projects unnecessarily difficult. Up to three quarters of residential land is zoned only for single houses, and where gentle-density housing is permitted it often faces the same drawn-out approvals as much more complex and larger projects.
“Councils are regularly adding larger setbacks, deep-planting requirements and parking minimums that, while well-intentioned, render many projects commercially unviable.
“HIA is calling on all jurisdictions to review their planning systems and fast-track measures that support gentle density, ensuring more Australians can access well-located, affordable homes sooner,” concluded Mr Heckel.
Semi-detached approvals, MAT - Comparison
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Renovators and investors boost home building activity
“Home renovation activity nears record high, boosted by rising home prices and low unemployment,” stated Tim Reardon, HIA Chief Economist.
Passage of the Planning Systems Reforms Bill is great news for the housing industry
“Today is a great day for the housing industry in NSW with passage of the Planning System Reforms Bill 2025 through parliament,” said Brad Armitage, HIA NSW Executive Director.
Confirm your DBI eligibility. Don’t wait, act now
Starting 1 July 2026, domestic building insurance (DBI) will only be available through the Building and Plumbing Commission (BPC), which has replaced the VMIA in providing this product.
HIA meets with Homes Tasmania leadership
This morning, HIA, including members of the Tasmanian Regional Executive Committee (REC), met with the Chair and a Director of the Homes Tasmania Board to discuss several matters critical to the future of housing delivery in Tasmania.