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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.
“The availability of skilled tradespeople has worsened across Australia as home building pipelines expand again,” stated HIA Senior Economist, Tom Devitt.
HIA provided comments on the revised methodology for the Australian Apprenticeship Priority List. The Australian Apprenticeship Priority List (AAPL) is an important tool to enable government and industry to focus and prioritise those industries most in need of assistance.
McT Design & Construction was named the 2025 HIA Northern Territory Home of the Year winner for a home featuring luxurious finishes, a thoughtful U-shaped design, smart automation, and seamless blend of style, comfort and practicality.
CWD – Construction With Destiny has been awarded the 2025 HIA Tasmanian Home of the Year for its Nebraska Residence – a coastal sanctuary that blends natural elegance with exceptional craftsmanship.