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{{propApi.successMessage}} {{region}} Change locationNew independent research supports HIA call for lot size reform
New independent research supports HIA call for lot size reform
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"New Australian research has reinforced concerns that minimum lot size requirements, many of which were introduced to address planning challenges from a very different era, continue to hold back housing supply today," said HIA Executive Director Planning & Development, Sam Heckel.
The research paper, What Local Land Use Reform Does, and Doesn't Do, by the e61 Institute and the Centre for International Economics examined planning reforms in Adelaide's City of Campbelltown and found that reducing minimum lot size requirements increased housing approvals by 67 per cent, with the additional supply largely delivered through townhouses and row housing.
"At a time when governments are struggling to meet ambitious housing targets, many planning schemes continue to impose minimum lot size requirements that limit housing supply and housing choice.
"The impact is not just fewer homes. Restrictive lot size controls often prevent the delivery of smaller and more affordable housing options that can provide an entry point into established suburbs for first home buyers, downsizers and key workers."
The findings support HIA's recent Increasing Gentle Density: Unlocking Subdivision report, which identified minimum lot size controls as a major barrier to increasing housing supply and a conservative reduction of minimum lot sizes could reduce the cost of a new home by more than $200,000 through lower land costs alone.
"Large parts of Australian cities remain subject to lot size requirements that no longer reflect modern housing needs.
"Importantly, this new independent research also demonstrates that when planning barriers are removed, industry responds. The issue is often not a lack of industry capacity, but the planning controls that limit what can be built.
“Australia is already projected to fall well short of the National Housing Accord target of 1.2 million homes.
"If governments are serious about improving affordability and increasing supply, they must be prepared to reform outdated planning controls that prevent land from being used more efficiently.
"There is no shortage of reports, reviews and policy proposals recommending greater housing diversity and more efficient use of residential land.
"What is often missing is the urgency required to translate those recommendations into tangible housing outcomes for Australians struggling to find a home." concluded Mr Heckel.
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