Metropolitan planning governance in relation to affordable housing supply (Investigative Panel)

Summary

This Investigative Panel is jointly funded by Australand and the Residential Development Council (RDC). It will assemble a group of planning experts and policy makers to identify those aspects of the 'planning system' across all Australian jurisdictions that inhibit new housing supply, having regard to the three components of these systems ('governance', 'plan making' and 'development assessment'). It will then identify specific reforms across each of the three system components which may be adopted to significantly enhance supply side responses to demand.


Project Number: 96002
Research Theme: Housing_affordability, Urban_planning_and_development
Project Leader: Spiller, Marcus
Funding Year: 2010
Research Centre: AHURI Limited

Description

Perhaps the most significant issue confronting housing policy makers in Australia is that housing production does not seem to be able to respond to demand spikes caused by population growth or economic cycles (i.e. low 'housing supply elasticity').  

To address this structural problem, some jurisdictions (notably Victoria) have invested in reducing statutory planning blockages and land supply constraints in greenfield areas. However, little has been done to free up housing supply within existing infill or greyfield areas, even though these are expected to provide up to 70 per cent of future housing production as outlined in metropolitan planning strategies.

The infill challenge is particularly difficult. Most of the 'low hanging fruit' in terms of obsolete inner urban industrial land has been taken up. Development of medium/high density housing at scale must now contend with more complex sites within or near established residential areas, where community resistance is high. 

This Investigative Panel will undertake statistical analysis and assemble a group of experts including policy makers to address six questions:

  • What are the different structures and forms of planning governance practiced across Australia? 
  • What are the strengths and weaknesses of these different approaches with regard to housing supply and affordability?
  • What are  the real concerns, in the context of local opposition, to affordable and social housing developments? Can 'design' address these concerns, and what impact do affordable housing developments have upon neighbourhood property values in practice? 
  • How significant is the planning system in affecting supply side elasticity, compared to other factors at play (fiscal policy, skills supply, comparative investment returns etc)?
  • What changes in the planning system are likely to yield the greatest medium term boost to elasticity and output?
  • How might these changes be implemented efficiently and effectively?
Funded by: DPCD logo