Getting the housing we want.

• Jane-Frances Kelly
• Grattan Institute

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14 November 2011Contrary to myth and assumption, Australians want a mixture of housing choices – not just detached houses. Many want to live in a semi-detached home or an apartment in locations that are close to family or friends, or to shops.

However, the market does not provide nearly enough of these types of housing where we want them. Developers point to the barriers that prevent them from building in established areas. Residents, denied a real say in how their neighbourhood develops, often feel they have little choice but to oppose all planning applications and all change. State and local governments are caught in the middle, and no one wins.

Meanwhile, the population of our cities continues to grow. More residents face the costs of congestion, high petrol bills, distance from family, friends and jobs. More green space disappears and housing everywhere becomes more expensive. We urgently need a new approach.

With the right policies, there is a great opportunity to break the deadlock so that Australians get the housing they want. This report argues that to achieve a transformation in what we build and where we build it, there need to be new incentives for both communities and developers.

The report recommends piloting Neighbourhood Development Corporations. Some areas would opt to establish these new organisations, which would increase the amount and choice of housing while ensuring that residents have a real say in the future of their neighbourhoods. NDCs would be set up in partnership with industry, local and state governments. They would be independent bodies with real powers over planning and delivery. 

A lot of development, however, happens at small scale, and this includes some of the housing that is most contentious and distressing to residents. A new Small Redevelopment Housing Code would establish clear housing standards and speed planning approval if they were met. In return, the Code would ensure that small developments are well designed and respect the privacy of neighbours and the character of an area.

To get the housing and cities we want, communities need greater control, developers need more certainty, and the conversation about our cities should reflect the real choices we have to make. This report offers a pathway to making change happen.