Melbourne's housing crisis has been a long-standing issue, but a recent study reveals a unique approach to addressing it. The city stands out as the only Australian capital that allows medium-density housing on most residential land, according to a pro-housing collective's zoning study. This study, compiled by the YIMBY group and published online, provides an in-depth analysis of zoning restrictions across Australia's capital cities. Melbourne's housing affordability and zoning flexibility are notable, especially compared to other major cities. The study highlights that 45% of Melbourne's residential sites are less restricted, allowing for more density. This is a stark contrast to other capitals like Hobart, Adelaide, and Darwin, where zoning restrictions are more stringent, with Hobart at 97%, Adelaide at 92%, and Darwin at 88%. The study's co-author, Jonathan O'Brien, emphasizes the impact of these restrictions, stating that they make it illegal to build the homes needed. This is a critical point, as it directly addresses the housing crisis and the need for more affordable and accessible housing. The study also mentions a landmark housing agreement signed by federal, state, and territory governments in 2022-2023, aiming to address the housing crisis by increasing supply. However, the progress towards this target is slow, with only 23% of the target homes built in Victoria, the ACT, and Western Australia. The study provides a comprehensive zoning atlas, allowing for a detailed comparison of zoning restrictions across cities. Melbourne's zoning restrictions are unique, with a focus on heritage protections, which apply to 11% of residential land. This is a significant factor in the city's ability to densify, especially in desirable inner-city areas. The study also highlights the varying degrees of zoning restrictions within cities, such as the widespread two-storey limits in Adelaide and Hobart, and the requirement for detached houses in Brisbane and Darwin. The YIMBY group advocates for making townhouses and mid-rise developments legal across Australia, a proposal supported by the Grattan Institute. This approach could unlock millions of new homes, according to O'Brien. However, the industry's perspective is also considered, with the Property Council's Matthew Kandelaars noting that zoning restrictions are just one of many hurdles. He emphasizes the need for a focus on feasibility challenges, such as financial capacity and skill shortages, rather than solely on zoning reforms. The federal government's recent initiatives to reduce costs and simplify the construction process are seen as positive steps towards addressing these challenges. The study's findings and the industry's perspectives provide a comprehensive overview of the housing crisis and the complex interplay between zoning restrictions, affordability, and the need for more housing supply. It highlights the importance of a multi-faceted approach to addressing the crisis, involving both policy changes and industry collaboration.
