Productivity Commission urges planning reform to boost housing supply

The news: The Australian Productivity Commission has highlighted the need for government regulatory reform to boost supply following its latest report which found that the nation’s affordability crisis is putting homes out of reach for too many people.

The context: The report outlines four principles for a more effective housing regulatory system which includes the adopting a build-first mindset, regulating only where necessary, coordinating housing and infrastructure planning, and simplifying the planning process.

Among its key recommendations, the interim report urges governments to consider broad-based upzoning across cities, including allowing three-storey development on most residential land, reducing minimum lot sizes, expanding mixed residential and commercial zones, and permitting more mid and high-rise apartments in well-serviced areas.

The report also recommends governments better align infrastructure planning with housing objectives, clearly setting out how infrastructure will be funded and delivered alongside land releases, and improve coordination between federal, state and local governments, councils and utility providers.