Industry body urges planning reforms to boost medium-density housing in established suburbs
The Housing Industry Association (HIA) is advocating for planning reforms to increase medium-density housing in established suburbs, arguing that it could help ease Australia’s housing crisis.
Mike Hermon (pictured above), HIA executive director of planning, said the country’s housing shortage requires a balanced approach that allows for more diverse housing options without significantly altering neighbourhood character.
“Australia’s housing crisis is at a tipping point, and one of the answers lies in embracing gentle density to unlock the missing middle housing solutions,” Hermon said.
The industry group is pushing for zoning changes that would make it easier to develop townhouses, micro-lot homes, and triplexes in areas already well-connected to jobs, transport, and education.
“Gentle density is about building more homes in existing suburbs – close to education facilities, jobs, and transport – while maintaining the charm of our communities,” Hermon said.
HIA argues that current planning laws are too restrictive, often forcing homebuyers to choose between large detached homes on the urban fringe or high-rise apartments. Encouraging mid-sized housing, it says, would provide a more sustainable solution.
“Current zoning laws are outdated and restrictive, often leaving Australians with limited choices between sprawling houses or towering apartment blocks,” the HIA executive said. “Gentle density bridges this gap by supporting middle-ground housing options like townhouses and small-scale apartments.”
The association recently released a report on the benefits of gentle density and is urging state and local governments to adopt policies that support this form of development.
The country is falling behind its housing target, with official government data showing just 171,394 building approvals in 2024 — 29% below the 240,000 needed annually. To meet the 1.2 million-home goal by 2029, approvals must now rise to 276,994 per year.
“Australia needs to build 1.2 million homes over the next five years to meet growing demand,” Hermon said. “Unblocking housing in our existing suburbs is a crucial piece of that puzzle.
“By streamlining approval processes and allowing for more flexible zoning, we can unlock the potential of our existing suburbs alongside greenfield housing and create vibrant, liveable communities for generations to come.”
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