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Industry experts have suggested that strategically developing density housing across more than 1.3 million potential sites nationwide could be integral to easing the worsening housing crisis.
A report titled, The Missing Middle, jointly released by CoreLogic and proptech company Archistar, has identified over 1.3 million potential sites across Australia’s capital cities where over 3 million additional strata units could be constructed, presenting a possible solution that could help to alleviate growing housing pressures.
The analysis showed that Melbourne would account for the most sites, with over 472,000 lots offering the potential to deliver nearly 1.2 million new strata units, followed by Sydney with just under 351,000 sites and the capacity for more than 934,000 new units.
Weighing in on these findings, research director at CoreLogic, Tim Lawless, said that “this analysis isn’t identifying or recommending high-rise apartments as a solution to the housing crisis”, but is instead highlighting “opportunities for low-rise strata units that would typically take the form of townhouses, duplexes or triplexes”.
The analysis excluded high-rise and mixed-use opportunities and gauged that most of the sites were suited for relatively low-density development, with an average of 2.5 units located on each site, ranging from 2.1 dwellings in the ACT to 3.7 dwellings in Darwin.
In this approach, the companies highlighted that a “low-density style of infill development”, such as duplexes, triplexes or townhouses, would be the most appropriate form of strata housing for the bulk of these sites.
Critically, Lawless emphasised that “this style of infill development is often more sympathetic to the local character and tends to encounter less resistance from local residents who are often wary of higher densities”.
Analysis further indicated that more than half (57 per cent) of the potential sites identified are within 2 kilometres of an existing train station, providing essential links for commuters and leveraging the significant capital investments in transport infrastructure.
“Governments are looking for ways to maximise opportunities for new well-located housing with a focus on strategic densification near transport nodes, maximising infill targets and ensuring an equitable supply of affordable housing options,” Lawless said.
Notably, the report also observed that close to 500,000 of these potential units (16 per cent of the projected supply) would be situated on “low complexity” sites without any significant slopes, heritage restrictions, or hazards like bushfires or flooding.
The report noted that developers typically prioritise low-complexity sites because of the decreased costs for site preparation and development approval, resulting in a lower cost profile that makes them quicker to develop upon.
These benefits around low-complexity sites were noted as being important to incentivising development and the delivery of new housing, with Lawless stressing that the national cabinet has its “work cut out for it to deliver on its commitment when it comes to new housing”.
“With a target of 1.2 million new ‘well-located’ homes nationally, all tiers of government are likely to be focused on identifying and fast-tracking strategic development opportunities,” he said.
Co-founder of Archistar, Dr Benjamin Coorey, echoed this sentiment and shared his viewpoint that a focus towards “more diverse, medium-density developments” will provide a “crucial foundation for future planning and policy development across Australia”.
“This research highlights the latent capacity for medium-density housing solutions in urban areas, demonstrating the importance of aligning design innovation with planning frameworks to achieve sustainable growth,” Coorey said.
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