Australia's housing market struggle tilts towards fresh faces rather than homeowners resistant to change (NIMBYs) following a political shift in the nation.

In a bid to address the escalating housing affordability crisis and homelessness, state governments in Sydney (NSW) and Melbourne (Victoria) are actively intervening in local planning to promote affordable housing.

Sydney's Homelessness Strategy and Planning Reforms

The NSW government has introduced a 10-year homelessness strategy focused on early intervention and the Housing First approach, which prioritizes providing secure housing immediately along with support services. This strategy includes reforms in government intervention, new registries for street sleeping, and targeted programs for vulnerable groups to curb homelessness by 50% by the end of 2025.

At the planning level, NSW has also streamlined approval processes to encourage the supply of multi-unit dwellings, a key affordable housing form, particularly in high-growth corridors around Western Sydney supported by infrastructure investments such as the new airport.

Melbourne's Policy Shifts

In Melbourne, policy shifts include incentives such as stamp duty concessions for strata-titled units and encouragement of higher-density developments. The Victorian state government is promoting compact housing developments recognizing the scarcity of land in urban cores, aligning with national and state commitments to deliver over a million new homes in coming years. There is also an emphasis on collaborative approaches integrating transport (e.g., tram corridors) with affordable housing to enable sustainable growth and net-zero emissions.

Local Residents' Responses

Community resistance often arises due to concerns over increased density, infrastructure strain, and perceived threats to neighborhood character. However, there are calls for more robust community engagement and partnerships early in the planning process to overcome opposition and build inclusive, affordable neighborhoods.

Case Study: Mosman

In Mosman, a suburb known for its mansions and sweeping harbor views, the state government has given the green light to a 22-story apartment building, overriding years-long council opposition. This decision reflects the broader policy shift towards promoting affordable housing and increasing density in key transport and commercial hubs.

Some property owners in Mosman are selling entire blocks to developers to capitalize on demand for higher-density housing. The new planning laws in Sydney aim to allow more housing at these hubs and give the New South Wales state government powers to override council objections to large developments.

Looking Forward

Australian Minister for Housing Clare O'Neil describes 40 years of government regulations as a "wall of bureaucracy" for home builders. With the latest housing push, there is a predicted substantial increase in construction in New South Wales and Victoria from 2026 onward. Construction jobs have already jumped 20% in the three months to May, and construction starts of higher-density homes have risen more than 20% in the first quarter.

As the housing affordability crisis continues to escalate, state intervention is significant and expanding through policy reforms, infrastructure investment, expedited planning approvals, and innovative housing models. The local residents' reactions vary, with some resistance to densification but growing recognition of the need for balanced, well-communicated planning processes to achieve long-term housing affordability and social outcomes.

The Australian Minister for Housing, Clare O'Neil, suggests that four decades of government regulations act as a "wall of bureaucracy" for home builders, implying a shift in focus towards easing regulations for investing in real-estate, particularly in the areas of finance and policy-and-legislation.
Recognizing the scarcity of land in urban cores, the Victorian state government endorses compact housing developments as a key strategy for providing affordable housing, suggesting that politics and general-news are intertwined with the investment and development in real-estate.
In an effort to increase housing supply in key transport and commercial hubs, the New South Wales state government intends to allow more housing density despite local residents' concerns, highlighting the challenges that arise when policy-and-legislation clashes with the community's opinion on real-estate development.

Australia's housing market struggle tilts towards fresh faces rather than homeowners resistant to change (NIMBYs) following a political shift in the nation.