2.2.3  Land use and settlement patterns

Across Australia, metropolitan strategies are advocating for more sustainable growth of our cities to avoid uncontrolled and inefficient urban sprawl.

Greenfield development in 'peri urban' or fringe areas has assisted in improving the supply of housing, but at the expense of increased commuting times for workers. State and local governments have limited capacity to continue to provide new transport and other infrastructure to service these areas. The alternatives of increasing residential density close to employment centres, and improving public transport, provide potential solutions to these problems, but will require ongoing changes in public policy and community attitudes to urban development. In all of Australia's major cities, it is clear that the focus of government plans is shifting more towards urban renewal to accommodate growth. Cities are revitalising entire precincts for a new generation of citizens who favour apartment living close to work, with good transport connections and a high level of urban amenity.

The efficiency benefits of integrating land use and transport can be realised in these urban renewal precincts. Higher density development focused around new public transport infrastructure can optimise public transport patronage, encourage active transport and reduce road congestion as a consequence.

The higher densities and greater housing supply achieved through urban renewal could help to address the undersupply of housing in some Australian cities. Supporting redevelopment with modern infrastructure will be a critical factor in the development of our cities.

Equally, growth in outer urban areas and regional centres will need to be underpinned by investment in infrastructure. Some of these areas face 'catch up' issues, as they struggle with infrastructure backlogs from the past.