Development in Australia's Fast-growing Cities, particularly residential and mixed-use development, has been polarised. On the one hand, there are single- or dual-level detached houses on the urban fringes and on the other, tall infill developments such as large apartment blocks.
These two-speed development approaches are happening at scale despite positive regulatory reforms in many jurisdictions to encourage a greater variety of housing choices. There is a need to review the appropriate densities and land use mixes for different parts of our cities.
Multi-unit developments, which are typically much taller than existing residential structures, are also increasingly being built further away from the CBD. Urban Development Institute of Australia data from 2020 shows that in Perth, Melbourne and Sydney, large numbers of substantial multi-storey apartment developments are being built significant distances from the centre of these cities.51 Between 15% and 30% of such developments have occurred within 5 km of their respective city centres.52
There is a clear need to develop more stock in the 'missing middle' of housing development. This presents an opportunity for governments to target the construction of a broader range of residential dwellings to diversify the supply and harmonise with suburbs' existing local character.
Increasing the volume of townhouses, terraces and similar small-footprint developments will diversify dwelling sizes in and around existing urban areas and activity centres, supporting value for money infrastructure, appropriately spaced buildings and ample public spaces.