The purpose of this submission is to share Institute of Public Affairs research and analysis with the Productivity Commission as part of its inquiry into housing supply regulation.
This inquiry is primarily aimed at canvassing ideas about increasing market supply of new housing. It is critical that its integrity should not be undermined by a pre-determined and oversimplistic argument that the primary or only solution to housing supply challenges is more high-density housing and urban densification.
Urban densification is not the solution to increasing housing supply. Governments, at both federal and state levels, should instead cut red tape on greenfield residential development, including the removal of energy efficiency and electrification mandates and excessive land use restrictions, while returning the burden of proof for environmental approval processes to opponents of development.
While annual net new housing supply has been stagnant over the last decade, it is important to note that the key driver of the housing imbalance in Australia is rapid migration-led population growth. Amendments to housing regulation, while important, can only be a part of the solution so long as migration is running at consistently elevated levels.
