Australia's housing crisis is being prolonged by a regulatory system that has become too complex and slow, say skeptics who argue that the rules are often redundant and disproportionate. They warn that without significant deregulation, the country will never build enough homes to meet demand.
The problem starts with zoning. Many suburbs are locked into low-density development, preventing apartment blocks or townhouses that could quickly add supply. Changing a zoning code can take years. Even when zoning is permissive, overlapping requirements from multiple agencies—such as heritage overlay, bushfire management, and water runoff—can add hundreds of thousands of dollars to a project's cost.
Builder groups point to international comparisons. In Texas or Japan, streamlined approvals allow homes to be built in months, not years. Australia's system, by contrast, is among the slowest in the OECD. The cost of compliance has been estimated at up to 30% of a new home's price in some areas.
The impact falls hardest on young families and lower-income renters. As supply lags, prices rise, pushing homeownership further out of reach. Developers pass on approval costs, and uncertainty leads to project cancellations. The ultimate risk is a generation locked out of secure housing.
Proponents of reform argue that many existing rules could be replaced with performance-based standards. For example, instead of prescriptive design codes, regulators could set outcomes like energy efficiency levels and let builders innovate. Similarly, fast-track approvals for projects that meet pre-approved designs would slash delays without sacrificing safety.
Environmental and heritage concerns are valid, but they must be balanced against the social cost of unaffordable housing. Blanket protections that block all development in entire suburbs are not proportional. The status quo is failing Australians who cannot find a home.
What to watch next: Several state governments are trialing 'planning reform bills' to reduce red tape. If successful, these could serve as models nationally. The challenge will be maintaining quality while cutting unnecessary barriers.