A groundbreaking proposal from one of Australia's leading policy think tanks could revolutionise the housing market, making homes significantly more affordable for aspiring buyers.
The Grattan Institute has unveiled an ambitious plan that would see house prices drop by up to $100,000 in major cities through strategic increases in townhouse and apartment development.
The Urban Density Solution
According to the institute's comprehensive research, the key to solving Australia's housing crisis lies in embracing medium-density housing in well-located suburbs. The plan focuses on transforming underutilised urban areas while preserving the character of existing neighbourhoods.
"We're not talking about turning Melbourne and Sydney into Manhattan," explains the report's lead author. "This is about sensible, strategic infill development that adds housing supply where people actually want to live."
How the Numbers Stack Up
The economic modelling behind the proposal is compelling. By increasing medium-density housing options in prime locations, the institute projects:
- House price reductions of approximately $100,000 over a decade
- Increased housing supply without urban sprawl
- Better access to employment hubs and public transport
- Preservation of green spaces and community character
Overcoming Political Hurdles
The plan acknowledges the political challenges of reforming planning laws and addressing community concerns about development. However, researchers argue that the benefits far outweigh the obstacles.
"Current planning restrictions are effectively locking an entire generation out of home ownership," the report states. "By embracing smarter development, we can create more liveable, sustainable cities while making housing affordable again."
The proposal comes as housing affordability reaches crisis levels across Australian capital cities, with many young Australians abandoning dreams of home ownership entirely.
