New figures reveal growth in 'gentle density' as industry calls for planning reform
Medium-density housing is gaining ground in several Australian states, with townhouses, duplexes, and terrace homes becoming more common in urban areas, new analysis from the Housing Industry Association (HIA) has found.
Western Australia recorded the largest increase, with a 63% rise in approvals for these projects. South Australia followed with a 36.7% increase, while Queensland saw approvals climb by 26.2%. New South Wales also experienced notable growth, with an 18.8% uplift.
These figures suggest that efforts to encourage a broader mix of housing types are beginning to take effect, particularly in states where policy changes and planning reforms have been implemented. The increases reflect a shift away from the dominance of detached houses and high-rise apartments, as more developers and homebuyers turn to medium-density options to address affordability and supply challenges.
“Australia’s housing crisis won’t be solved without increasing medium density dwellings, particularly in our larger cities,” said Sam Heckel (pictured right), executive director planning at the Housing Industry Association. “‘Gentle density’ projects such as townhouses, duplexes and terrace homes, can deliver more homes faster and at prices people can afford.
“HIA has long argued that increasing housing diversity is essential, however, this missing middle has been progressively hollowed out, with detached homes or apartments dominating much of the new housing stock. Gentle density bridges the divide between these two housing types blending affordability and lower density.”
HIA expects New South Wales to continue to be a standout, with its recently released pattern book of pre-approved housing designs streamlining approvals and cutting red tape.
“By giving builders and landowners pre-endorsed designs, they’re providing the certainty the industry needs to unlock smaller, smarter projects,” Heckel said.
“It’s exactly the sort of practical reform other states should adopt if we’re serious about tackling the housing shortage. With rising building and planning costs for apartments and new greenfield development stalled by infrastructure and environmental barriers, gentle density is a vital solution for governments to meet housing targets.”
Despite the increase in medium-density developments, HIA notes that planning regulations continue to present challenges for smaller-scale projects. A significant portion of residential land remains zoned exclusively for detached houses, and where medium-density options are allowed, they often encounter lengthy approval processes similar to those for larger developments.
“Councils are regularly adding larger setbacks, deep-planting requirements and parking minimums that, while well-intentioned, render many projects commercially unviable.
“HIA is calling on all jurisdictions to review their planning systems and fast-track measures that support gentle density, ensuring more Australians can access well-located, affordable homes sooner,” concluded Mr Heckel.
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