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July 16, 2026

Zoning Changes Needed to Increase Housing

Zoning Changes Needed to Increase Housing

Zoning Changes Needed to Increase Housing

Changing zoning laws around capital cities could allow the delivery of millions of new homes across Australia.

A new report by YIMBY Melbourne shows that 76% of residential land within 20km of the centre of capital cities is restricted – that is, it caps construction at two storeys, has heritage controls, low-density zoning or a detached-house mandate.

It says Hobart is the most restricted, followed by Adelaide,  Darwin, Perth, Brisbane, Sydney and Canberra. Melbourne is the least restricted.

Report co-author Jonathan O’Brien estimates almost nine million additional homes can be accommodated in capital cities if three-storey townhouses are allowed across residential land.

O’Brien says the Federal Government should consider developing a national density zoning so that there are consistent rules across the states.

He says even with zoning changes, it is possible to retain properties of heritage value and still increase housing density.

“You can keep iconic buildings and simultaneously build new buildings next to them or around them or down the street,” he says.

    Zoning Changes Needed to Increase Housing | Hotspotting - Property Market Insights & Investment Strategies