The ACT’s lack of housing supply is set to worsen with new analysis from Master Builders ACT (MBA) predicting the Territory will fall 7,100 dwellings short of its National Housing Accord target in the next few years. Despite this, the ACT Government said it’s “committed to improving housing access, affordability and choice”.
The National Housing Accord announced by the Federal Government in 2022 includes delivering one million new homes across the country over the five years from 2024.
MBA data shows between 5,800 and 6,380 dwellings must be built in the ACT each year for the next five years to stay on track.
In the current financial year, the ACT is set to fall short by 3,720 dwellings, and MBA CEO Michael Hopkins said this will lead to a shortage of 7,100 dwellings in the Territory’s share of the one million national target.
However, Mr Hopkins said there is an opportunity to turn the bleak projections around.
The ACT Government’s planning reform project is a chance to put in place housing policies that will meet the needs of current and future Canberrans.
Mr Hopkins shared a list of suggested policies he said will address Canberra’s “chronic” housing shortage if included in the new Territory Plan.
These include allowing dual occupancies and other medium density housing in RZ1 zones, increasing height and medium density limits around centres and public transport nodes, and overhauling third party appeal rights.
“A shortage of housing leads to rapidly escalating house and rental prices, strain on our public and social housing system, and makes it harder to attract skilled workers to meet Canberra’s workforce shortages,” Mr Hopkins said.
“The combination of high interest rates, stagnated land release and 1960s style planning rules have combined to create a housing shortage in Canberra like we’ve never experienced before.”
He said the ACT’s current planning rules “prioritise housing built in the 1960s rather than facilitate redevelopment to keep up with changing demographics, demand for sustainable housing, and our ageing populating”.
Responding to the MBA’s claims, an ACT Government spokesperson said, “there is no doubt that planning reforms are integral to increasing housing supply where people want to live and delivering the government’s objective of gentle urbanism”.
The spokesperson said a “steady and orderly planning reform program” is required, along with an expanded focus on new medium density dwellings.
“A growing city needs a variety of housing choices to meet changing demographic needs,” they said.
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