Show notes – REVEALED – The Aussie Suburbs with the Lowest Number of New Dwellings – The Hidden Forces Blocking New Homes in High-Demand Locations (Ep. 311)

Show Notes

n this impactful and timely episode of The Property Trio, Dave, Cate, and Mike delve into the critical supply shortfall gripping the Australian housing market. Mike Mortlock brings fresh insights from new MCG Quantity Surveyors research, revealing that hundreds of suburbs nationwide have seen less than 1% growth in housing approvals over the past two years.

These so-called “frozen” suburbs are contributing virtually no new housing stock, despite surging population growth and record migration, highlighting yet another alarming sign that Australia’s housing shortage is worsening.

 

Why Are Some Suburbs ‘Frozen’ for Housing Growth?

The team examines why some high-amenity, high-demand suburbs are seeing almost no growth in new dwellings. Locations like Camberwell North, Glen Waverley-East, Mount Eliza, and Park Orchards are effectively locked down due to:

• Single dwelling covenants
• Bushfire and flood overlays
• Community opposition to change
• Lack of infrastructure to support higher density

 

Australia’s housing shortage – Illustrating the Supply Crisis

Mike’s research paints a stark picture for Australia’s housing shortage:

• Less than 1% growth in new dwelling approvals in many key suburbs
• Building approvals, not completions — meaning the real supply added is even lower
• 168,000 commencements in 2024, falling 30% short of the national 240,000 target
• 650,000 new residents added in 2023, largely due to overseas migration

Barriers to Supply: Taxes, NIMBYism & Red Tape

The Trio lays out the major structural barriers that are stalling housing delivery:

• Development taxes and government levies make up 30–40% of the cost of a new home
• NIMBYism (Not In My Backyard) is blocking density increases, even in areas where it makes sense
• Cumbersome planning systems and appeals processes are clogging up approvals
• High construction costs, materials shortages, and trade constraints continue to drag down feasibility

 

Solutions: How Can We Close the Supply Gap to Improve Australia’s housing shortage?

The conversation offers practical and thought-provoking solutions to combat low supply:

• Planning reform to streamline approvals and reduce delays
• Tax reform to remove unnecessary financial burden on new supply
• Public-private partnerships to fast-track social and build-to-rent housing
• Modular construction and more financing options (like CBA’s prefab lending)
• Cultural shift toward seeing urban density as a positive, not a threat

 

Gold Nuggets

Cate Bakos: If you’re feeling the pinch of NIMBYism, take the time to research local planning rules. Council websites often hold key information about developments and approval pathways.

Mike Mortlock: Community consultation and collaboration are crucial to solve Australia’s housing shortage. It’s time for policymakers to work with the best minds across industry and government to pull every possible lever — not just make headlines.

David Johnston: Governments must examine the taxes they take from new developments and work with councils to cut red tape to improve Australia’s housing shortage. Streamlining processes without sacrificing safety could unlock serious supply.