Increasing multi unit housing supply

There’s a feature in yesterday’s issue of The Age, The Outer Limits (clever title!), which is the first shot in a new series the newspaper is publishing under the banner, Project Melbourne: Towards a Sustainable City, on the challenges facing Melbourne as it hurtles towards a projected population of seven million sometime around 2050.

One of the key themes developed in the article is the need to increase the proportion of new dwellings constructed within the existing urban fabric rather than on the urban fringe. Another key theme is the need to increase housing affordability across all price segments.

I’m a strong supporter of these priorities. We do need to lessen the constraints on new construction in the suburbs but not, as The Age implies, because sprawl is intrinsically bad – it’s deficiencies are greatly exaggerated. Rather, the key reason is to increase affordability.

Most Melburnites want to live within established areas where they’re closer to everything else that’s going on in the city. They can do their grocery shopping and get their hair done anywhere, but living closer in usually means greater proximity to family, work and major sporting, cultural and entertainment facilities.

Contrary to much of the rhetoric on this issue, most households looking to settle in established areas do not have the option of locating in the buzzy inner city. It’s way too expensive. Redevelopment opportunities are constrained by heritage protection, by high property values, by highly organised resident opposition and by small lot sizes that are difficult to assemble into viable redevelopment opportunities. The inner city is also much smaller than most commentators realise – only 8% of Melbourne’s population live within 5 km of the CBD despite the considerable growth experienced in this region over the last 15-20 years. Read the rest of this entry »