Reform land-use planning for a better society
The upward pressure on dwelling prices within 150 kilometres of any capital city in Australia, most notably on the coast, and the levels of housing stress and homelessness, are a stark and constant reminder of policy failure. Adding confusion to policy planning is the incorrect conjoining of affordable housing and social housing. We need more affordable housing, not social housing.
We are seeing this play out in Newcastle and the Lower Hunter, which face severe housing shortages.
There is an increased interest in housing in these areas, and a resultant upward pressure on house prices, however, there does not appear to be a corresponding increase in housing supply. The front-page story in The Newcastle Herald on November 14 said it all - "LAND GRAB" - outlining the unprecedented boom in land sales for the region.
Notably the variation in housing prices between Sydney and Newcastle is growing, which makes the Lower Hunter - within that 150 kilometre range - seem more affordable to Sydney buyers.
Development regulations - initially required to overcome urban blight - are now a major limitation on the ability of designers and builders to fit new built form to social functions.
It says much about housing policy in Australia that a book published almost 50 years ago bemoaning zoning restrictions and urban land-use planning regulations is as relevant today as it was on release.
In the early 1970s, the Urban Development Institute of Australia (UDIA) commissioned a report on the consequences of planning standards and their impact on land and housing. That report - published in 1976 as the book A MANSION, or no house - broadly summarises the essential need for land-use planning that grew out of the Industrial Revolution's "dark, satanic mills" and associated housing squalor, and its dramatic expansion to a theology in its own right. Or, as A MANSION, or no house puts it:"From its modest origins as a device for keeping abattoirs out of residential streets, zoning has developed into a complex and esoteric art."
The state government-approved Hunter Regional Plan 2036 is a "20-year blueprint for the future of the Hunter ... centred on a prosperous community, healthy environment and attractive lifestyle choices". The plan's vision is to create a leading regional economy in Australia, with a vibrant metropolitan city at the heart.Four goals will deliver this vision: a leading regional economy in Australia; a biodiversity-rich natural environment; thriving communities; greater housing choice and jobs.
If housing supply is not equal to demand, cashed-up Sydney buyers will chase prices in the Lower Hunter already out of the reach of locals and exacerbate the situation. Restricting access to the market is not the answer. The solution is to provide suitable supply.
Development regulations - initially required to overcome urban blight - are now a major limitation on the ability of designers and builders to fit new built form to social functions.
Development standards seek to prevent the bad but instead increasingly limit innovations and the pursuit of economy. As A MANSION, or no house made clear in the 1970s: "Incentives rather than more restrictive standards are the effective means of achieving better, cheaper, and fairer development."
There is a continued need for direct market intervention, and local government is still the best vehicle if used correctly. Unfortunately, much of the increased cost of suburban life stems from the demands of municipal and other authorities for the "services" associated with a house and land package.
The intentions of these administrators are good, but often misguided, and they put housing beyond the reach of many people whose circumstances would formerly have allowed them to look after themselves. Recent changes to the Exempt and Complying Development Code have started positive growth towards housing diversity within existing suburbs, but significantly greater strides are needed if we are to nurture thriving communities with greater housing choice.
Zoning is the cornerstone of development control. With regulations limiting the options for land-use, buyers are betting on the political process leaving the rules intact. But planning reform is a necessity for a better and more sustainable society. Quality development depends on incentives, not regulations.
Chris McNaughton is a professional surveyor and land economist in Newcastle NSW and the principal of Palmer Bruyn.
Source: https://www.newcastleherald.com.au/story/7014021/reform-land-use-planning-for-a-better-society