In Australia, the housing conflict embraces newcomers instead of local opposition groups (NIMBYs) in the latest political shift.

In a significant move to address the growing housing affordability crisis, state governments in Sydney and Melbourne are taking a proactive approach to intervene in local housing developments. Peter Tulip, chief economist at the Centre for Independent Studies, predicts a substantial increase in construction in New South Wales and Victoria from 2026 onward.

This political shift is aimed at boosting supply and addressing affordability crises through coordinated policies and incentives. State governments are supporting infrastructure projects, incentivizing build-to-rent (BTR) developments, and promoting faster construction methods such as modular homes. The National Housing Accord, which mandates building 1.2 million new homes over five years with federal-state-private collaboration, alongside targeted tax and regulatory incentives to encourage development in growth corridors, is a testament to this commitment.

The strategic attempt to overcome local resistance, particularly from wealthier groups and NIMBY (Not In My Backyard) sentiment, is evident in policy measures like amendments to legislation, infrastructure upgrades, and incentives for affordable and Build to Rent housing. For instance, the Victorian government is balancing regulatory concerns with cost pressures on businesses, reflecting political sensitivity to diverse stakeholder interests.

The latest housing push in Australia aims to increase construction of townhouses, terraces, and low-rise residential apartments, which have traditionally faced opposition from councils. This is evident in the changes in planning laws in suburbs like Mosman, where a new metro line in the suburb of Crows Nest has been given the green light for a 22-story apartment building, overriding council opposition. Similar rules to fast-track three-story apartment blocks have been introduced in Melbourne's state of Victoria.

The policy shift is driven by a demand for more affordable housing from younger voters. After the landslide victory in the May federal election, O'Neil is promising "bigger and bolder" housing policies. Building approvals of apartments surged almost 90 percent in the first half of the year, with a 33 percent jump in New South Wales.

However, the reforms have sparked concerns about the potential alteration of the character of suburbs like Mosman. Some Mosman property owners are selling entire blocks to developers to capitalize on the demand for higher-density housing in the harborside suburb. The first application under the new policy is a six-story residential building near the main town center, comprising 29 dwellings, most of which are three-bedroom units, a type that Sydney is lacking.

The new laws allow for more housing at key transport and commercial hubs and give the New South Wales state government powers to override council objections to large developments. Australian Minister for Housing Clare O'Neil describes a "wall of bureaucracy" created by 40 years of government regulations that hinders house building. Research from the Productivity Commission shows that the industry is building half as many homes as it did 30 years ago, due in part to lengthy approval processes.

Construction jobs jumped 20 percent in the three months to May and construction starts of higher-density homes rose more than 20 percent in the first quarter. A productivity roundtable presents an opportunity to remove some of the requirements that have hindered housing construction.

In summary, the current political and policy environment in Sydney and Melbourne reflects a significant move toward state-led facilitation of housing development to overcome traditional local opposition, especially from wealthier groups, contributing to a gradual but meaningful shift in the housing market landscape.

Thepolicy shift in Sydney and Melbourne, driven by political sensitivities to diverse stakeholder interests, aims to boost supply and address affordability crises through coordinated policies, incentives, and infrastructure projects, such as the National Housing Accord and faster construction methods like modular homes.
State governments are taking proactive steps, including supporting BTR developments, amendments to legislation, infrastructure upgrades, and incentives for affordable housing, to overcome local resistance and the NIMBY sentiment, taking examples like the changes in planning laws in suburbs like Mosman.
As a result of the policy changes, the demand for more affordable housing from younger voters, with a surge in building approvals, construction jobs, and starts of higher-density homes, the character of suburbs like Mosman may be altered, raising concerns and leading to property owners selling entire blocks to developers.

In Australia, the housing conflict embraces newcomers instead of local opposition groups (NIMBYs) in the latest political shift.