When we talk about Australia’s housing crisis, the conversation often zeroes in on skyrocketing prices and insufficient supply. These are undoubtedly critical issues, but they represent just the tip of the iceberg. The broader narrative must recognise that housing is a key lever for the economic, social, and environmental health of our cities.
Urbis spoke to key decision makers from across government, private and not-for-profit sectors as part of our biennial City Leaders Survey on the future of our cities. Unsurprisingly, of all the issues raised in 2024, housing was a pervasive issue across a raft of urban challenges.
Every jurisdiction, both public and private, talked about the housing dilemma our cities and communities face, but the underlying narrative wasn’t just about the well-documented supply, funding, labour market and regulatory barriers that are often cited as the problem.
Instead, housing was described as an enabler of success in so many other areas that matter to us – delivering social outcomes, economic participation and productivity, more environmentally sustainable places, and providing a sense of optimism across our communities.
Since the 2022 survey, our city leaders’ outlook for economic, social, and environmental performance fell due to existing housing challenges. This decline shows just how interconnected housing is with other societal outcomes. It’s clear that without addressing housing, we can’t hope to improve our cities overall wellbeing. Through this lens, housing delivery might well be the vehicle by which Australia arrives at more liveable, globally competitive, and economically productive cities for everyone.
Affordable, well-located housing is not just a social good; it is a powerful economic driver. When people can live close to where they work, workforce mobility increases, productivity rises, and businesses thrive. Conversely, a lack of affordable housing stifles economic expansion and global competitiveness, which depends not only on job opportunities but also on the liveability of a city.
Attracting international talent and investment is crucial for Australia’s future, and housing is a critical factor. Cities that offer affordable, high-quality housing are more likely to attract and retain the skilled workers and investors needed to drive economic growth but lose out when housing costs consume a disproportionate share of wages. This economic bottleneck can be alleviated by ensuring that housing policies are designed to support workforce needs.
Strategic housing placement near transport hubs and infrastructure can boost urban productivity, fostering a more dynamic and resilient economy. This requires a holistic approach to urban design that considers the interplay between housing, transport, and public amenities. By doing so, we can create cities that are not only more productive but also more liveable.
And let’s not forget environmental challenges tied to housing. Sustainable housing solutions are essential to align with Australia’s environmental goals and help cities reduce carbon footprints. This means prioritising energy-efficient buildings and encouraging higher-density living close to public transport centres and places of employment.
Policymakers need to work with industry, and community to develop an integrated response to address the many facets of the housing system. A new paradigm of collaboration is needed to dissolve traditional sector and interest siloes.
Public discourse plays a crucial role in this shift. Media, advocacy groups, and thought leaders must broaden the conversation to highlight forward-thinking solutions and innovations in urban development that are able to meet future challenges.
While it is evident from the survey that city leaders have growing confidence that we are developing the capability and resources to address climate change and technological disruption, there is still a yawning gap in our ability to address housing.
As a nation chasing capacity in more diverse housing, it’s heartening to see the increasing focus on initiatives like the National Agreement on Social Housing & Homelessness (NASHH) and the emerging remit of Housing Australia. Further catalytic funding from state and territory governments combined with development facilitation for well-located housing are important steps toward achieving both short- and long-range housing goals.
But housing is more than just an issue of pricing and supply – policymakers must view housing as a systemic issue that impacts the future competitiveness, equity, and sustainability of Australian cities and understand that solutions for housing will likely bear fruit in all these other domains.
The findings from Urbis’ 2024 City Leaders Survey make it clear: housing is the linchpin for our cities’ future success. Since no single actor has full control, we must all come to the table and explore our part in the solution. It’s time to move beyond the traditional narrow focus on pricing and supply and embrace a broader vision for the future of housing in Australia.