Five of Australia’s capital cities now have median house prices which .

These are Sydney, Melbourne, Canberra, Brisbane and Adelaide.

It’s a confronting milestone. But the more urgent issue isn’t the price tag: it’s what kind of homes we’re building, where they’re being built and who the system leaves behind.

Right now, housing delivery remains fragmented. States announce targets, councils wrangle over zoning and the Commonwealth tries to coordinate from the middle.

But without structural reform and national alignment, we’re building a broken system faster — not a better one.

As economist Chris Richardson observed in the AFR:

“Housing is Australia’s biggest and most costly policy fail… Stamp duties aren’t the dumbest thing we do in housing — our excess planning holds that title.”
(AFR, 27 July 2025).

Fixing this requires more than individual policies. It requires a coordinated, whole-of-government effort. Simple council-by-council rezoning battles or ad hoc state-based incentives will not deliver fair, timely, or lasting outcomes.

Here are five system-level reforms. If implemented together, these can restore public trust, enable housing mobility and rebalance growth for future generations.

1. Unblock the 75,000+ homes already approved — and stalled

In NSW alone, more than 75,000 dwellings have DA approval but remain unbuilt.

Nationally, these ‘phantom approvals’ represent one of the biggest untapped supply pipelines. However, no national body tracks or targets them.

What to do:

• Create a national delivery tracker for approved but unbuilt homes
• Set federal infrastructure co-funding triggers which are tied to completions
• Require all states to audit long-stalled DA sites and report barriers to delivery
• Embed a national “delivery-first” principle in housing agreements, prioritising supply with the shortest lead time. 

Why it matters:

Unlocking even a fraction of this dormant supply could reduce pressure on fringe expansion, deliver housing in better-serviced locations and accelerate time-to-housing without new rezonings.

2. Scale Up the Missing Middle

Detached homes still make up over 60% of new housing. Meanwhile, townhouses, terraces and duplexes remain mired in inconsistent zoning codes, low builder confidence and a lack of nationally supported models.

What to do:

• Expand and nationalise a Medium-Density Housing Design Code, with a pattern-book approach
• Tie Housing Accord and NHFIC financing to missing middle delivery in key zones
• Establish a national pre-approved typology library for use by state agencies, CHPs and SMEs
• Fund capacity-building grants for councils to implement medium-density infill plans.

Why it matters:

Gentle density won’t scale without consistency. A coordinated national approach can reduce duplication, increase confidence and offer communities more diverse and accessible housing choices.

3. Make downsizing a national strategy, not an afterthought

Downsizing can free up large homes, support ageing in place and create more flexible communities.

But incentives vary by state, and the current policy mix actively discourages movement.

What to do:

• Introduce a national downsizing strategy under the National Housing and Homelessness Agreement
• Standardise superannuation contribution rules across states and remove pension penalties
• Fund age-friendly demonstration projects in middle-ring LGAs via NHFIC
• Co-design national “mobility maps” showing where downsizers can move without losing access to services and community.

Why it matters:

Downsizing should be supported, not penalised. A national lens helps align tax, land use, and social policy —and makes housing mobility a realistic choice, not a structural barrier.

4. Rebuild Trust in Apartments and Strata Systems

Apartment construction is essential for infill.

However, negative public perceptions around defects, poor regulation and opaque strata governance undermine confidence nationwide.

What to do:

• Create a national strata transparency framework including minimum disclosure standards
• Fund a shared national Building Quality Register and post-completion inspection regime
• Incentivise states to adopt harmonised licensing, warranty, and developer accountability systems
• Establish an intergovernmental Apartment Quality Taskforce to fast-track best practice reforms.

Why it matters:

Apartment quality should not depend on postcode. National coordination can raise the floor on quality, improve buyer confidence, and ensure that apartment living is a genuine choice—regardless of where you live.

5. Redirect Infrastructure Investment Toward Infill — Not Just Sprawl

Greenfield estates often receive disproportionate infrastructure funding, while established areas expected to accommodate more people face outdated pipes, underserviced parks, and overloaded transport.

What to do:

• Align state and federal infrastructure programs with infill completions, not just rezoning
• Create a national Infill Infrastructure Fund to accelerate upgrades in walkable centres
• Adopt standardised cost-benefit frameworks that factor in public value per dwelling
• Require infrastructure delivery plans for any area receiving fast-tracked housing targets. 

Why it matters:

We need to stop incentivising new suburbs at the expense of existing communities —and ensure that all places doing the heavy lifting of growth receive their fair share of infrastructure investment.

Infill delivery depends on public investment keeping pace with growth.

(opportunities for senior Australians to downsize can help to smaller homes can free up greater housing supply for families)

From Patchwork to System Reform

Australia’s housing policy has long been defined by fragmentation — multiple layers of government, overlapping incentives, and misaligned responsibilities.

But piecemeal delivery won’t solve systemic failure.

A national approach is not just more efficient. It is essential if we want to shift from a system that builds homes by postcode lottery to one that delivers housing security at scale.

These five reforms are not silver bullets. But together, they form the foundation of a smarter, fairer housing system — one capable of meeting our targets without compromising our values or environment.

Because if we don’t change direction now, we won’t just miss our housing goals —
we’ll sprawl our way into a future we can’t sustain.

Melissa Vassiliou is an experienced property and planning professional with a background in land acquisition, housing policy, and urban development. She is the founder of the Greater Western Sydney Advocacy Network (GWSAN), a grassroots initiative focused on equity, place-based planning, and system reform. With over 15 years in government and a passion for shaping fairer, more liveable communities, Melissa brings a unique perspective to the intersection of public land, infrastructure delivery, and housing justice.

Enjoying Sourceable articles? Subscribe for Free and receive daily updates of all articles which are published on our site

Want to grow your sales, reach more new clients and expand your client base across Australia’s design and construction sector?

Advertise on Sourceable and have your business seen by the thousands of architects, engineers, builders/construction contractors, subcontractors/trade contractors, property developers and building industry suppliers who read our stories across the civil, commercial and residential construction sector