Melbourne Allows Medium-Density Housing on Most Residential Land, Other Capitals Restrict 74 to 97 Percent

Melbourne permits medium density housing on most of its residential land, the only Australian capital to do so, Abc reported. A zoning atlas compiled by the YIMBY group found 45 percent of Melbourne sites restricted by height caps, heritage rules or low-density zoning. Every other capital restricts between 74 and 97 percent of residential land.

Hobart limits 97 percent of sites, Adelaide 92 percent, Darwin 88 percent, Perth 87 percent, Brisbane 86 percent, Sydney 81 percent and Canberra 74 percent, the atlas showed. Two-storey caps cover nearly all of Hobart and 91 percent of central Adelaide land. Brisbane and Darwin require detached houses on 66 and 73 percent of sites respectively.

The atlas tracks rules for every residential parcel in the eight capitals. A site counts as restricted if capped at two storeys, heritage protected, zoned for detached houses only or otherwise designated low density. Heritage overlays cover 11 percent of Melbourne residential land and 13 percent in Sydney, concentrated in inner suburbs.

Australia's federal, state and territory governments agreed in 2022 and 2023 to a target of 1.2 million new homes over five years from mid-2024. Current trajectories point to roughly one million completions, Abc reported. No jurisdiction meets its individual target.

Victoria and the ACT stand at 23 percent, Western Australia at 22 percent, South Australia at 19 percent, Queensland at 17 percent, New South Wales at 15 percent, Tasmania at 12 percent and the Northern Territory at 5 percent. The ACT reduced its restriction score from 88 to 74 percent through recent Missing Middle rezoning. Victoria improved by three percentage points and New South Wales by two.