A recent study conducted by CoreLogic and Archistar revealed Australia’s capital cities could accommodate over 3 million new strata units, offering a medium-density solution to the nation’s housing crisis.
The report analysed 1.3 million urban sites suitable for low-rise strata development. Of these, nearly 500,000 units could be built on “low complexity” sites without issues such as steep slopes, heritage overlays, or environmental hazards.
These developments, averaging just 2.5 units per site, focus on townhouses, duplexes, and triplexes rather than high-rise apartments.
Melbourne emerged as the city with the greatest potential, with more than 472,000 lots capable of delivering almost 1.2 million new units. Sydney followed closely, with nearly 351,000 sites and a potential for more than 934,000 units.
The study, titled “The Missing Middle: The Greatest Opportunity for Medium-Density Development”, emphasised opportunities near transport hubs. More than 57% of identified sites are within 2km of a train station, ensuring critical commuter access and leveraging existing transport infrastructure.
The report highlighted medium-density development as a practical and community-friendly alternative to high-rise apartments.
“This style of infill development is often more sympathetic to the local character and tends to encounter less resistance from local residents who are often wary of higher densities,” said Tim Lawless (pictured above), CoreLogic’s research director.
“This research highlights the latent capacity for medium-density housing solutions in urban areas, demonstrating the importance of aligning design innovation with planning frameworks to achieve sustainable growth,” said Archistar co-founder Benjamin Coorey.
The findings highlighted the need for strategic planning to maximise underutilised urban land.
“The National Housing Accord’s target of 1.2 million new homes depends on identifying and fast-tracking strategic opportunities,” Lawless said.
By focusing on medium-density developments, the CoreLogic-Archistar report underscores a pathway to addressing housing shortages while preserving urban character and improving affordability.
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