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Opposing excessive regulations as a major barrier to housing affordability

Published July 27, 2026 at 9:02 PM UTC

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A growing number of economists, developers, and housing advocates argue that Australia's regulatory system has become a primary driver of the housing crisis. They point to studies showing that the average time to gain approval for a new housing project in Sydney or Melbourne exceeds three years—among the longest in the developed world. This delays supply precisely when it is needed most, pushing up prices for everyone. Duplication across three tiers of government is a major culprit: a project may require separate approvals from local councils, state planning authorities, and federal environment agencies, each with different standards and appeal rights. Even after approval, third-party objections can drag projects into tribunals for years. The result is that building a home in Australia now costs 30–40% more than in comparable countries due to regulatory compliance alone, according to some estimates. Environmental and heritage rules, while well-intentioned, are often applied too broadly, blocking development on land that has no genuine ecological value or that is already degraded. Reforms such as 'deemed approvals' for compliant projects, single-window assessment portals, and stricter limits on objection periods could unlock tens of thousands of new homes without compromising core protections. The status quo, critics warn, is pricing an entire generation out of home ownership and deepening the rental crisis. Action is urgently needed to cut red tape and build homes faster.