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The need for new housing options for certain sectors to be made available has been highlighted by the low level of medium-density building approvals, according to a residential research expert.
CoreLogic’s head of residential research, Eliza Owen, has outlined that Australia is being dogged by a persistent “missing middle” when it comes to property types.
There’s been a pause in new developments providing low-rise and medium-density housing options, such as townhouses and duplexes.
Some definitions of medium density also include low-rise unit builds.
According to Ms Owen, “medium-density housing options can be important for young families who seek a more affordable housing option close to city centres, but require more space than in a unit, or older Australians wishing to downsize in their current area of residence to reduce housing hosts in retirement”.
She pointed out that an average of just 14.9 per cent of dwellings across all 478 Australian regions that had dwellings approved over 2019 were for townhouses, duplexes or in-unit blocks with three storeys or fewer.
Despite this relatively low proportion, it still stands higher than the current stock; ABS data has reported 11.9 per cent of council-approved dwellings are medium density.
As populations continue to converge in metropolitan regions, the researcher said demand for diverse housing options is likely to grow.
It’s especially important considering dwelling prices are expected to continue rising in 2020, with Ms Owen contemplating the resurgence of affordability as an issue for potential buyers.
Ms Owen added: “The development of more medium-density housing in Australia is particularly efficient for infilling major metropolitan areas because it takes advantage of established transport and social infrastructure.”
However, she said that “if development continues to focus on the two extremes of density, metropolitan areas may see an erosion of diverse age and family demographics”.
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