PC housing reforms won’t solve the supply issue

Australia’s Productivity Commission (PC) is calling for the most sweeping overhaul of housing rules in decades — pushing for three‑storey housing almost everywhere, major reductions in planning restrictions, and faster approvals — arguing that regulatory barriers are a core driver of the housing shortage and worsening affordability.

The PC’s central argument is that Australia cannot meet housing demand without dramatically increasing density and removing regulatory barriers. It argues that current planning systems are fragmented, slow, and overly restrictive, making projects more expensive, slower, and less feasible.

Its key recommendations include: