“Few affordable townhouses, terraces and low-rise apartments (missing middle housing) have been constructed. Less than 10 per cent of land in RZ2 areas adjacent centres, identified for medium-density dwellings in 2008, has been developed,” writes planning columnist MIKE QUIRK. 

Encouraging the provision of housing in established areas has been the focus of Canberra’s planning since the early 1990s.

The strategy was adopted to widen housing choice, reduce the level of travel and the environmental impacts of development, to respond to the reduced ability of the ACT government to influence employment location and demographic changes leading to the underutilisation of infrastructure. 

The current policies have been successful in increasing the population in existing areas primarily through the provision of apartments in high accessibility areas including Civic; the Belconnen, Woden and Tuggeranong town centres; along Northbourne Avenue and at Kingston.

However, few affordable townhouses, terraces and low-rise apartments (missing middle housing) have been constructed. Less than 10 per cent of land in RZ2 areas adjacent centres, identified for medium-density dwellings in 2008, has been developed.

The policies were also resulting in redevelopments that did not address the needs of households of various ages, incomes and types especially those with children and of low-to-moderate incomes.

Additionally, many resulted in the loss of vegetation and privacy, solar access, increased stormwater run-off, congestion and parking blight.

Furthermore, the dwellings in most medium-density projects were highly priced as the projects could not provide as many opportunities for construction efficiencies as higher-density projects. This limited the housing options of low-to-middle income households, downsizers and those wishing to age in place.

The Missing Middle Housing Reforms (DPA-04) to the Territory Plan and the Planning (Missing Middle Housing) Amendment Bill 2026, are responses to the deficiencies in the existing redevelopment policies.

They aim to deliver a more diverse range of housing in established areas and improve housing affordability. 

The proposed reforms include an increased ability to unit title/subdivide, reduced parking requirements, increased tree canopy and solar access protections, faster approval times (from reduced appeal rights and the use of design guides and pattern books) and the availability of a lease variation charge discount. The reforms are expected to be approved mid year.

The reforms may result in improvements to housing supply primarily from a greater ability to subdivide, unit title and faster approval times.

Any increase is likely to be modest as housing supply is determined not just by zoning, but the interaction between the cost of finance, labour and materials; design and construction quality; price, land values and household characteristics including age, income, wealth, mobility, ethnicity and size.

Many of the blocks in the RZ1 areas will not be developed because of the siting of the existing dwelling, access and slope issues and preferences of homeowners for a large backyard.

There is considerable uncertainty that upzoning will translate into an increase in the supply of social and affordable housing. A more effective strategy would be to fund and construct well designed, affordable and well-located apartments.

Planning strategy review

In 2028, to implement its commitment to develop a more sustainable, affordable and liveable city, the ACT government should review Canberra’s Planning Strategy.

The timing would allow the interrogation of 2026 Census data and an evaluation of whether the missing-middle reforms are increasing the supply of affordable, environmentally sensitive, well-located and well-designed dwellings.

The review would also explore the link between transport technology (eg, light rail and bus rapid transport) and housing density; the extent to which the existing strategy is reducing travel, producing infrastructure and environmental savings, improving affordability and meeting housing preferences.

It, for example, would investigate if the infrastructure savings from redevelopment are being offset by the the need for major infrastructure augmentation such as the $100m redevelopment of the Garran primary school; if the benefits of reduced habitat loss and lower travel from reduced greenfield development are being offset by the creation of heat islands, vegetation loss, increased congestion and car-dependent development in surrounding NSW.

In regards to affordability, it would consider (a) if increasing the release of sites for additional detached dwellings could improve affordability. Restrictions on the supply of detached dwellings contributed to the 91 per cent increase in the price of separate houses compared to 48 per cent for other dwellings between 2010 and 2024, and (b) if the dispersal of employment and investment in transport infrastructure would increase the number of affordable well-located properties.

Successful city development requires substantial infrastructure funding and the reform of taxation, housing, immigration, labour force, climate and employment location policies. The review provides the context for determining priorities. Will the ACT commit to it?

Mike Quirk is a former NCDC and ACT government planner.