Study reveals Aussie suburbs with the lowest levels of housing approvals over two years

News.com.au

25-04-2025

They are the suburbs where residents love to say 'Not In My Back Yard'.
As Australia remains crippled by a national housing crisis, in which we are crying out for hundreds of thousands of new homes to be built, new research has uncovered the areas where residents and councils are standing in the way.
According to ABS data, the nation commenced work on just over 168,000 homes in 2024.
It was a 3000 property increase from 2023, but still fell 72,000 short of the 240,000 annual builds needed to reach the National Housing Accord's 1.2 million new homes target by 2029.
A study by MCG Quantity Surveyors looked at building approvals over the past two years and
discovered that in the 24 months to January 2025, only 337,564 dwelling units were approved nationally.
Digging deeper, MCG pinpointed the specific areas with the lowest building approvals over that period. The suburbs identified had less than 5000 building approvals, coupled with less than a 1 per cent increase in housing stock.
QUEENSLAND
Queensland is facing a critical shortage of homes in 65 suburbs marked as hotspots of NIMBY resistance, with virtually no new dwelling approvals despite growing demand and rising property prices.
The analysis revealed 'an entrenched pattern of underdevelopment' across some of Brisbane's most established inner and middle-ring suburbs, intensifying the state's affordability crisis as families compete for a limited supply of new homes.
SOUTH AUSTRALIA
South Australia was found to have 15 key locations marked as NIMBY hotspots.
These locations included some of Adelaide's most established suburbs.
'Australia's housing market faces significant pressure due to surging population growth, heightened demand, and an alarmingly low rate of new dwelling approvals,' MCG Quantity Surveyors managing director Mike Mortlock said.
'While many regions grapple with meeting housing demand, certain suburb areas stand out starkly as hotspots of resistance to new developments.'
VICTORIA
Melbourne's outer east has been revealed as Victoria's NIMBY paradise, with a handful of areas recording fewer than 20 new home approvals in the past two years.
From The Basin and Montrose to Rowville and Frankston, there has been a less than 1 per cent increase in the supply of new homes since 2023.
However industry experts have warned there could be deeper issues with building costs, insurance availability and other market forces that could mean they are never developed.
Mr Mortlock said areas with restrictive zoning, strong heritage overlays, or vocal local councils could be problematic.
'These are the suburbs where new development is tightly controlled, and the existing character of the area is fiercely protected,' Mr Mortlock said.
'If you're someone who values predictability in your streetscape and doesn't want a mid-rise apartment block popping up next door, these locations offer a kind of residential preservation.'
NEW SOUTH WALES
Chronic opposition to new housing in prime western suburbs has strangled attempts to supply Sydney with the vital homes needed to meet surging population growth.
The MCG analysis revealed multiple, large Harbour City enclaves where fewer than 20 new homes were built over the past two years, with local housing supply growing by less than a per cent.
There were 78 suburb areas identified as having 'minimal to negligible' housing growth due to low dwelling approval rates.
The low approval rates were 'indicative of local opposition or restrictive zoning practices', the research revealed.
It comes as NSW continues to fall behind housing targets, with the state well short of the 377,000 homes needed to be built to meet the National Housing Accord target of 1.2 million new homes by 2029.
Sydney areas with the least new housing approvals tended to be established suburbs dominated by low density, single-level homes.
These suburbs often had space to grow and much of the community opposition to the new homes has been on density grounds.