Transforming Perceptions of Higher Density Living

To effectively combat the housing crisis, it’s imperative that we shift our focus towards bolstering the local communities that will bear the weight of increased density.

Australia is undeniably grappling with a severe housing crisis. The Committee for Sydney is calling it ‘chronically unaffordable’ in Sydney, and they estimate that it could be costing our economy more than $10 billion per year.

The Committee for Melbourne’s Benchmarking Melbourne 2023 report highlights that there is a ‘Tale of Two Cities’, emerging in Melbourne from the continued expansion of the suburbs and that an appropriate mix of housing types are needed to address housing supply and affordability challenges in Australia’s biggest city.

While both Federal and state governments are injecting billions into solving the issue, it’s important to recognise that the government can alter policy settings and provide essential infrastructure although ultimately, it’s the private sector that delivers 95% of housing.

The consensus is clear: more housing is essential to bolster supply and alleviate the escalating costs of housing and rents. Building residences in proximity to established urban areas and existing transportation hubs is the most financially efficient approach to introducing more homes into the market.

Although most members of the community acknowledge the need for additional housing, they are reluctant to see it developed where they live. Increasing density within established communities often encounters local resistance, giving rise to the NIMBY phenomenon (Not In My Back Yard).

It’s commendable that governments at all levels are allocating resources and streamlining processes to address the crisis. However, these noble intentions could be swiftly undermined should there be a significant backlash from community groups, potentially causing governments to backtrack on their commitments.

SEC Newgate recently conducted a national survey of 1,203 Australians to understand the factors influencing public support or opposition towards new housing developments in their vicinity. The findings were enlightening.

• Unsurprisingly, individuals were more amenable to new housing developments if their local community directly benefited from them. The creation of new parks and open spaces ranked highest, garnering 75% more support.
• Supportive infrastructure, including roads, schools, and early childhood centres, was also favourably received, as it strikes a balance between potential impacts and the desire to enhance communities.
• Support for early communication, consultation, and the opportunity to influence housing projects indicates a strong desire for involvement in local area development.
• Knowing that a project is highly energy efficient and sustainable was also rated highly, which reflects a community that is genuinely concerned about the plant and environmental impacts.
• Surprisingly, there was less support for new developments when they were seen to benefit specific demographics (e.g., renters, seniors, or students).
• However, when new housing was intended for ‘key workers’ such as teachers, nurses, and police officers, forming part of an affordable housing plan, 47% of people are more supportive.

Insights

• Governments and industry stakeholders must consider the specific needs of local communities where new housing projects are proposed.
• New housing must be complemented by supporting infrastructure and services to prevent overburdened roads and ensure accessibility to essential amenities like schools and healthcare.
• Increased communication and engagement are crucial in overcoming potential resistance to new housing developments within established communities.
• It’s imperative to shift perceptions about higher density living. Communities need assurance that their areas will flourish and become more dynamic with the addition of services and supportive infrastructure to accommodate new homes.

Contacts

SEC Newgate is a full-service communications firm and a trusted advisor to Australia’s property sector. We recognise that strong communication and engagement is essential in planning and decision-making. We can assist during every step of the planning process.

If you would like to be briefed in more detail about our research or insights, please reach out to our property experts.

Jeremy Vine, Associate Partner, SEC Newgate Communications – [email protected]

Clint McGilvray, Partner, SEC Newgate Communications – [email protected]

David Stolper, Partner, SEC Newgate Research – [email protected]

Jamin Smith, Partner, SEC Newgate Communications – [email protected]

Brenton Baldwin, Account Director, SEC Newgate Communications – [email protected]

Hannah McLeod, Account Director, SEC Newgate Communications – [email protected]