The Policy Shift That Could Reshape Property Prices

When we talk about Australia’s housing crisis, interest rates and investors dominate the conversation—but the real drivers run deeper. In this episode, we unpack how Australian housing policy—particularly zoning and planning reform—is shaping the housing supply crisis, and whether strategic planning reform can genuinely improve affordability without destabilising the market. We explore the economics behind land scarcity, why middle suburbs have become effectively “locked up,” and how allowing three storey townhouses and gentle density could reshape housing supply. Brendan breaks down what broad upzoning actually means in practice, how Victoria and NSW are approaching reform differently, and whether these changes meaningfully shift feasibility for developers. For investors, this raises the bigger question: if scarcity underpins capital growth, what happens when supply constraints are relaxed? Does planning reform erode returns—or simply create a more functional market? If you care about Australian housing affordability, the housing supply crisis, or the long-term fundamentals of property investment, this episode cuts through the politics and gets to the economics. Episode Highlights 03:28 — It’s Planning Bans, Not Approval Delays 05:58 — The Real Demand for Missing Middle Housing 09:01 — Melbourne’s Affordability Trade-Off Explained 13:30 — Development Costs and Feasibility Realities 15:31 — The Hidden Zoning Tax on Housing Supply 18:06 — Why Townhouses Beat High-Rise in Suburbs 21:36 — The Economics of Three-Storey Townhouses 24:38 — Land Size, Lot Layouts and Buyer Preferences 26:26 — Property Advice and Strategic Thinking 27:33 — Sydney vs Melbourne: A Zoning Divide 29:01 — NIMBY Politics and the Density Debate 34:02 — Can Builders Deliver More Townhouses? 38:15 — What Global Upzoning Success Looks Like 39:12 — Unlocking Australia’s Locked-Up Suburbs 44:04 — Stamp Duty and Why People Don’t Move 48:45 — The Big Property Lesson from This Debate 49:49 — Final Takeaways and Listener Questions Links Planning better cities - Grattan Institute More homes, better cities: Letting more people live where they want About the Guest Brendan Coates is a leading housing and economic policy expert specialising in Australian housing policy and structural reform. His work focuses on planning reform, housing supply, taxation settings and the long-term drivers of housing affordability. With a strong grounding in economic modelling and public policy, Brendan brings evidence-based analysis to the debate around zoning reform, strategic planning reform, and the feasibility of medium-density housing such as three storey townhouses. His research examines how planning systems shape land scarcity, market outcomes and intergenerational equity. In this conversation, Brendan offers a measured and data-driven perspective on what it will actually take to address Australia’s housing supply crisis—and what that means for both homeowners and property investors. Connect with Brendan Brendan’s LinkedIn Grattan Institute’s LinkedIn Grattan Institute’s Website Grattan Institute’s Facebook Grattan Institute’s YouTube Resources Visit our website: If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast - questions@theelephantintheroom.com.au Looking for a Sydney Buyers Agent? Work with Veronica: Looking for a Mortgage Broker? alcove.com.au Work with Chris: chrisbates@alcove.com.au Enjoyed the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word, and join us for more insightful discussions in real estate. Your journey starts now!

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The Policy Shift That Could Reshape Property Prices is an episode from The Elephant In The Room Property Podcast | Inside Australian Real Estate by Chris Bates.

This episode is 50:39 long.

This episode was published on Mar 15, 2026.

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