Menu
An estimated 82,500 new homes that could begin construction today are yet to break ground due to a lack of sewers, roads and other enabling infrastructure, according to a new report.
Beyond Bricks: Delivering the housing we need sooner in Australia’s Growth Areas, launched today by the National Growth Areas Alliance (NGAA), reveals that chronic underfunding in outer metropolitan cities and suburbs with above average population growth, known as Growth Areas, is the cause of critical housing supply bottlenecks.
“Growth Areas account for just 5% of councils but are obligated by State Governments to deliver 26% of new housing development. That’s 310,000 new houses, over a quarter of the Federal governments promised 1.2 million new homes by 2029” says NGAA CEO, Ms Bronwen Clark. “Despite this, Federal and State Governments maintain a relentless focus on apartments and inner-city infill and densification.
“Meanwhile in Growth Areas, the land is ready, council approvals are complete, and the developers are waiting, but without basics like roads and sewers, the houses go unbuilt,” adds Ms Clark.
Not all councils: Growth Areas are approving development applications, but building can’t commence
“Blaming all councils for housing delays is an easy way out for State and Federal governments, but the facts are that Growth Area Councils have become the backbone of housing supply, making up 35% of home approvals nationally,” says Ms Clark.
On average, over 61,000 homes are approved each year in Growth Areas. Over the past five years, these 29 councils have approved 320,000 dwellings, around half of all approvals across the five capital cities.
In Melbourne, six of the seven councils on track to exceed dwelling targets are Growth Area councils. In Sydney, five of the top ten councils by DA performance (number of DA assessments meeting timeframe expectations) were Growth Area councils.
Worryingly, the development sector has also flagged significant blockages for new projects, with 2024 data showing that 33% of the housing pipeline requires one or more types of enabling infrastructure to progress to dwelling commencement status.
Predominantly affecting Growth Areas, enabling infrastructure deficits could affect up to 47% of builds in the Greater Sydney Megaregion, 45% in Southeast Queensland and 31% in Greater Melbourne.
“If enabling infrastructure is not funded in Growth Areas, the planned 300,000 new homes in these communities will not be built by the 2029 deadline,” says Ms Clark. “The shortfall will have huge implications for the current target of 1.2m new homes laid out in the National Housing Accord,” she adds.
Government must accept outer suburbs are a vital part of the nation’s future – and a great choice for many Australians
Australia’s 29 Growth Areas are currently home to a fifth (21%) of all Australians, a figure that’s set to rise as their population increases from 5.8m residents today, to a predicted 7m by 2031.
“Governments are operating under a false assumption that higher house prices and greater density in inner cities means that these locations are more desirable. However, population data shows people are choosing outer suburban communities and the Australian dream of a house and back yard,” says Mayor Terresa Lynes, Chair of the National Growth Areas Alliance and Mayor of the City of Gosnells.
Internal migration shows that 53% of Growth Area residents have lived at the same address for the past five years. Meanwhile, 37%, accounting for 232,000 people, had moved from elsewhere, half (55%) of which had moved from another Growth Area.
The Government’s failure to fund enabling infrastructure in these rapidly growing communities is already significantly impacting the lives of Australians, Mayor Lynes continues:
“We’re seeing entire estates without connected sewerage and insufficient water. It’s concerning that in 2025 this is what Governments are expecting people to accept as their lot,” says Mayor Lynes. “The Government is failing these Australians before their house is even built, let alone by the subsequent underfunding of infrastructure communities need to thrive once they move in,” she adds.
RMIT Urban Observatory data shows that current Growth Areas have significantly lower levels of access to local amenities than in established suburbs. Residents are 37% less likely to have access to public transport in their area. These gaps extend to education (21%), healthcare facilities (48%), arts and culture (44%) and sports and leisure (68%).
The Growth (Area) potential
With the deadline for the National Housing Accord just five years away, there is still time to unlock massive potential in Growth Areas, starting by recognising they are also priority regions for housing, according to Mayor Lynes:
“Growth Areas are Australia’s biggest infrastructure project and housing opportunity. It’s time for all levels of government to work together strategically and efficiently to deliver non-negotiables, like sewerage, energy and roads in the areas that are ready to build the homes of tomorrow.”
Read the full report here.
