Coordinated planning leads to better housing outcomes

AUSTRALIA is projected to reach a population of more than 40 million people by 2065 but growth is occurring without a coordinated national plan, placing increasing pressure on housing, infrastructure and everyday life.

A new report by the Planning Institute of Australia is calling on the Federal Government to commit to a National Plan for Australia’s Growth, warning that, without better coordination, Australians will continue to face rising housing pressures, longer commutes and increasing exposure to natural disasters.

“Right now, decisions about housing, infrastructure and population aren’t joined up and that’s one of the reasons why people are feeling the pressure in their day-to-day lives,” said Emma Riley, national president of the Planning Institute of Australia.

“When growth isn’t planned well, people pay for it through higher house prices and rents, more time stuck in traffic and overcrowded services and infrastructure.”

Why Australia needs a national plan now

Australia’s population is projected to grow by more than 14 million people over the next four decades, reaching over 40 million by 2065.

PIA said that growth is already placing significant pressure on housing supply, infrastructure networks and cost of living, particularly in major cities like Sydney and Melbourne. 

Without a national plan, that growth will continue to drive up costs and reduce quality of life. 

The Productivity Commission estimates that better functioning towns and cities have the potential to deliver a $29 billion long-term gain for our nation, driven by improved transport, housing and land-use alignment. 

At the same time, the economic cost of natural disasters is already estimated at around $38-39 billion annually and is projected to increase to more than $70 billion a year by 2060 if growth continues without stronger planning and resilience. 

“Investing in good planning isn’t abstract, it’s about making everyday life easier and more affordable,” Riley said.

Growing well means better outcomes for Australians

The PIA report makes clear that how Australia plans for growth will shape whether it enhances or erodes quality of life, now and into the future. 

“Regardless of the pace of growth, the focus must be on planning so Australia grows well,” Riley said.

When growth is planned well, it delivers more homes in well-serviced areas; shorter and easier commutes; infrastructure delivered when communities need it; and more real choice about where to live and work.

“This is about making sure growth leads to better communities, not bigger pressures on households,” Riley said.

A practical national plan

A National Plan for Australia’s Growth would bring together decisions that are currently made separately, including housing, infrastructure, population growth and economic development, into a coordinated, long-term framework.

PIA said the framework would not direct where people live but ensure governments are planning for growth in a way that supports housing supply, infrastructure delivery and economic opportunity.

These include:

1. Metropolitan megaregions

Australia’s largest cities continue to dominate population and economic growth, with Sydney and Melbourne each projected to approach eight million people by mid-century.

Sydney’s growth is extending into Greater Western Sydney, while Melbourne continues to expand across its western and northern growth corridors.

At the same time, regional cities adjoining capital cities like the Sunshine Coast, Geelong and Wollongong are becoming increasingly tied to these metropolitan economies through commuting patterns and shared labour markets. 

A national plan would help manage this reality, ensuring housing supply, transport infrastructure and employment precincts are aligned across these broader city-regions.

Without that coordination, growth outpaces infrastructure, leading to congestion, housing shortages and rising costs.

2. Connected city regions

Faster transport connections, such as high-speed rail, have the potential to reshape how Australians live and work by linking major cities with surrounding regional centres.

The proposed Sydney-Canberra-Melbourne high-speed rail corridor is an example. Centres like Newcastle, Wollongong and Albury-Wodonga could become part of connected economic regions, where people can live in one city and work in another, supported by fast, reliable transport. 

A national plan would ensure these major infrastructure investments are not made in isolation.

Instead, housing development, jobs and services would be planned alongside transport, turning infrastructure corridors into genuine economic hubs.

3. New cities strategy

Australia has a history of successfully creating new cities and growth centres but only when planning and investment are aligned.

Canberra is the best example, growing from a small settlement into a thriving capital through sustained national coordination and investment.

More recently, places like Springfield in Queensland and Bradfield in Western Sydney show how new urban cities can be deliberately planned to accommodate housing and jobs growth. 

However, without coordination, new developments risk becoming dormitory suburbs, places people sleep but don’t work.

A national plan would help ensure new cities are supported by transport, jobs, education and health infrastructure from the outset, creating complete, productive communities rather than car-dependent sprawl.

4. Regional network growth

Regional Australia has significant untapped potential but growth is uneven, cyclical and often dependent on proximity to major cities.

Regional cities like Townsville, Cairns, Ballarat and Bendigo have the foundations for stronger growth, including established communities, services and economic activity.

At the same time, recent migration trends show people are already moving to regional areas, particularly those within commuting distance of capital cities, such as the Sunshine Coast and NSW Central Coast. 

A national plan would take a more deliberate approach by identifying which regional centres have the greatest long-term potential and aligning infrastructure, housing and economic development to support them. This would strengthen regional economies while easing growth pressure on major cities.

5. Climate-resilient growth

Climate risk is already reshaping where and how Australia can grow and the costs of getting it wrong are rising.

Recent events like the 2022 Northern Rivers floods and the relocation of Grantham in Queensland highlight the long-term consequences of building in extreme risk areas.

At the same time, coastal erosion, bushfire risk and urban heat are increasingly influencing settlement decisions. 

A national plan would ensure future growth is less exposed to climate risk by directing new housing and infrastructure toward safer locations and reducing exposure to natural hazards.

This is about avoiding billions of dollars in future recovery costs and building more resilient communities from the outset.

Scenario planning is a widely used tool to test how different futures might play out.

These scenarios are not predictions but a way to understand the trade-offs between growth pathways, helping align decisions on housing, infrastructure and investment.

“These aren’t abstract futures, they’re happening in different ways right now.  The choice is whether we get ahead of them, or keep reacting after the fact,” Riley said  

Call to action

PIA is calling on the Federal Government to build on the National Urban Policy released in 2024 and commit to developing a National Plan for Australia’s Growth.

“A coordinated national plan will help ensure we deliver more liveable places, stronger economies and a better quality of life for Australians,” Riley said.