Australia is not short of demand, it is short of coordination.
Australia’s population growth is accelerating, but the national framework to manage it is not keeping pace, according to a new report from the Planning Institute of Australia.
The organisation warns the country is heading towards a population of more than 40 million people by 2065, with more than 14 million additional people expected over the next four decades, but without a coordinated national plan to align housing, infrastructure and population policy.
At the centre of the concern is what the Institute describes as fragmented decision-making across government, with housing, transport and population settings often developed in isolation.
“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.”
The Institute says this disconnect is contributing to ongoing pressure in major housing markets, particularly Sydney and Melbourne, while also driving increased demand in surrounding regional centres and growth corridors.
It also warns that future population growth will continue to reshape Australia’s cities and regions, with climate risk increasingly influencing where development can safely occur.
“When growth is planned well, it delivers more homes in well-serviced areas, shorter commutes, infrastructure delivered when communities need it, and more choice about where to live and work,” Ms Riley said.
The Planning Institute of Australia is calling on the Federal Government to develop a National Plan for Australia’s Growth to better coordinate long-term housing, infrastructure and population planning.
View the report here.
FACT BOX: Planning Institute of Australia findings
Population outlook
- Australia projected to exceed 40 million people by 2065
- More than 14 million additional people expected over the next 40 years
Core issue identified
- No coordinated national plan for housing, infrastructure and population growth
- Fragmented decision-making across government policy areas
Impacts highlighted
- Rising house prices and rents linked to supply constraints
- Longer commutes and transport congestion
- Infrastructure not keeping pace with population growth
- Increased pressure on urban services
Geographic pressure points
- Sydney and Melbourne identified as key high-growth cities
- Increasing spillover into regional areas and growth corridors
Key risks
- Continued housing affordability pressure if planning remains fragmented
- Infrastructure lag in fast-growing regions
- Climate risk increasingly influencing future development decisions
Planning recommendation
- Development of a National Plan for Australia’s Growth
- Better alignment of housing, infrastructure and population policy
Economic context (as cited by PIA)
- Up to $29 billion potential productivity gains from better-functioning cities (Productivity Commission estimate)