Australia’s population is projected to reach around 39 million by the mid-2060s, putting renewed focus on where millions of additional residents will live and whether housing and infrastructure planning can keep pace.
The Planning Institute of Australia (PIA) has used the release of the 2026 Intergenerational Report to call for a National Framework for Australia’s Growth, arguing decisions around housing, population, infrastructure, jobs and climate need to be considered together.
Federal Treasurer Jim Chalmers’ 40-year outlook projects population growth will slow to 0.9 per cent annually, while Australia’s population will age more rapidly than was projected three years ago.
For the property industry, PIA says those demographic changes will have implications for the types of homes Australia needs, where development occurs and the infrastructure required to support new and existing communities.
“The Intergenerational Report provides a 40-year view of the shifts Australia needs to plan for. Good planning turns that long-term outlook into decisions about how we grow, where we invest in infrastructure, and how we build resilience to a changing climate,” PIA National Head of Policy and Advocacy Nicole Bennetts said.
“The number of Australians aged over 85 is expected to triple over the next 40 years. At the same time, we are planning for millions more people, a changing climate and major economic and technological change. These shifts will influence the homes we need, how people move around and where we need to invest.”
PIA is advocating for a national framework that would bring together policies covering population growth, housing, employment, climate and infrastructure, while testing different scenarios for how and where Australia could grow over coming decades.
The proposal comes as the Senate Select Committee on Productivity considers the objectives of a multi-decade national settlement strategy as part of its broader productivity inquiry.
Ms Bennetts said a more coordinated approach would help governments make decisions about where future growth should be directed.
“Governments make major decisions about population, housing, climate, infrastructure and economic development across different portfolios and levels of government. A national framework would bring those decisions together spatially and help Australia make more deliberate choices about where we grow well.”
“The scale of change ahead means we need to invest in planning: keeping strategic plans up to date, building the evidence base, planning for future climate conditions and ensuring infrastructure keeps pace.”
The call also intersects with the Productivity Commission’s current inquiry into housing supply regulation, with PIA arguing reforms designed to tackle the present housing shortage should also account for Australia’s longer-term growth.
For developers and the broader property sector, PIA said upfront strategic planning could provide greater certainty around where development can occur, the form it should take and what infrastructure and services will be required.
“We need reforms that address today’s housing shortage but last far into the future. That means planning for the growth each place can successfully accommodate.
“Upfront strategic planning gives communities and industry greater certainty about where growth can successfully occur, what form it should take, and the infrastructure and services needed to support it.”
“The Intergenerational Report looks 40 years ahead, and our planning systems need to be invested in to do the same. Investing in good planning now will shape the Australia we live in for generations.”