Runaway house prices could be slowed by development changes: report
Housing affordability can be improved by overhauling the way development and infrastructure are planned in south-east Queensland.
That’s according to the co-author of a Suburban Futures report exploring how plumbing and electrical plumbing processes can be innovated in new homes.
“We must challenge ‘business as usual,’” said co-author Ross Elliott.
“I’ve never come across anyone in the industry who says ‘business as usual’ is fine and working. The universal answer seems to be that ‘business as usual’ is badly broken.”
“Simply saying, ‘Look, we’ve always done things this way’ is no longer good enough.”
The report also examines the potential benefits of a model used abroad for planning and financing new infrastructure.
Last year this imprint reported that the average cost of preparing a block for construction (including connection to infrastructure) had risen by nearly 80 per cent since the pandemic to just over $180,000, according to Colliers.
The Suburban Futures report, published in February, explores this challenge and suggests treating new development areas as “infrastructure islands” that can operate independently of larger networks.
He says his offerings could reduce up-front costs and put new homes on the market years earlier than they would otherwise be available.
Localized water purification and new forms of electricity generation and storage are particularly proposed to increase scalability.
An overarching organizational and financing model called a Municipal Utilities District (or MUD) is being flagged as a possible way to organize and finance projects.
These are used in several southern states of the United States and operate as small local government units responsible for the provision and maintenance of public services. The new infrastructure will be paid for over time by the residents who use it.
“Texas is a fast-growing state, like Queensland, with very high population growth, but they’ve managed to maintain affordability while we haven’t,” Elliott said.
“I’m not saying it’s all down to utilities, but it has been a contributing factor.
“Why don’t we look at what they’re doing and try to learn from it?”
Elliott said the state government needed to hold a comprehensive public consultation before legislating to make the changes possible, but he believed the impact on prices could be significant.
“We’re not saying we have all the answers. What we’re doing is, have we thought enough about making those connections?” he said.
“I have no idea [why development processes haven’t changed]. I really don’t know. That’s the $64 million question.”
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