Affordable housing has become a major focus of Australian public policy and discourse. Much of this discourse focuses on the capacity of the land use planning system to deliver sufficient new housing supply. Following two decades of declining funds for public housing development and new infrastructure provision, supply has been ‘rediscovered’ as a housing policy concern, not only in Australia but also in many other developed countries.

The land use planning system plays a crucial role in delivering new housing supplies in preferred locations. When this system is not working efficiently, delays in the release of residential development land, issuing planning approvals, or facilitating infrastructure provision can all result in an undersupply of new housing relative to demand. It is also argued that fundamental planning policies – such as decisions to contain urban growth by limiting the release of land for new development – are inherently inconsistent with overall affordability goals. Containment may affect affordability if sufficient alternative development opportunities are not provided, or because the amenity effect of consolidation is positive and so enhances house prices.