Innovative planning laws passed to fix Aus housing crisis

Game-changing laws could see the creation of multiple dwellings inside homes in what has been described as one of the most creative pieces of planning policy in years.

In an effort to tackle South Australia’s housing crisis, the South Australian government last month adopted the Future Living Code Amendment – an innovative planning rule change aimed at increasing housing diversity and affordability by incorporating a new type of ‘co-located’ housing in established suburbs.

The new laws is set to apply across six SA councils – Unley, Walkerville, Campbelltown, Burnside, Prospect and Alexandrina – which developed the legislation with UniSA and the state government.

The revised planning rule could serve as the cornerstone for national policies aimed at addressing Australia’s critical housing shortage.

Under the amendment, property owners will be able to modify and extend existing homes, rather than resorting to the demolition and subdivision commonly used in urban development.

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It is hoped this approach encourages the creation of housing complexes where all units are of a similar size and share common spaces, promoting a sense of community among residents. Key to this initiative is the retention of mature trees, established gardens, and traditional streetscapes, contributing to the overall liveability and aesthetic appeal of neighbourhoods.

Properties developed under this scheme will be managed through a community title framework to ensure co-located neighbourhoods remain desirable and sustainable living spaces.

To support the development of these housing units, clear guidelines will be set, specifying requirements such as a minimum of 24sqm of communal open space per dwelling.

Design plans will also require step-free pedestrian pathways and common areas to ensure safety and accessibility.

Parking concerns must be address through the provision of at least two off-street parking spaces for co-located homes with three or more bedrooms.

Originally conceived as a housing solution for elderly people seeking to downsize within their own communities, the flexible nature of co-located housing is expected to attract a diverse demographic, including larger families and individuals at various life stages seeking affordable living options.

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Examples of co-located housing that would be created to tackle SA’s housing crisis under a new proposal by the State Planning Commission. Picture: Dr Damian Madigan, University of South Australia

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The planning code amendment has received mixed reviews with Urban Development Institute Australia SA chief executive Liam Golding telling The Advertiser he did not believe there would be strong uptake.

“This is a good initiative that may provide some additional flexibility and some additional housing, but we think the yield will be so low that we still need to do a lot of other things to get the housing that we need for South Australia,” he said.

“We think in many cases those allotments (where this could be suited) will be developed in a more traditional subdivision way for greater profit.”

Housing Industry Association executive director Stephen Knight said his association supported the laws, but said it would probably apply to “more expensive type developments rather than affordable housing”.

“It’s a good step in the right direction; it’s a legitimate solution for people ageing in place,” he told The Advertiser.

“It would be good if eventually it was able to be translated into outer suburbs, where perhaps it can be used as another way of creating more affordable housing.”

The government has asked the six participating councils to formally confirm their support of the policy. Upon their confirmation, the new rules will come into effect in their areas.