The Morning Edition Will ‘gentle density’ help fix our housing stupidity?
Dec 2, 2025
Shane Wright, Senior Economics Correspondent, dives into Australia’s housing crisis, highlighting astonishing median house values in major cities. He introduces the concept of gentle density, which could deliver one million new homes through property subdivision. Shane shares insights from New Zealand’s success and discusses potential downsides, like local resistance and infrastructure strain. He also examines the role of interest rates and government policies, pondering whether state initiatives can pave the way for this innovative housing solution.
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Chronic Housing Shortfall Drives Price Madness
- Australia builds far fewer homes than it needs, creating a large shortfall that pushes prices up.
- Shane Wright calls the resulting market dynamics “stupidity” that inflates mortgages and risks long-term economic harm.
What Gentle Density Actually Means
- Gentle density allows 2–3 homes or low-rise apartments on existing suburban blocks rather than single detached houses.
- The idea targets middle-ring suburbs to boost supply without high-rise towers or distant sprawl.
Auckland Shows What Default Subdivision Does
- New Zealand's Auckland adopted permissive subdivision and slowed projected price rises.
- Making subdivision the default reverses restrictive planning norms and increases housing flexibility.