ACT unveils missing middle housing reforms

New zoning and design changes aim to boost medium-density supply

ACT unveils missing middle housing reforms

The ACT government has released a set of proposed planning reforms aimed at increasing housing supply and diversity across the territory, focusing on the introduction of more medium-density housing – often referred to as the “missing middle.”  

The package includes changes to suburban zoning laws and a new design guide, both intended to support the construction of housing types such as townhouses, terraces, duplexes, and low-rise apartments in existing suburbs. The reforms are open for public feedback through the government’s YourSay Conversations website.  

According to the government, the changes are intended to support its target of delivering 30,000 new homes by 2030, with the broader objective of housing Canberra’s forecast population of 700,000 by 2050.  

The term “missing middle” describes housing options that sit between detached homes and high-rise apartment blocks. These medium-density options are typically more sustainable and compact, offering more affordable and varied living choices closer to schools, shops, public transport, and community services.  

The proposed reforms include amendments to the Territory Plan and a draft design guide developed in collaboration with local industry experts. The government says this approach will enable greater use of existing land and promote better-integrated neighbourhoods.  

Industry groups have responded positively to the announcement, viewing it as a long-overdue shift in the capital’s housing strategy.  

Ashlee Berry, ACT and capital region executive director at the Property Council of Australia, described the reforms as a strong start toward providing more housing options for Canberrans.  

“We’ve made consistent calls for urgent zoning reforms to unlock more housing in Canberra,” Berry said. “More townhouses, duplexes, terraces and low-rise apartments in our existing suburbs will give more Canberrans the housing choice they’ve been crying out for. This is generational planning change that will bring our suburbs into the 21st century.”  

The Housing Industry Association (HIA) has also expressed support. Executive director Greg Weller noted that Canberra’s development has become polarised between detached homes and high-rise buildings, leaving medium-density housing behind.  

“Low-rise density housing such as dual-occupancies, townhouses and walk-up apartments have not kept pace,” Weller said. “Sensible and well-planned medium density will be essential to deliver on Canberra’s future housing needs if the city is to limit its geographic size.”   

Weller welcomed specific changes in the proposal, including the removal of the 120-square-metre dwelling limit on subdivided blocks in RZ1 residential zones. He added that this and the removal of “arbitrary controls” like dwelling caps would open the door for more flexible and context-sensitive design outcomes. 

“These reforms will go a long way to supporting the ACT’s longstanding policy to build 70% of new homes within the existing urban footprint,” he said. 

The ACT government is urging residents to participate in the consultation process. Community members can view the proposed changes and provide feedback through the YourSay Conversations platform. Information sessions are also being held to explain the changes and gather input.  

Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.