A new report published by the Australian Public Policy Institute finds that inconsistent zoning of Heritage Conservation Areas (HCAs) across Greater Sydney requires a comprehensive, state-led review to ensure that areas of genuine heritage are protected while meeting public demands for greater housing supply.
The report, The impacts of Heritage Conservation Areas on housing delivery in Sydney, written by Policy Fellow Meagan Kanaley, finds that while heritage conservation delivers important social, cultural and economic benefits, the impacts of HCAs on housing supply, affordability and lost development potential have received limited attention in planning policy.
It argues that many HCAs are concentrated in well-serviced inner-city areas where development controls restrict density and redevelopment, reducing opportunities to deliver new housing close to jobs, transport and infrastructure. The paper also estimates that removing HCA controls while retaining individual heritage items across the five most affected Sydney Local Government Areas could unlock capacity for approximately 84,771 additional dwellings under existing planning controls.
The report recommends a package of opportunities, including a state-wide review of all HCAs, a publicly accessible HCA database, mandatory evidence-based impact assessments, clearer heritage criteria, regular policy reviews and stronger governance to better align local heritage decisions with broader state housing objectives.
Author Meagan Kanaley said heritage conservation and housing delivery should not be viewed as competing objectives. “Heritage is an important part of Sydney’s identity, but the planning system also needs to respond to the housing needs of a growing population. There is an opportunity to embrace a more transparent, evidence-based framework that protects places of genuine heritage significance while supporting housing where it is needed most.”
There is an opportunity to embrace a more transparent, evidence-based framework that protects places of genuine heritage significance while supporting housing where it is needed most.
Meagan Kanaley, APPI Policy Fellow
Marianna Brungs, APPI Executive Director of Policy & Projects, said the report highlights the importance of examining planning systems to ensure fair and transparent application. “Australia’s housing shortage requires governments to carefully examine every part of the planning system. This report provides a practical, evidence-informed contribution to that discussion by identifying opportunities to better balance heritage conservation with the delivery of well-located housing.”
The report was produced through the APPI Policy Fellowship program, which supports policy-relevant research with strong potential to inform government decision-making and public policy. The Public Service stream supports secondments to undertake independent research on pressing community priorities.
