Why artificial intelligence could be the answer to Australia’s housing approvals gridlock
The housing crisis isn't being helped by being bogged down in red tape, and with tens of thousands of housing applications sitting idle in a queue technology could come to the rescue.
As Australia’s housing crisis grows more dire, pressure is mounting on the Australian government to deliver more homes, faster than ever before.
Outdated planning systems are now the latest housing setback to be put under the microscope, with the Federal Government announcing a new plan to cut red tape.
Lengthy approval times, inconsistent decision-making and a lack of resourcing are all issues at the forefront of the new initiative to use artificial intelligence to speed up environmental approvals.
Housing Minister Clare O’Neil says the use of artificial intelligence will free up time for builders to be on site, rather than filling out forms.
While the move is currently focused on clearing a backlog in environmental assessments, the announcement sparks an opportunity for this technology to be rolled out to all levels of the planning process.
26,000 housing applications and growing
At the centre of the Federal Government’s new plan is a staggering backlog of 26,000 housing applications that have been stalled due to slow environmental approvals.
This backlog has become a key barrier to meeting housing targets, with many projects delayed before even reaching state planning departments or local councils.
Automating parts of the assessment process via artificial intelligence is tipped to dramatically reduce wait times, unlocking housing supply currently left in limbo.
To tackle this issue head-on, the government plans to use a multi-faceted approach that will see changes to the National Construction Code paused for the next four years, in addition to the establishment of a dedicated strike team to focus on freeing up this backlog.
This temporary halt aims to give certainty to the construction industry while this new AI solution is implemented.
It has not, however, come without criticism from key players in the industry, who say this could stem progress.
AI to unlock new potential
While the immediate focus is on streamlining environmental approvals at a federal level, the use of artificial intelligence in planning and development has already shown promise across several states.
In South Australia, the State Government is trialling an Automated Decision-Making pilot to improve efficiency and outcomes in planning approvals.
Under this system, applications for detached houses can now be assessed in a matter of minutes, compared to an average of 9.5 business days.
This system also provides applicants with near real-time feedback before submission, allowing errors or omissions to be caught and resolved early in the process.
By focusing on applications that fall into the ‘Accepted’ or ‘Deemed to Satisfy’ categories, the technology reduces administrative workload and allows human resources to be allocated towards more complex assessments.
In New South Wales, similar efforts are underway. Sixteen local council have been awarded more than $2.7 million in funding to take part in trialling AI in their planning systems.
Councils in New South Wales, which currently assess approximately 85 per cent of all residential development applications in the state, will use AI to pre-screen applications for mistakes, duplications or unmet requirements.
This technology is slated to not only speed up the process, but also improve the accuracy and consistency of decisions.
Private developers want in
As the public sector moves to integrate AI into planning systems, the opportunity arises for the technology to be rolled out more broadly.
In Western Australia, approval for a development under $7 million can take up to 90 days, while larger projects are drawn out to 120 days.
Meanwhile, wait times in Victoria and New South Wales have blown out to four months.
Around Australia, lengthy approval times are stifling the feasibility of housing projects, particularly for small to mid-sized private developers.
For private developers, particularly those focused on infill and medium to high-density projects, the consequences of these delays are significant.
These companies face the same approval and construction challenges as public sector builders yet do so without the same level of policy support, facing tighter financial margins and greater market risk.
Consistent and automated decision-making is key to increasing housing supply at the scale needed to stem Australia’s housing crisis.
With tens of thousands of homes caught in planning limbo, integrating artificial intelligence could be a game-changer in delivering streamlined and predictable outcomes for applicants, reducing the back-and-forth that causes headaches on both sides of the approvals process.
For this to be achieved, however, this technological solution needs to be implemented not just at a federal level, but across state and local governments as well.
