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Melbourne Embraces Townhouses to Boost Urban Density

2/27/2026

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Story summary
  • Townhouses and terraces offer an affordable way to increase density in Melbourne's inner-urban areas.
  • Over the past 35 years, Victoria's semi-detached approvals have risen, surpassing Queensland and New South Wales.
  • Reforms to the Townhouse and Low-Rise Code simplify approvals for new townhouses.
  • Brendan Coates of the Grattan Institute argues that boosting townhouse approvals will better expand density and supply in desirable locations than the government's high-rise focus.