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This chapter explores changes in attitudes and preferences—in other words, the underlying demand—for different types and locations of housing in Australia’s largest cities. Until recently, housing preferences have strongly favoured detached housing and low-density urban settings. This is now changing. This section reports on data from a major household survey that examined the attitudes of resident property owners in the middle suburbs of Sydney and Melbourne to neighbourhood change and medium-density housing development. It examines household preferences and trade-offs related to different ‘living arrangements’ (dwelling  and  location combinations) and attitudes to lot amalgamation and bottom-up redevelopment between neighbours. The survey identified clear shifts in ‘living arrangement’ priorities in the major capital cities that now reveal equivalent preferences for medium-density housing in established areas with good public transport versus detached housing in car-dependent suburbs.  It highlights the lag in supply-side response by the property-development and building industries, as well as the missed steps by metropolitan and municipal governments in strategic planning and rezoning of established suburban greyfield precincts to accommodate medium-density housing at scale: in essence, GPR.

Changing Attitudes to Housing and Residential Location in Cities: The Cultural Clash and the Greyfield Solution