ACT's 'Missing Middle' Housing Reforms Take Effect, Aiming to Ease Cost‑of‑Living Pressures

The ACT Government’s ‘missing middle’ housing reforms officially came into effect on 1 July 2026, changing the rules for residential development in Canberra’s RZ1 and RZ2 zones. Under the new planning framework, townhouses, terraces, duplexes, triplexes and low‑rise apartments are now permitted on any residential block in those zones, a shift designed to increase housing supply and, in turn, ease cost‑of‑living pressures for local households.

What the reforms mean for Canberra residents

The reforms are part of a broader strategy to make housing more affordable and accessible. The ACT Government says it aims to enable the delivery of 30,000 new homes across the territory by 2030, supporting a projected population of 700,000 by 2050. For homeowners and prospective buyers, the changes open up more options for multi‑unit development on existing blocks, potentially increasing the stock of medium‑density homes in established suburbs. Tenants and first‑home buyers stand to benefit from a greater choice of properties and, over time, more stable rents as supply catches up with demand.

The government is also progressively removing stamp duty for first‑home buyers and pensioners, a move that directly reduces the upfront cost of purchasing a home. In the 2025‑26 Budget, more than $145 million was committed to kick‑starting the housing pipeline, including $100 million set aside for the Affordable Housing Project Fund. That fund is expected to deliver over 800 affordable rental dwellings from 2026, providing relief for households on moderate incomes.

Budget figures and social housing commitments

Beyond the planning changes, the territory continues to invest in social and affordable housing. The 2025‑26 Budget allocated funding for 85 new public housing dwellings through the Housing Australia Future Fund Facility (HAFFF). Under the National Housing Accord, the ACT has a target of supporting 1,200 social and affordable dwellings by 2029. Additionally, the government plans to release land that will enable the construction of nearly 26,000 new dwellings over five years, a pipeline that aims to keep pace with population growth and moderate house‑price increases.

For Canberra households, these measures mean more potential supply in the near term, which should gradually ease the pressure on household budgets that has built up in recent years. While the reforms do not lower prices overnight, the combination of increased density, direct affordable‑housing investment and targeted stamp‑duty relief is expected to create a more balanced market and give residents more choices about where and how they live.

As the ‘missing middle’ rules settle in, local real‑estate professionals and community housing providers are watching closely to see how quickly development applications come forward. The government has said it will monitor the take‑up of the new planning pathways and adjust settings if necessary, with further policy announcements expected in the coming months.