Episode 5: From roof to home - Airspace development for housing supply and decarbonisation with Warren Livesey

Could the rooftops above us hold a sustainable solution to Australia’s housing crisis and efforts to decarbonise our cities?

In my recent conversation with Warren Livesey we discussed the potential of airspace development in Australia, converting unused rooftops into housing. Our discussion explored the economic and environmental benefits, challenges with heritage buildings, lessons from international practice and the legislative landscape.

Insights from our discussion:

• Sydney has 30M sqm of unused rooftops (150M sqm nationwide)

• CBRE estimates 150,000 new rooftop homes could be built in Sydney

• Airspace development is about 25% cheaper than traditional construction

• Rooftop space is valued at $3,000 per sqm, creating funding for building repairs and upgrades

These figures highlight the scale of the opportunity, but there are also important questions:

• How should heritage protections be managed?
• What risks exist around construction defects and airspace banking?
• Can this model be applied beyond major metropolitan areas into regional centres?

Why it matters:

Airspace development offers gentle density, helping cities address housing shortages and environmental pressures without displacing communities or consuming green space. It may also balance the concerns of both NIMBYs and YIMBYs as seen in Paris where 92% of buildings include rooftop homes supported by policy frameworks.

Do you think rooftop housing could work in Australian contexts? Listen to the full discussion here.