Council zoning and red tape coupled with vocal “not in my backyard” agitators have effectively resulted in 1.3 million fewer homes being built in the past 20 years, according to new analysis.

The report, by former Reserve Bank of Australia economist Tony Richards, says housing supply has expanded at just 4.5% ahead of population growth over the 20 years to 2021.

This compared with a rate of 17% above the population growth in the previous 20 years.

He says approval powers may need to be removed from local councils to facilitate the building of more homes.

He suggests medium-density homes which make better use of land that is already zoned residential could be effective.

“If we care about housing affordability and having a city that better meets the housing needs of its population, we need a planning and approvals system that is easier for home builders to interact with, rather than one that is complex, expensive and corruption-prone.”