A new report suggests more permissive zoning for three-storey development could unlock millions more homes, but those in low-rise inner-eastern neighbourhoods are already sceptical.

Four years on from a national pledge to unlock more housing, only one capital city allows townhouses or three-storey developments on most of its residential land.

A new report suggests more permissive zoning for three-storey development could unlock millions more homes, but those in low-rise inner-eastern neighbourhoods are already…