tag:theconversation.com,2011:/africa/topics/community-housing-29585/articlesCommunity housing – The Conversation2023-03-22T19:42:37Ztag:theconversation.com,2011:article/2009082023-03-22T19:42:37Z2023-03-22T19:42:37ZYes, the 1.5 million Australians getting rent assistance need an increase, but more public housing is the lasting fix for the crisis<figure><img src="https://images.theconversation.com/files/514083/original/file-20230307-20-qfgkut.jpg?ixlib=rb-1.1.0&rect=301%2C0%2C2933%2C1960&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Image: David Kelly</span>, <span class="license">Author provided</span></span></figcaption></figure><p>Australia is in the grip of a housing crisis, with low-income households hit hardest by <a href="https://www.abc.net.au/news/2023-03-11/australian-rental-vacancy-rates-lowest-since-before-pandemic/102079318">rising rents and falling vacancy rates</a>.</p>
<p>Social housing tenants were insulated from the <a href="https://www.corelogic.com.au/news-research/reports/quarterly-rental-review">10.2% jump in advertised private rental prices</a> in 2022. However, the proportion of people in social housing (an umbrella term covering <a href="https://www.ahuri.edu.au/research/brief/what-difference-between-social-housing-and-affordable-housing-and-why-do-they-matter">public and community housing</a>) fell by a fifth, from 4.6% to 3.7%, over the past decade. The Productivity Commission <a href="https://www.pc.gov.au/ongoing/report-on-government-services/2023/housing-and-homelessness/housing">reports</a> social housing waiting lists grew by over 17% in just three years, from 148,520 in 2019 to 174,624 in 2022. </p>
<p>The Albanese government has tabled a <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/HousingPackageofBills">legislative package</a> to address the housing crisis. The flagship $10 billion <a href="https://www.smh.com.au/politics/federal/senate-crossbench-demanding-more-homes-to-pass-10b-housing-fund-20230222-p5cmrt.html">Housing Australia Future Fund</a> is intended to help pay for 30,000 social and affordable housing units to be built in its first five years. That’s far less than the <a href="https://www.ahuri.edu.au/research/brief/what-difference-between-social-housing-and-affordable-housing-and-why-do-they-matter">estimated 216,000-dwelling gap</a> between the level of need for social housing and the current supply.</p>
<p>In the lead-up to the federal budget in May, advocates are pushing for other measures to provide faster relief for low-income households in housing stress. At the forefront are <a href="https://everybodyshome.com.au/new-data-shows-that-its-time-to-fix-rent-assistance/">calls</a> to increase <a href="https://www.dss.gov.au/housing-support/programmes-services/commonwealth-rent-assistance">Commonwealth Rent Assistance</a> (CRA). Some academics have made the case for <a href="https://theconversation.com/the-rent-crisis-is-set-to-spread-heres-the-case-for-doubling-rent-assistance-196810">doubling rent assistance</a>, as have <a href="https://greens.org.au/housing">the Greens</a>.</p>
<p>However, primarily advocating for an increase in rent assistance risks prioritising short-term and partial relief over much-needed systemic change in how Australia delivers affordable housing. Social housing is a more cost-effective and lasting way of ensuring low-income households have affordable and secure housing.</p>
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<a href="https://theconversation.com/the-rent-crisis-is-set-to-spread-heres-the-case-for-doubling-rent-assistance-196810">The rent crisis is set to spread: here's the case for doubling rent assistance</a>
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<h2>Subsidies reflect state shift away from providing housing</h2>
<p>The Commonwealth provides financial assistance to eligible individuals or families in private rentals or community housing (where rents are generally <a href="https://www.ahuri.edu.au/research/brief/what-difference-between-social-housing-and-affordable-housing-and-why-do-they-matter">set below 30% of income</a>). The payment is meant to help people on low to moderate incomes meet the cost of renting a home in the private market.</p>
<p>To be <a href="https://www.servicesaustralia.gov.au/who-can-get-rent-assistance?context=22206">eligible for the program</a>, an individual or family must be receiving a qualifying social security payment and paying rent to a private landlord or community housing provider. The amount of rent assistance <a href="https://www.servicesaustralia.gov.au/how-much-rent-assistance-you-can-get?context=22206">depends on</a> their income, rent and household circumstances.</p>
<p>The program plays a similar role to rental assistance overseas. These programs include the <a href="https://www.gov.uk/housing-benefit/what-youll-get">Housing Benefit in the United Kingdom</a>, the <a href="https://www.gov.ie/en/service/fb3b13-rent-supplement/">Rent Supplement in Ireland</a> and the <a href="https://www.caf.fr/allocataires/aides-et-demarches/droits-et-prestations/logement/les-aides-personnelles-au-logement">Housing Allowance in France</a>. All provide assistance directly to people on low incomes in private rental housing. <a href="https://www.hud.gov/programdescription/cert8">Section 8 in the United States</a> and the <a href="https://www.canada.ca/en/services/benefits/housing.html">Housing Benefit in Canada</a> differ in paying a portion of low-income households’ rent directly to landlords.</p>
<p>These programs are part of a sustained trend away from governments directly providing housing and towards subsidising market participation.</p>
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Read more:
<a href="https://theconversation.com/the-market-has-failed-to-give-australians-affordable-housing-so-dont-expect-it-to-solve-the-crisis-192177">The market has failed to give Australians affordable housing, so don't expect it to solve the crisis</a>
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<h2>Can increasing rent assistance solve housing insecurity?</h2>
<p>Commonwealth Rent Assistance cost the government <a href="https://www.pc.gov.au/ongoing/report-on-government-services/2023/housing-and-homelessness/rogs-2023-partg-overview-and-sections.pdf">about A$4.9 billion</a> in 2021–22. Since eligibility was broadened in 1985, the amount has increased from <a href="https://nla.gov.au/nla.obj-1665769466/view?partId=nla.obj-1671556748#page/n38/mode/1up">$250 million a year, paid to roughly 500,000 people</a>, to nearly $5 billion paid to roughly 1.5 million people today.</p>
<p>By comparison, the National Housing and Homelessness Agreement provides <a href="https://www.pc.gov.au/ongoing/report-on-government-services/2023/housing-and-homelessness">$1.7 billion</a> to the state housing authorities and community housing organisations that provided <a href="https://www.pc.gov.au/ongoing/report-on-government-services/2023/housing-and-homelessness/housing">439,386 tenancies across Australia</a> in 2022. </p>
<p>Despite rent assistance increasing over time, <a href="https://www.pc.gov.au/ongoing/report-on-government-services/2023/housing-and-homelessness">43.9% of recipients</a> are paying more than 30% of their income in rent – the benchmark for <a href="https://www.aihw.gov.au/reports/australias-welfare/housing-affordability">housing stress</a>. So, while government CRA spending is similar to what it spends on social housing on a per-dwelling basis, rent assistance is not as effective at ensuring low-income households have access to affordable and secure housing. This indicates a need to fix the structural problems that are worsening the housing crisis.</p>
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<p>Australia’s rental housing system has issues that increases in rent assistance cannot fix. Most CRA recipients rent in the tightening private market. With so few vacancies and rents soaring, finding a new private rental is <a href="https://www.anglicare.asn.au/publications/rental-affordability-snapshot-2022/">near-impossible</a> for low-income households. </p>
<p>Adding to their difficulties are tenancy laws that fail to offer long-term tenant security. Some states and territories have ended “no grounds” or “no fault” evictions. Even so, renters can still face housing uncertainty <a href="https://www.tenants.org.au/blog/end-fixed-term-evictions-are-unfair-no-grounds-evictions-part-2">when a lease ends</a>.</p>
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<a href="https://theconversation.com/how-5-key-tenancy-reforms-are-affecting-renters-and-landlords-around-australia-187779">How 5 key tenancy reforms are affecting renters and landlords around Australia</a>
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<p>Issues with housing quality in lower-cost private rentals are also widespread. In a recent <a href="https://www.acoss.org.au/media-releases/?media_release=new-report-shows-that-action-is-needed-to-protect-those-on-the-lowest-incomes-from-summer-heat">ACOSS survey</a>, 89% of Centrelink recipients said they couldn’t keep their homes cool in summer and sometimes or always felt unwell as a result. </p>
<p>Renters also often fear eviction or rent increases in response to asking for repairs. As a result, <a href="https://www.aihw.gov.au/reports/australias-welfare/housing-affordability">51% live in homes in need of repairs</a>. </p>
<p>Rent assistance also does little to reduce the <a href="https://www.ahuri.edu.au/sites/default/files/migration/documents/AHURI_Research_Paper_Spatial-disadvantage-why-is-Australia-different.pdf">concentration of disadvantage</a> in certain areas, as shown below. Lower-income households are increasingly pushed to seek housing in cheaper areas, which have poorer access to infrastructure, services and amenities.</p>
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<h2>Lasting solution is to rebuild public housing stock</h2>
<p>A 2020 Australian Housing and Urban Research Institute (AHURI) <a href="https://www.ahuri.edu.au/sites/default/files/migration/documents/Executive-Summary-FR342-Demand-side-assistance-in-Australias-rental-housing-market-exploring-reform-option.pdf">study</a> modelled the effects of increasing the maximum rate of Commonwealth Rent Assistance by 30%. It found this would “improve affordability outcomes” for 623,800 private renters, but at a cost of $1 billion to the federal budget. </p>
<p>No doubt a supplementary housing payment akin to rent assistance will be a useful interim measure. Expanding eligibility and a higher rate would both help struggling households. </p>
<p>However, this should be considered a temporary step towards easing housing stress. It needs to be implemented alongside long-term measures that tackle the root causes of the housing crisis. The best systemic solution is a sustained reinvestment in public housing on a scale that matches the hundreds of thousands who need it.</p><img src="https://counter.theconversation.com/content/200908/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Liam Davies receives funding from the Australian Housing and Urban Research Institute. He is a member of the Planning Institute of Australia.</span></em></p><p class="fine-print"><em><span>Alistair Sisson has received funding from the Australian Council of Social Services, Shelter NSW, QShelter, National Shelter, Mission Australia and Australian Housing and Urban Research Institute. He is a member of Shelter NSW. </span></em></p><p class="fine-print"><em><span>David Kelly receives funding from the Australian Research Council and the Australian Housing and Urban Research Institute. </span></em></p><p class="fine-print"><em><span>Priya Kunjan receives funding from the Australian Research Council. They are a member of the Antipoverty Centre. </span></em></p>Rent assistance can ease rental stress, but it won’t help low-income earners find secure and affordable housing when it’s in such short supply, nor stop disadvantage being concentrated in some areas.Liam Davies, PhD Candidate, Centre for Urban Research, RMIT UniversityAlistair Sisson, Macquarie University Research Fellow, School of Social Sciences, Macquarie UniversityDavid Kelly, Vice Chancellor's Postdoctoral Fellow, RMIT UniversityPriya Kunjan, Postdoctoral Research Fellow, Centre for Urban Research, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1921772022-10-13T23:10:56Z2022-10-13T23:10:56ZThe market has failed to give Australians affordable housing, so don’t expect it to solve the crisis<p>The federal Labor government has promised to craft a <a href="https://theconversation.com/australia-has-been-crying-out-for-a-national-housing-plan-and-new-council-is-a-big-step-towards-having-one-188365">national housing and homelessness plan</a> and to fund <a href="https://anthonyalbanese.com.au/my-plan/safer-and-more-affordable-housing">new social housing</a>, returning Canberra to a field it all but abandoned for a decade. A new Productivity Commission <a href="https://www.pc.gov.au/inquiries/completed/housing-homelessness/report/housing-homelessness-overview.pdf">report</a> is scathing about current arrangements and calls for far-reaching change. </p>
<p>Yet some of the report’s key recommendations rest on faulty assumptions and <a href="https://www.communityhousing.com.au/wp-content/uploads/2022/10/PC-report-briefing-FINAL.pdf">outdated economic thinking</a>. It relies on a misplaced belief that the market will respond to low-income households’ need for affordable housing. Its faith in deregulation as a cure-all is misguided.</p>
<p>The experience of recent decades and a wealth of research evidence instead point to the need to increase government investment in public and community housing.</p>
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<a href="https://theconversation.com/australia-has-been-crying-out-for-a-national-housing-plan-and-new-council-is-a-big-step-towards-having-one-188365">Australia has been crying out for a national housing plan, and new council is a big step towards having one</a>
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<h2>Failed policies must change</h2>
<p>The <a href="https://www.dss.gov.au/housing-support-programs-services-homelessness/national-housing-and-homelessness-agreement">National Housing and Homelessness Agreement</a> provides $1.6 billion a year in federal funding to the states and territories. It’s meant to improve Australians’ access to affordable and secure housing. </p>
<p>However, in its <a href="https://www.pc.gov.au/inquiries/completed/housing-homelessness/report/housing-homelessness-overview.pdf">review of the agreement</a>, the commission judges it ineffective and in need of a major shake-up.</p>
<p>With <a href="https://www.domain.com.au/news/rent-prices-soar-to-record-highs-across-australias-capital-cities-1174319/">rents rising and vacancies falling</a>, low-income private renters “are spending more on housing than they used to”. Some “have little income left after paying their rent”. Almost one in four have less than $36 a day for other essentials. </p>
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<p>The supply of social housing – with rents capped at 25% of tenant income – <a href="https://cityfutures.ada.unsw.edu.au/documents/689/Waithood_final.pdf">has virtually halved in 30 years</a>. Waiting lists <a href="https://www.pc.gov.au/ongoing/report-on-government-services/2022/housing-and-homelessness/housing/rogs-202206-partg-section18-housing-data-tables.xlsx">have surged to 176,000 households</a>. Many more are <a href="https://theconversation.com/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it-105960">estimated</a> to be in need. </p>
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<a href="https://theconversation.com/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it-105960">Australia needs to triple its social housing by 2036. This is the best way to do it</a>
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<p>More people are seeking emergency housing support from homelessness services. And, as the report acknowledges, more are being turned away.</p>
<p>The commission declares “homelessness is a result of not being able to afford housing” and governments must “address the structural factors that lead to housing unaffordability”. As experts in housing policy, economics and urban planning, we agree. Far-reaching reform is long overdue. </p>
<p>The report concludes, for example, that first home-buyer grants and stamp duty concessions are counterproductive and push up prices. It advocates spending these billions on preventing homelessness instead. </p>
<p>The report endorses a “<a href="https://www.ahuri.edu.au/research/brief/what-housing-first-model-and-how-does-it-help-those-experiencing-homelessness">housing first</a>” approach to tackling homelessness – this means housing people unconditionally as the first priority before dealing with their other needs. The report also calls for early intervention programs for “at risk” cohorts, such as people leaving hospitals, prisons or out-of-home care.</p>
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<h2>So what’s wrong with the report?</h2>
<p>The review’s terms of reference, set by the previous government in 2021, meant the commission did not consider how easy credit, negative gearing and the capital gains tax discount drive real estate speculation, inflate prices and lead to inefficient use of housing and land. Coupled with the commission’s embedded faith in market forces, these omissions <a href="https://www.communityhousing.com.au/wp-content/uploads/2022/10/PC-report-briefing-FINAL.pdf">skew its recommendations</a>, especially on social housing.</p>
<p>Instead of more public investment to provide more social housing, the commission urges Canberra to convert its $1.4 billion-a-year support for social housing running costs through the national agreement into <a href="https://www.dss.gov.au/housing-support/programmes-services/commonwealth-rent-assistance">Commonwealth Rent Assistance</a>. It wants to up-end the current system by replacing income-based rents with market rents across social housing. </p>
<p>But most of these renters would be much worse off unless there is a large rent assistance increase across the board. Recognising this, the commission advocates a top-up payment “to ensure housing is affordable and tenancies can be sustained”. Without estimating the cost, it optimistically suggests the states should pick up the tab. </p>
<p>The commission argues this approach would be more equitable for social and private renters. The implicit subsidy from capping social housing tenants’ rents at 25% of income typically exceeds the rent assistance paid to private tenants. Yet reducing social housing tenants to the same level of precarity as private renters seems an odd way to eliminate unfairness.</p>
<p>Enabling low-income Australians to secure decent private rental homes would require a dramatic rise in rent assistance payments, perhaps even to a level equating to the implicit subsidy social housing tenants receive.</p>
<h2>Broader benefits of social housing overlooked</h2>
<p>The commission has neglected the broader benefits of social housing investment that delivers good-quality, well-managed homes that low-income earners can afford. </p>
<p>Decades of mounting rent assistance expenditure have failed to fill the gap created by the lack of a sustained national program of social housing construction since the 1990s. <a href="https://www.ahuri.edu.au/research/final-reports/323">Research</a> shows the shortfall in private dwellings affordable to low-income renters ballooned from 48,000 in 1996 to 212,00 in 2016.</p>
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<a href="https://theconversation.com/australias-social-housing-system-is-critically-stressed-many-eligible-applicants-simply-give-up-183530">Australia's social housing system is critically stressed. Many eligible applicants simply give up</a>
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<p>Simple comparisons between the costs of rent assistance and building affordable homes also ignore the wider community benefits of social housing. <a href="https://housingallaustralians.org.au/whatwedo/give-me-shelter/">SGS Economics</a> recently found the return on social housing investment is “comparable to, or better than” major infrastructure projects. And <a href="https://www.communityhousing.com.au/wp-content/uploads/2022/05/CHIA-Everyones-Home-Wider-Benefits-Analysis-31.3.2022.pdf?x70290">economics professor Andi Nygaard</a> estimates the “large, but avoidable, annual social and economic costs” of the affordable housing shortage will top $1 billion a year by 2036.</p>
<h2>Why planning reform is no panacea</h2>
<p>Underlying much of the commission’s thinking is the idea that the main cause of unaffordable housing is outdated land-use planning rules that restrict new housing supply. </p>
<p>This contention ignores <a href="https://www.jstor.org/stable/44132320#metadata_info_tab_contents">two decades of state planning reforms</a>, including higher-density housing near transport and town centres, simplified rules and accelerated decision-making.</p>
<p>The commission estimates a 1% increase in overall housing supply (implicitly achievable through planning deregulation) could deflate rents by 2.5%. But what makes this scenario implausible is the development industry’s time-honoured – but entirely rational – practice of <a href="https://www.theage.com.au/national/victoria/land-banking-by-big-developers-driving-up-property-prices-report-20220725-p5b486.html">drip-feeding new housing supply</a> to keep prices buoyant. Even if planning relaxation could enable ramped-up construction, it’s hard to imagine that being sustained in the face of any resulting market cooling.</p>
<p>However, the commission argues all private real estate development, regardless of cost, will eventually trickle through to those in need. As properties are traded over time, pricier homes will “filter down” through the market at progressively lower rents.</p>
<p>This view defies <a href="https://theconversation.com/affordable-housing-policy-failure-still-being-fuelled-by-flawed-analysis-92993">evidence</a> that many factors other than planning have profound impacts on housing costs and supply. <a href="https://www.ahuri.edu.au/sites/default/files/documents/2022-09/AHURI-Final-Report-387-Filtering-as-a-source-of-low-income-housing-in-Australia-conceptualisation-and-testing.pdf">New Australian research</a> strongly suggests “filtering” alone will not make homes affordable for lower-income earners. </p>
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Read more:
<a href="https://theconversation.com/affordable-housing-policy-failure-still-being-fuelled-by-flawed-analysis-92993">Affordable housing policy failure still being fuelled by flawed analysis</a>
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<p>None of this is to deny that the planning system could be improved. But if solving housing unaffordability were simply a case of “unleashing planning reforms”, other countries would have managed it long ago. </p>
<p>Australians struggling to pay the rent, or even find a home, deserve a much better response from Australia’s premier economic policy agency, and one that actually reflects the dynamics of the housing system.</p><img src="https://counter.theconversation.com/content/192177/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Hal Pawson receives funding from the Australian Housing and Urban Research Institute, the Australian Research Council, Launch Housing, Queensland Council of Social Service and Crisis UK.</span></em></p><p class="fine-print"><em><span>Bill Randolph currently receives funding from the Australian Research Council. </span></em></p><p class="fine-print"><em><span>Chris Leishman receives funding from the Australian Housing and Urban Research Institute (AHURI), the Economic and Social Research Council (UK-ESRC), Australian and UK state government departments, the National Housing Finance and Investment Corporation (NHFIC). He is affiliated with Housing Choices Australia Ltd, as a non-executive director, and the Urban Studies Journal (for which he is an editor). </span></em></p><p class="fine-print"><em><span>Nicole Gurran receives funding from the Australian Housing & Research Institute and the Australian Research Council. </span></em></p><p class="fine-print"><em><span>Peter Phibbs receives funding from Shelter Tasmania</span></em></p><p class="fine-print"><em><span>Vivienne Milligan receives funding from the Australian Housing and Urban Research Institute Ltd. She is affiliated with Community Housing Industry Association of Australia. </span></em></p><p class="fine-print"><em><span>Peter Mares does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>While the Productivity Commission’s critique of the national housing agreement is justified, its faith in the market is not. The Albanese government is right to invest in building social housing.Hal Pawson, Professor of Housing Research and Policy, and Associate Director, City Futures Research Centre, UNSW SydneyBill Randolph, Professor, City Futures Research Centre, Faculty of the Built Environment, UNSW SydneyChris Leishman, Professor of Property and Housing Economics, University of South AustraliaNicole Gurran, Professor of Urban and Regional Planning, University of SydneyPeter Mares, Lead Moderator, Cranlana Centre for Ethical Leadership, Monash UniversityPeter Phibbs, Director, Henry Halloran Trust, University of SydneyVivienne Milligan, Honorary Professor – Housing Policy and Practice, City Futures Research Centre, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1501612020-11-18T05:27:41Z2020-11-18T05:27:41ZVictoria’s $5.4bn Big Housing Build: it is big, but the social housing challenge is even bigger<figure><img src="https://images.theconversation.com/files/369935/original/file-20201118-21-1svkdp0.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C6016%2C4007&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/new-suburban-homes-currently-under-construction-240195934">Shutterstock</a></span></figcaption></figure><p>The Victorian government has announced the big social housing investment for which housing advocates, industry groups, academics and social service providers have been clamouring for decades. </p>
<p>The A$5.4 billion “Big Housing Build” aims to create over 12,000 homes in four years. Of these, 9,300 will be <a href="https://www.vic.gov.au/homes-victoria-housing-explainer">social housing</a>. The rest will be <a href="https://www.vic.gov.au/homes-victoria-housing-explainer">affordable</a> or market-rate housing. The program will replace 1,100 old <a href="https://www.vic.gov.au/homes-victoria-housing-explainer">public housing</a> units. </p>
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<a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">Why the focus of stimulus plans has to be construction that puts social housing first</a>
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<p>The <a href="https://www.vic.gov.au/homes-victoria-delivering">headline programs include</a>: </p>
<ul>
<li><p>$532 million to build on public land, including <a href="https://www.vic.gov.au/homes-victoria-fast-start-projects">six “fast start” sites</a>, resulting in 500 social housing homes and 540 affordable and market homes</p></li>
<li><p>$948 million to spot-purchase homes, projects in progress or ready-to-build dwellings from the private sector, adding 1,600 social housing and 200 affordable homes</p></li>
<li><p>$1.38 billion for community housing projects to build up to 4,200 homes </p></li>
<li><p>$2.14 billion for “new opportunities” with private sector and community housing providers, producing up to 5,200 homes. </p></li>
</ul>
<figure class="align-center ">
<img alt="Chart showing numbers of homes to be built over four years" src="https://images.theconversation.com/files/369908/original/file-20201117-21-185vadl.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/369908/original/file-20201117-21-185vadl.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=208&fit=crop&dpr=1 600w, https://images.theconversation.com/files/369908/original/file-20201117-21-185vadl.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=208&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/369908/original/file-20201117-21-185vadl.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=208&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/369908/original/file-20201117-21-185vadl.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=261&fit=crop&dpr=1 754w, https://images.theconversation.com/files/369908/original/file-20201117-21-185vadl.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=261&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/369908/original/file-20201117-21-185vadl.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=261&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The Big Housing Build time frame.</span>
<span class="attribution"><a class="source" href="https://www.vic.gov.au/homes-victoria-delivering">Homes Victoria/Victorian government</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<p>Up to $1.25 billion will go into regional Victoria, which is welcome. </p>
<p>In addition, <a href="https://www.dhhs.vic.gov.au/news/social-housing-boost-to-strengthen-our-economy">$498 million was announced</a> in May to refurbish and build public housing. </p>
<h2>Just how big is the Big Housing Build?</h2>
<p>A target of 9,300 new social housing units over four years is definitely “big” by recent Victorian standards. The state’s social housing stock grew by just 12,500 dwellings over the past 15 years – about 830 dwellings a year. </p>
<p>The only comparable investment in Australia in the past two decades was the Commonwealth’s $5.6 billion Social Housing Initiative in 2009. This post-GFC stimulus program built around 19,700 social housing dwellings and repaired 12,000. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/369950/original/file-20201118-19-1sitiuo.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Chart showing number of social housing dwellings completed each year in Australia from 1969-2018" src="https://images.theconversation.com/files/369950/original/file-20201118-19-1sitiuo.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/369950/original/file-20201118-19-1sitiuo.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=420&fit=crop&dpr=1 600w, https://images.theconversation.com/files/369950/original/file-20201118-19-1sitiuo.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=420&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/369950/original/file-20201118-19-1sitiuo.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=420&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/369950/original/file-20201118-19-1sitiuo.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=528&fit=crop&dpr=1 754w, https://images.theconversation.com/files/369950/original/file-20201118-19-1sitiuo.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=528&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/369950/original/file-20201118-19-1sitiuo.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=528&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">Australian Bureau of Statistics</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<h2>Is it enough?</h2>
<p>No. It will take a long time and continued commitments of a similar scale to overcome the massive shortages in Victoria and Australia. </p>
<p>Victoria has a history of spending less on social housing per person than the rest of Australia. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/369958/original/file-20201118-23-hckh4u.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Chart showing net recurrent spending per head of population for states and territories" src="https://images.theconversation.com/files/369958/original/file-20201118-23-hckh4u.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/369958/original/file-20201118-23-hckh4u.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=402&fit=crop&dpr=1 600w, https://images.theconversation.com/files/369958/original/file-20201118-23-hckh4u.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=402&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/369958/original/file-20201118-23-hckh4u.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=402&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/369958/original/file-20201118-23-hckh4u.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=505&fit=crop&dpr=1 754w, https://images.theconversation.com/files/369958/original/file-20201118-23-hckh4u.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=505&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/369958/original/file-20201118-23-hckh4u.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=505&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">Productivity Commission</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>University of Melbourne research estimated a <a href="https://msd.unimelb.edu.au/__data/assets/pdf_file/0004/2876008/Project-3000-Producing-Social-and-Affordable-Housing-on-Government-Land.pdf">164,000 shortfall in social and affordable housing in Victoria</a> in 2018. The Australian Housing and Urban Research Institute estimated an extra <a href="https://www.ahuri.edu.au/research/final-reports/306">166,000 social units would be needed by 2036</a>. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it-105960">Australia needs to triple its social housing by 2036. This is the best way to do it</a>
</strong>
</em>
</p>
<hr>
<p>The Big Housing Build aims to increase social housing dwellings in Victoria from 80,500 to about 89,000 – about 3.5% of all housing. That’s still less than the Australian average of 4.2% and the <a href="http://www.oecd.org/social/affordable-housing-database/housing-policies/">OECD average of 6%</a>. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/369947/original/file-20201118-15-epssj0.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Chart showing social housing stock as percentage of total housing in Victoria and OECD countries." src="https://images.theconversation.com/files/369947/original/file-20201118-15-epssj0.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/369947/original/file-20201118-15-epssj0.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/369947/original/file-20201118-15-epssj0.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/369947/original/file-20201118-15-epssj0.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/369947/original/file-20201118-15-epssj0.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/369947/original/file-20201118-15-epssj0.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/369947/original/file-20201118-15-epssj0.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="http://www.oecd.org/social/affordable-housing-database/housing-policies/">OECD (data from 2018 or more current available)</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<h2>What the scheme gets right</h2>
<p>This program leans heavily on the use of state and local land to reduce the cost of the new housing. My colleagues and I have previously <a href="https://theconversation.com/put-unused-and-lazy-land-to-work-to-ease-the-affordable-housing-crisis-102720">pointed out</a> the large swathes of “lazy” government land across Victoria that could be used for this. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/put-unused-and-lazy-land-to-work-to-ease-the-affordable-housing-crisis-102720">Put unused and 'lazy' land to work to ease the affordable housing crisis</a>
</strong>
</em>
</p>
<hr>
<p>Offering $1.38 billion in competitive capital grants for community housing providers is also <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0025/29059/AHURI-Final-Report-306-Social-housing-as-infrastructure-an-investment-pathway.pdf">substantially more cost-effective for government</a> than models that rely on private finance and provide an operating subsidy to providers. It appears the entire amount will be spent on supporting construction, rather than on creating a seed fund that drip-feeds investment returns into the not-for-profit sector like the <a href="https://www.dhhs.vic.gov.au/victorian-social-housing-growth-fund">Social Housing Growth Fund</a> does. </p>
<p>Victoria is also joining <a href="https://www.cmhc-schl.gc.ca/en/nhs/rapid-housing-initiative">Canada</a> and the <a href="https://www.gov.ca.gov/2020/10/09/governor-newsom-announces-release-of-147-million-in-fourth-round-of-homekey-awards/">state of California</a> in spot-purchasing homes from the private sector in response to COVID-19. This will deliver social housing quickly. It will also support developers in a depressed market while capitalising on lower prices. </p>
<p>The focus on victim-survivors of domestic violence, Indigenous Australians and people living with mental health conditions is welcome too.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/why-more-housing-stimulus-will-be-needed-to-sustain-recovery-148003">Why more housing stimulus will be needed to sustain recovery</a>
</strong>
</em>
</p>
<hr>
<h2>Remaining concerns</h2>
<p><strong>Privatisation of social housing</strong></p>
<p>This announcement continues trends across Australia to shift social housing provision from a state responsibility (public housing) to a more partnership-based model led by community housing providers (community housing). </p>
<p>This approach can leverage substantial contributions from other sectors in the form of land, capital, skills and ideas, producing exemplary outcomes. An example is the <a href="https://www.bsl.org.au/research/our-research-and-policy-work/projects/education-first-youth-foyers-evaluation/">Education First Youth Foyer</a> partnership, which is changing how “at risk” young people access housing, education and other services.</p>
<p>However, complex arrangements between multiple partners, especially when using private finance, can be <a href="https://www.ahuri.edu.au/research/final-reports/306">inefficient and costly</a>. Such partnerships are often <a href="https://www.tandfonline.com/doi/abs/10.1080/02673037.2018.1535054">opportunistic rather than strategic</a>, with priority given to commercial over social outcomes. Community housing residents have less tenancy rights than those in public housing and sometimes pay more of their income on rent. </p>
<p>An emphasis on mixed-tenure developments can lead to cherry-picking of “acceptable” tenants and <a href="https://theconversation.com/voices-of-residents-missing-in-a-time-of-crisis-for-public-housing-93655">destroy tightly knit communities</a>. Previous public housing renewal programs based on private sector involvement left a legacy of <a href="https://www.theage.com.au/national/victoria/social-mix-approach-to-public-housing-is-failing-research-finds-20170616-gwsj3m.html">poorly integrated communities</a> and <a href="https://apo.org.au/sites/default/files/resource-files/2018-06/apo-nid175096.pdf">loss of public land for negligible gains</a> in social housing. We cannot afford to make those mistakes again.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/369964/original/file-20201118-19-9m2o5u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="private garden area at Carlton housing estate redevelopment" src="https://images.theconversation.com/files/369964/original/file-20201118-19-9m2o5u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/369964/original/file-20201118-19-9m2o5u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/369964/original/file-20201118-19-9m2o5u.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/369964/original/file-20201118-19-9m2o5u.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/369964/original/file-20201118-19-9m2o5u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/369964/original/file-20201118-19-9m2o5u.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/369964/original/file-20201118-19-9m2o5u.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Previous Victorian housing estate redevelopments have led to segregated areas of public and private housing.</span>
<span class="attribution"><a class="source" href="https://theconversation.com/why-should-the-state-wriggle-out-of-providing-public-housing-79581">Kate Shaw</a></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/social-mix-in-housing-one-size-doesnt-fit-all-as-new-projects-show-80956">Social mix in housing? One size doesn't fit all, as new projects show</a>
</strong>
</em>
</p>
<hr>
<p><strong>Lack of a strategic plan</strong></p>
<p>The program comes with a new government agency, Homes Victoria, and the promise of a ten-year policy and funding framework. This level of strategic leadership has been lacking in Victoria and will require bipartisan support. Strong partnerships with local councils will also be needed. </p>
<p><a href="https://ojs.library.queensu.ca/index.php/cpp/article/view/13272">Good policy</a> depends on many elements, including:</p>
<ul>
<li>research</li>
<li>housing targets with geographical and population-group breakdowns<br></li>
<li>transparent decision-making</li>
<li>clearly identified funding streams and responsible agencies</li>
<li>shared definitions</li>
<li>monitoring and evaluation mechanisms</li>
<li>clear time frames</li>
<li>integration with other policy areas and levels of government. </li>
</ul>
<p>These elements appear to still be a work in progress for the Big Housing Build. The risk is that this announcement will follow Australia’s pattern of “lumpy” funding and inconsistent policy on social and affordable housing. </p>
<p>Without long-term funding streams, providers find it hard to to scale up, make strategic decisions, invest in internal capacity and plan development pipelines. Without overarching strategy and monitoring, Victoria’s lacklustre history of social housing provision may continue. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/ten-lessons-from-cities-that-have-risen-to-the-affordable-housing-challenge-102852">Ten lessons from cities that have risen to the affordable housing challenge</a>
</strong>
</em>
</p>
<hr>
<p><strong>Reduced community engagement</strong></p>
<p>Planning approvals for larger social housing developments will be streamlined. In many cases, the state will take over final decision-making from local government. This will reduce opportunities for community consultation and the state government will need to work hard to ensure high-quality design is integrated into developments. </p>
<h2>Where to from here?</h2>
<p>As COVID-19 has made clear, everyone needs a home and society benefits from caring for those in need. The speed with which governments moved to house rough sleepers, a <a href="https://theconversation.com/ban-on-sleeping-rough-does-nothing-to-fix-the-problems-of-homelessness-71630">seemingly intractable problem before COVID</a>, shows homelessness and severe housing stress can be overcome. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-need-to-house-everyone-has-never-been-clearer-heres-a-2-step-strategy-to-get-it-done-137069">The need to house everyone has never been clearer. Here's a 2-step strategy to get it done</a>
</strong>
</em>
</p>
<hr>
<p>The Big Housing Build is not perfect and will not solve Victoria’s huge housing challenges on its own. It must be the start of regular cycles of funding to sustain social housing in Victoria. It should also be tied to longitudinal evaluation of outputs and an aligned research agenda to shape best-practice outcomes. </p>
<p>And powers-that-be in Canberra, the list of partners in this program has a large federal-government-shaped gap. When are you going to come to the party?</p><img src="https://counter.theconversation.com/content/150161/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Katrina Raynor is affiliated with the Hallmark Research Initiative for Affordable Housing at the University of Melbourne. She was previously affiliated with the Transforming Housing Research Network, which received funding from the Lord Mayors Charitable Foundation, Brotherhood of St Laurence and Launch Housing. </span></em></p>The shortfall of social housing has built up over decades. Even after the building program is complete, the gap between housing supply and the numbers on waiting lists will still be huge.Katrina Raynor, Postdoctoral Research Fellow, Hallmark Research Initiative for Affordable Housing, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1371622020-05-11T20:02:06Z2020-05-11T20:02:06ZCoronavirus lays bare 5 big housing system flaws to be fixed<figure><img src="https://images.theconversation.com/files/333606/original/file-20200508-49573-h97pjp.jpg?ixlib=rb-1.1.0&rect=21%2C35%2C4619%2C3110&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Australians had become used to walking past rough sleepers. Policymakers too, seemed unmoved by the people huddled in doorways or sheltering in parks under plastic sheets. That’s until the COVID-19 pandemic rendered rough sleepers visible, because we’ve all been told to stay home and anyone without a home presents a risk of passing on the virus.</p>
<p>State governments have suddenly found tens of millions of dollars to create <a href="https://www.sbs.com.au/news/homeless-get-access-to-victorian-aged-care-facilities-to-recover-from-coronavirus">pop-up accommodation</a> or book rough sleepers into <a href="https://www.abc.net.au/radionational/programs/backgroundbriefing/hotel-coronavirus-homelessness-pandemic/12177452">hotel rooms</a>. But such short-term fixes also highlight the entrenched failings of Australia’s housing system. This crisis has laid bare five major vulnerabilities.</p>
<h2>1. Thousands are sleeping rough</h2>
<p>Before the pandemic, street homelessness affected about 8,000 people on any given night, as indicated by census data. But this is almost certainly an underestimate. </p>
<p><a href="https://www.bbc.com/news/uk-england-51398425">Recent UK research</a> showed the number of people sleeping rough in any given year was five times as many as captured in census-type snapshots. There’s no reason to think it’s much different in Australia. </p>
<p><a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/2049.0">Many more people</a> are on the fringe of rough sleeping — couch surfing, for example.</p>
<h2>2. More than a million in rental stress</h2>
<p>Our second housing system vulnerability is the body of people – far larger again – living in insecure and unaffordable rental housing. Even before this current crisis, housing costs had pushed around <a href="https://www.palgrave.com/gp/book/9789811507793">1.3 million Australians</a> into poverty. After paying rent they didn’t have enough money left for essentials like food and electricity.</p>
<p>Now many of these renters will have lost jobs or work hours. Government schemes like JobKeeper and JobSeeker will temporarily help only some — <a href="https://www.theguardian.com/australia-news/2020/apr/23/australias-coronavirus-relief-exclusions-prove-we-are-not-all-in-this-together">temporary migrants</a> and many <a href="https://thenewdaily.com.au/finance/work/2020/04/07/casual-workers-jobkeeper-payment/">casual workers</a> are excluded. </p>
<p>Measures like the <a href="https://thenewdaily.com.au/finance/property/2020/04/24/australia-tenancy-laws-coronavirus/">moratorium on evictions</a> are welcome (provided they prove <a href="https://www.tenants.org.au/blog/what-you-need-know-covid-19-evictions-and-rents">robust</a>). The same goes for mortgage pauses by the banks, which might help property owners avoid having to sell if tenants can’t afford the rent. </p>
<p>But these are only stopgap efforts.</p>
<h2>3. A shrunken social housing sector</h2>
<p>The third vulnerability is the shrivelled state of social housing, where rents are fixed at an affordable share of income. Relative to population, the <a href="https://www.palgrave.com/de/book/9789811507793">number of properties let</a> by public housing agencies and community housing providers has halved since 1991. </p>
<p>Across most of Australia, waiting lists for social housing are <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/priority-groups-and-wait-lists#pg4">huge</a>. In most jurisdictions the sector lacks the capacity to offer long-term housing to all the rough sleepers and others currently in hotels. Only through emergency unit acquisitions or head-leasing will this be possible.</p>
<h2>4. A mountain of debt</h2>
<p>Our fourth housing system vulnerability is housing-related debt. If the pandemic-induced downturn persists and unemployment stays high, this mountain of debt could make the recession much worse. </p>
<p>In the early 1990s household debt equated to about 70% of disposable household income. In March 2019, the <a href="https://www.rba.gov.au/speeches/2019/sp-ag-2019-03-20.html#household-debt">RBA warned</a> the debt-to-income ratio had risen to 190%. The increase was mostly due to increased borrowing to buy homes and investment properties. </p>
<p>Even before the pandemic, <a href="https://www.afr.com/companies/financial-services/one-in-five-households-facing-mortgage-stress-despite-low-rates-20191223-p53mfn">one in five mortgage holders were struggling</a> to meet repayments. If large scale unemployment were to force mass property sales, this could compound the crash as homes flood the market.</p>
<p>We know from the GFC experience in the USA, Ireland, Spain and elsewhere that a sharp fall in property prices can have severe and long-lasting economic consequences that worsen inequality. In the USA, <a href="https://provisionaluniversity.wordpress.com/2016/02/01/vulture-landlords-an-in-depth-interview-with-desiree-fields/">vulture landlords stepped in</a> to buy up large numbers of distressed properties and create rental property empires. Renting from owners of this kind is not an attractive prospect.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/333624/original/file-20200508-49556-2nsfv4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/333624/original/file-20200508-49556-2nsfv4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/333624/original/file-20200508-49556-2nsfv4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=399&fit=crop&dpr=1 600w, https://images.theconversation.com/files/333624/original/file-20200508-49556-2nsfv4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=399&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/333624/original/file-20200508-49556-2nsfv4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=399&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/333624/original/file-20200508-49556-2nsfv4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=501&fit=crop&dpr=1 754w, https://images.theconversation.com/files/333624/original/file-20200508-49556-2nsfv4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=501&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/333624/original/file-20200508-49556-2nsfv4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=501&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Falling prices as the market was flooded by properties whose owners had defaulted on loans deepened the GFC impacts on the US.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<h2>5. An unbalanced housing system</h2>
<p>Our housing system is vulnerable to shocks because it is unbalanced, our fifth system frailty. Residential construction depends almost entirely on private developers building for sale to individual buyers. </p>
<p>These buyers are highly sensitive to the outlook for property values. The resulting herd mentality magnifies booms and slumps – a particular problem when they are totally dominant in the market. A magnified downturn can bring residential construction to a grinding halt. And while quick to shed labour, construction is slow to re-employ because of risk and long project lead times.</p>
<p>Construction normally employs more than 1 million Australians with <a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">a range of skill levels</a>. It generates many more jobs through the building materials supply chain as well as in real estate, property management and financial services. This helps to explain why Master Builders Australia and the building union CFMEU have <a href="https://cg.cfmeu.org.au/news/cfmeu-and-mba-call-10b-social-housing-stimulus-package">united in a call</a> to government to invest in building 30,000 social housing units as part of Australia’s post-COVID recovery.</p>
<h2>The need for a national strategy</h2>
<p>The housing system needs more than a one-off crisis boost. The pandemic policy jolt is an opportunity to put Australia’s housing on more stable footings through a Commonwealth-led bipartisan, long-term, national housing strategy.</p>
<p>A key part of this should be routine social housing construction on a scale that at least keeps pace with population growth. That’s up to <a href="http://www.ahuri.edu.au/research/final-reports/306">15,000 homes a year</a> – around five times the current number. This may sound ambitious, but it’s below the <a href="https://www.aph.gov.au/DocumentStore.ashx?id=99cfa3f6-858f-467d-91a9-31e384534a5e&subId=31798">levels regularly achieved</a> between the mid-1950s and the mid-1970s.</p>
<p>And this doesn’t have to mean a return to the post-war approach when state authorities provided public housing. Not-for-profit <a href="https://www.communityhousing.com.au/about-us/">community housing organisations</a> can now take on the major new supply role. </p>
<p>But we do need a post-war level of ambition. Government has two immediate roles to play in linking housing to a post-pandemic recovery. </p>
<p>The first is to help avoid a house price crash that will deepen an economic slump. Co-ordinating action with mortgage lenders could help minimise repossessions and avoid a glut of discounted properties on the market. </p>
<p>Governments may also need to take on distressed projects from private developers. The New South Wales government has <a href="https://www.smh.com.au/politics/nsw/nsw-government-may-buy-up-spare-housing-in-500-million-stimulus-plan-20200427-p54noc.html">already flagged</a> such action.</p>
<p>The second immediate role for government is to support residential construction as the motor of economic revival by investing in social housing as the <a href="https://www.communityhousing.com.au/wp-content/uploads/2020/05/SHARP-Program.pdf?x59559">central plank of a stimulus package</a>. Government-owned sites and developer-owned landbanks can be used to kick-start activity more quickly than other major infrastructure projects. Community housing providers – especially some larger <a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">faith-based players</a> – also have shovel-ready sites.</p>
<p>These should be the first steps in the national strategy, which should aim to diversify both housing supply and demand. </p>
<p>Alongside a greater role for community housing, this could include a <a href="https://cityfutures.be.unsw.edu.au/research/projects/how-can-australian-build-rent-product-contribute-urban-renewal-and-affordable-housing-supply/">build-to-rent</a> sector commissioned by institutional investors to build market rental blocks as long-term, income-generating assets. This would benefit tenants and the economy, by smoothing the <a href="https://theconversation.com/build-social-and-affordable-housing-to-get-us-off-the-boom-and-bust-roller-coaster-113113">boom-bust cycle</a> of residential construction.</p>
<p>As we argue in our <a href="https://www.textpublishing.com.au/books/no-place-like-home-repairing-australia-s-housing-crisis">recent</a> <a href="https://www.palgrave.com/gp/book/9789811507793">books</a>, a national housing strategy must also thoroughly overhaul national, state and territory tax settings. Many of these have greater housing policy impacts than any spending program. </p>
<p>Tax reform could make our housing system fairer and more efficient. It could dampen the speculation that fuels rising prices and debt, while raising the revenue we need to provide decent, affordable housing for all Australians.</p>
<hr>
<p><em>Peter Mares hosts a new series, Housing the Australian Nation, on <a href="https://www.abc.net.au/radionational/programs/earshot/">Earshot</a> on ABC Radio National from May 30, which features an interview with Hal Pawson.</em></p><img src="https://counter.theconversation.com/content/137162/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Hal Pawson receives funding from the Australian Research Council, the Australian Housing and Urban Research Institute (AHURI), Launch Housing and CRISIS UK.</span></em></p><p class="fine-print"><em><span>Peter Mares sits on the research committee of the Centre for Policy Development</span></em></p>The pandemic has brought to a head deep-rooted problems with how housing is provided in Australia. Fortunately, the solutions can play a central role in the national recovery process.Hal Pawson, Professor of Housing Research and Policy, and Associate Director, City Futures Research Centre, UNSW SydneyPeter Mares, Lead Moderator, Cranlana Centre for Ethical Leadership, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1334362020-03-12T19:03:28Z2020-03-12T19:03:28ZThe many faces of social housing – home to 1 in 10 Australians<p>Social housing is part of the lives of a surprising number of Australians. On any one night in Australia, just over <a href="https://www.ahuri.edu.au/policy/ahuri-briefs/census-shows-falling-proportion-of-households-in-social-housing">4% of households rent social housing</a>. Yet it has housed many more people than this for brief, and sometimes repeated, periods. We estimate up to 10% of Australians have called social housing home at some time in the past 20 years.</p>
<p>Throughout the postwar era, Australians have used social housing in various ways. Social housing can be:</p>
<ul>
<li><p>a place to raise a working family</p></li>
<li><p>a “springboard” to owning a home</p></li>
<li><p>a brief “safety net” to escape domestic violence</p></li>
<li><p>a stable home following homelessness. </p></li>
</ul>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/as-simple-as-finding-a-job-getting-people-out-of-social-housing-is-much-more-complex-than-that-128006">As simple as finding a job? Getting people out of social housing is much more complex than that</a>
</strong>
</em>
</p>
<hr>
<p>Today the Australian Housing and Urban Research Institute (<a href="https://www.ahuri.edu.au/about-us/who-we-are-and-what-we-do">AHURI</a>) releases a <a href="https://www.ahuri.edu.au/research/final-reports/326">major commissioned study</a> tracking the pathways of people into and out of social housing from 2000 to 2015. Our analysis, using national data, provides many interesting insights into how Australians use social housing.</p>
<p>Try to picture a “typical” social housing tenant. You might imagine a single mother, or an elderly lady who has lived and raised family there. Or do you see a single man who has fallen out of the workforce? Regardless of whom we picture, most of us will probably see social housing as an end-point in their housing journey – a stable home. </p>
<p>The truth is Australians use social housing in several very different ways. A home for life is just one of those ways. </p>
<h2>Who uses social housing?</h2>
<p>When we look over time (in this case 15 years) at everyone who has lived in social housing, we find only about a third of people lived continuously in the tenure. Almost another third entered social housing in that time and remained there. But a surprisingly large proportion entered and left the sector either once or multiple times. </p>
<p>So social housing represents different things – a long-term home, a springboard, a safety net – to different people.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/is-social-housing-essential-infrastructure-how-we-think-about-it-does-matter-110777">Is social housing essential infrastructure? How we think about it does matter</a>
</strong>
</em>
</p>
<hr>
<p>The likely role of social housing depends a lot on what else is going on in people’s lives. When we compared characteristics of all people who were “social renters” at some time in the 15 years, we found:</p>
<ul>
<li><p>the group who lived continuously in social housing were generally older (average age 60) and more likely to be female than people on other housing pathways, with age pension and disability benefits the most common types of government assistance received</p></li>
<li><p>those who left social housing (and never returned) were the second-oldest group (average age 50), also predominantly female, with unemployment and disability support the most commonly received government assistance</p></li>
<li><p>the group who entered (and then remained in) social housing was distinct in its high proportion of refugees and other people born overseas, with unemployment and disability support again the most common government assistance</p></li>
<li><p>more than a quarter of all pathways could be described as more transitory, involving multiple entrances or exits. This group as a whole was younger, more likely to be Australian-born and more likely to be Indigenous than the other groups. It was also distinct in the dominance of unemployment benefits among the forms of government assistance received. </p></li>
</ul>
<h2>Social housing has broad benefits</h2>
<p>The people who enter social housing, and their patterns of behaviour, are nowhere near as predictable as many of us thought. There are many pathways. Only about one-third are long-term tenancies. </p>
<p>Despite the shrinkage of this sector, and a relative lack of investment in it, social housing does much more than simply house the elderly, sick and most disadvantaged people in our society. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/319788/original/file-20200311-116275-1c67o3y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/319788/original/file-20200311-116275-1c67o3y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/319788/original/file-20200311-116275-1c67o3y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=433&fit=crop&dpr=1 600w, https://images.theconversation.com/files/319788/original/file-20200311-116275-1c67o3y.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=433&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/319788/original/file-20200311-116275-1c67o3y.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=433&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/319788/original/file-20200311-116275-1c67o3y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=544&fit=crop&dpr=1 754w, https://images.theconversation.com/files/319788/original/file-20200311-116275-1c67o3y.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=544&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/319788/original/file-20200311-116275-1c67o3y.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=544&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Social housing (public and community housing) as a proportion of all households in Australia.</span>
<span class="attribution"><a class="source" href="https://www.ahuri.edu.au/policy/ahuri-briefs/census-shows-falling-proportion-of-households-in-social-housing">AHURI, using ABS Census data, 1981-2016</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc-sa/4.0/">CC BY-NC-SA</a></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australias-social-housing-policy-needs-stronger-leadership-and-an-investment-overhaul-119097">Australia's social housing policy needs stronger leadership and an investment overhaul</a>
</strong>
</em>
</p>
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<p>More than one in four people who enter social housing use it as a launchpad to more stable employment and market housing. Clearly, then, the sector plays a valuable role in stabilising lives and raising prosperity. These important functions should be safeguarded in the future as pressures on the sector continue to grow.</p>
<p>Overall, one of the things this new work gives us is a long view – hopefully a different view – of the social housing sector and its role over time in Australian lives. It reminds us the impact of social housing is felt well beyond the 4% of the population who may live in it at any one time. </p>
<p>Our social housing infrastructure has certainly been part of the housing experience of many Australians or their parents. We therefore underestimate the effectiveness of social housing as a springboard into home ownership, or a temporary safety net, when we only think of the 4% it currently houses.</p><img src="https://counter.theconversation.com/content/133436/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Emma Baker receives funding from the Australian Research Council and the Australian Housing and Urban Research Institute. She is affiliated with Habitat for Humanity. </span></em></p><p class="fine-print"><em><span>Chris Leishman receives funding from the Australian Housing and Urban Research Institute, and the UK's Economic and Social Research Council. He is a Director (board member) of Housing Choices Australia.</span></em></p><p class="fine-print"><em><span>Rebecca Bentley receives funding from the Australian Research Council, National Health and Medical Research Council, Australian Housing and Urban Research Institute.</span></em></p>A home, a springboard, or a safety net? New research finds a surprisingly large number of Australians have lived in social housing since 2000, using it in several very different ways.Emma Baker, Professor of Housing Research, School of Architecture and Built Environment, University of AdelaideChris Leishman, Professor of Housing Economics, University of AdelaideRebecca Bentley, Professor of Social Epidemiology, Centre for Health Equity, Melbourne School of Population and Global Health, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1280062019-12-11T18:57:08Z2019-12-11T18:57:08ZAs simple as finding a job? Getting people out of social housing is much more complex than that<p>A <a href="https://www.aph.gov.au/Parliamentary_Business/Hansard/Hansard_Display?bid=chamber/hansardr/3d235a1c-91f8-4a9a-92b6-7ac7922cad16/&sid=0088">private member’s bill</a>, moved by Labor MP Josh Burns, recently called on the Australian government “to help build more affordable homes” in response to the <a href="https://theconversation.com/homelessness-soars-in-our-biggest-cities-driven-by-rising-inequality-since-2001-117833">growing homelessness crisis</a>. A premise of the bill is that a lack of social housing is a major cause of homelessness and increasing the supply is a key element of solving the problem. The government’s <a href="https://www.aph.gov.au/Parliamentary_Business/Hansard/Hansard_Display?bid=chamber/hansardr/3d235a1c-91f8-4a9a-92b6-7ac7922cad16/&sid=0086">response</a> was that one solution is to encourage social housing tenants to find paid work, so they can move into private rental housing.</p>
<p>The problem with this argument is it overlooks the major barriers to entering the private rental market for low-income households. It also does not excuse the failure to invest adequately in building more social housing.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australias-social-housing-policy-needs-stronger-leadership-and-an-investment-overhaul-119097">Australia's social housing policy needs stronger leadership and an investment overhaul</a>
</strong>
</em>
</p>
<hr>
<p>There is certainly a shortage of social housing. About 140,600 applicants were on the waiting list for public housing and 8,800 households were wait-listed for state-owned-and-managed Indigenous housing <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/priority-groups-and-wait-lists#pg4">as at June 30 2018</a>. Another 38,300 applicants were waiting for mainstream community housing <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2018/contents/priority-groups-and-wait-lists">as at June 30 2017</a> (the most recent publicly <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/priority-groups-and-wait-lists#pg4">available data</a>). Together, these tenure types comprise most of Australia’s social housing. </p>
<p>These figures exclude people temporarily suspended from waiting lists (e.g. social housing applicants in New South Wales who take up <a href="https://www.facs.nsw.gov.au/housing/policies/rent-choice-policy">Rent Choice private rental assistance</a>), who need social housing but <a href="https://www.monash.edu/news/articles/women-on-temporary-visas-vulnerable-to-family-violence2">are ineligible</a> and others not on waiting lists but still in need, such as <a href="https://www.ahuri.edu.au/research/final-reports/306">rough sleepers and very low-income households in housing stress</a>.</p>
<p>Tenure in social housing was once effectively <a href="https://www.ahuri.edu.au/research/final-reports/316">unlimited</a> provided tenants paid their rent and maintained their property. But waiting list pressures have led to a new approach. In his response to the private member’s bill, the assistant minister for community housing, homelessness and community services, Luke Howarth, <a href="https://www.aph.gov.au/Parliamentary_Business/Hansard/Hansard_Display?bid=chamber/hansardr/3d235a1c-91f8-4a9a-92b6-7ac7922cad16/&sid=0086">argued</a>:</p>
<blockquote>
<p>There needs to be more responsibility […] from state governments to help people who are able to get back into the workplace to then move on from social housing so that it will provide a flow-through effect for people currently on the waiting list.</p>
</blockquote>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/focus-on-managing-social-housing-waiting-lists-is-failing-low-income-households-120675">Focus on managing social housing waiting lists is failing low-income households</a>
</strong>
</em>
</p>
<hr>
<h2>Market realities</h2>
<p>Howarth’s argument is consistent with much state and territory policy. For example, the NSW <a href="http://www.socialhousing.nsw.gov.au/?a=348442">Future Directions policy</a> explicitly commits to “upskilling” tenants to enable them to live in private rental housing. </p>
<p>Tacitly overlooked in such “pathways” policies are the barriers to entering private rental. Across Australia <a href="https://www.anglicare.asn.au/our-work/research-reports/the-rental-affordability-snapshot">less than 26%</a> of private rental properties are affordable for households on a minimum wage. Less than 4% are affordable and appropriate for households on income support. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/growing-numbers-of-renters-are-trapped-for-years-in-homes-they-cant-afford-125216">Growing numbers of renters are trapped for years in homes they can't afford</a>
</strong>
</em>
</p>
<hr>
<p><a href="https://www.domain.com.au/news/tip-of-the-iceberg-complaints-alleging-discrimination-in-rental-market-rise-20170716-gxac9d/">Prejudice</a> and <a href="https://www.sheltersa.asn.au/site/wp-content/uploads/190430-Shelter-SA-Research-Report-on-Racial-Discrimination-in-Private-Rental-FINAL.pdf">discrimination</a> against tenants perceived to pose a greater risk to landlords’ investments make access even more difficult. </p>
<p>Low-income households in the private rental market also face insecure tenure. “No-grounds terminations” are permitted in all states and territories except Tasmania and, from July 1 2020, Victoria (except at the end of the first fixed term). </p>
<p>Under “no grounds” termination, landlords can evict tenants for no stated reason at the end of a fixed-term lease and at any time on a periodic lease. Fear of retaliatory eviction makes it <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf">less likely tenants will assert their legal rights</a>.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/an-open-letter-on-rental-housing-reform-103825">An open letter on rental housing reform</a>
</strong>
</em>
</p>
<hr>
<h2>Employment as a pathway</h2>
<p>Even if private rental access and affordability were certain, many social housing tenants are not in a position to undertake employment. In 2017–18, about <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/summary">398,900 households were in social housing in Australia</a>. Many of them relied on the disability support pension (21%) or the age pension (19%) as their main source of income. </p>
<p>Long-standing <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/priority-groups-and-wait-lists">targeting</a> of social housing to greatest need means tenants are disproportionately likely to have low educational qualifications and limited marketable skills. They face considerable employment challenges, not the least of which is <a href="https://www.ahuri.edu.au/research/final-reports/166">stigmatisation</a>. </p>
<p>It is also worth considering what “employment” realistically looks like for social housing tenants seeking to enter or re-enter the workforce. It’s likely to be as <a href="https://theconversation.com/labour-in-vain-casualisation-presents-a-precarious-future-for-workers-8181">casualised labour</a> in the <a href="https://theconversation.com/uber-might-not-take-over-the-world-but-it-is-still-normalising-job-insecurity-127234">gig economy</a>. </p>
<p>As social policy researchers Greg Marston and Catherine McDonald have <a href="https://www.ingentaconnect.com/content/tpp/ben/2007/00000015/00000003/art00003">argued</a>, we cannot assume exiting welfare for the labour market leads automatically to social and economic security. Precarious, intermittent, low-wage employment does not offer a sound basis for sustaining a private tenancy.</p>
<p>Of course, social housing tenants should be supported to find work and to move out of social housing if they want to. But the evidence would suggest tenant choice is not the motivation here. Rather than creating “pathways” as a way of managing social housing waiting lists, governments would have greater impact on the housing crisis if they invested much more in social housing. </p>
<p>Between 2011 and 2016, <a href="https://www.launchhousing.org.au/site/wp-content/uploads/2018/05/LaunchHousing_AHM2018_Report.pdf">government spending on social housing decreased 7%</a>, from A$1.42 billion to A$1.32 billion. This has contributed to a <a href="https://theconversation.com/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it-105960">backlog of 433,000 dwellings</a> in Australia’s social housing supply. That’s predicted to grow to a shortage of 727,000 dwellings by 2036. </p>
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Read more:
<a href="https://theconversation.com/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it-105960">Australia needs to triple its social housing by 2036. This is the best way to do it</a>
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<p>In addition to providing <a href="https://cityfutures.be.unsw.edu.au/documents/522/Modelling_costs_of_housing_provision_FINAL.pdf">more social and affordable</a> housing, governments must act on the systemic problems in the private rental market. This includes developing <a href="https://everybodyshome.com.au/our-campaign/a-better-deal-for-renters/">nationally consistent tenancy legislation</a> to provide more protection for tenants, including against no-grounds evictions, and providing the resources to properly enforce such laws.</p><img src="https://counter.theconversation.com/content/128006/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Chris Hartley receives funding from the Department of Communities and Justice and Homelessness NSW. Chris is on the Operation's Group for the Everybody's Home Campaign and the Executive Team of The Constellation Project. </span></em></p><p class="fine-print"><em><span>Kathleen Flanagan receives funding from the Australian Housing and Urban Research Institute and the Australian Research Council. </span></em></p>Helping tenants find work supposedly creates a pathway into private rental housing, freeing up social housing for others. Private rental costs and the situations of many tenants make that unrealistic.Chris Hartley, Research Fellow (Housing and Homelessness) at the Centre for Social Impact, UNSW SydneyKathleen Flanagan, Research Fellow & Deputy Director, HACRU, University of TasmaniaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1248752019-10-10T00:55:12Z2019-10-10T00:55:12ZShh! Don’t mention the public housing shortage. But no serious action on homelessness can ignore it<figure><img src="https://images.theconversation.com/files/296150/original/file-20191009-3887-uebrcn.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The evidence shows permanent housing, like the Fitzroy housing estate, is the best and most cost-effective way to reduce homelessness.</span> <span class="attribution"><span class="source">Kate Shaw</span>, <span class="license">Author provided</span></span></figcaption></figure><p>Today, October 10, is <a href="http://www.worldhomelessday.org/">World Homeless Day</a>. Next week the <a href="https://chp.org.au/">Council to Homeless Persons</a> will convene the <a href="https://chpconference.com.au/">Victorian Homelessness Conference</a> to discuss options for ending homelessness. On <a href="https://chpconference.com.au/program">the program</a> are presentations and discussions about Aboriginal homelessness, youth homelessness, the links between mental health and homelessness, the NDIS, and a debate about tiny homes. </p>
<p>Nowhere is there any mention of, or provision for discussion about, public housing. </p>
<p>This is despite the fact that providing public and community housing (together, social housing) is the single most effective means to get people out of homelessness, and that nearly <a href="https://www.housing.vic.gov.au/victorian-housing-register">43,000 households</a> are on the state waiting list, and that Housing Minister Richard Wynne – who has primary responsibility for social housing – will be opening the conference.</p>
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Read more:
<a href="https://theconversation.com/focus-on-managing-social-housing-waiting-lists-is-failing-low-income-households-120675">Focus on managing social housing waiting lists is failing low-income households</a>
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<p>The program does include a session on “How to win friends and influence homelessness policy”. The title may offer a clue to why housing advocacy groups no longer mention the actual housing solution – public housing. Interestingly, the keynote speaker, Dr Stephen Gaetz of the <a href="https://www.homelesshub.ca/about-us/about-the-coh">Canadian Observatory on Homelessness</a>, will discuss among other things “underinvestment in social housing” in his own country. </p>
<p>The Canadians appear to be less anxious about upsetting their governments and the development industry. Earlier this year, British Columbia’s minister for housing, Selina Robinson, <a href="https://www.sfu.ca/continuing-studies/about/program-units/city-program/blog/posts/david-madden-home-or-commodity-transformation-of-housing-and-its-discontents.html">said</a> of Vancouver’s housing affordability crisis that “this is not a supply problem: it is a right supply problem”. </p>
<p>Robinson was directly challenging the mantra that increasing housing supply is the solution to unaffordable housing. She was arguing for direct investment in housing specifically for low-income households. </p>
<h2>Housing policy is the problem</h2>
<p>Public housing supply has lagged behind housing need for decades in Australia. Australia needs to build 100 public housing dwellings a day for 20 years to provide for the people in the most urgent housing need – typically the bottom two-fifths of income groups – according to a <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0025/29059/AHURI-Final-Report-306-Social-housing-as-infrastructure-an-investment-pathway.pdf">recent study</a>. This is achievable but would require a significant change in current policy. </p>
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Read more:
<a href="https://theconversation.com/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it-105960">Australia needs to triple its social housing by 2036. This is the best way to do it</a>
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<p>Public housing policy in Victoria has become craven. Productivity Commission <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2019/housing-and-homelessness">statistics for 2019</a> show every state in Australia except Victoria and South Australia has increased net spending on social housing since 2014-15. Since 2016 Victoria has transferred more public housing stock to the private sector than any other state. The state has <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2019/housing-and-homelessness">fewer public housing dwellings today than ten years ago</a>. </p>
<p>In a critique of the management of public housing, the Victorian auditor-general was scathing about a lack of long-term vision. The <a href="https://www.audit.vic.gov.au/sites/default/files/20170621-Public-Housing.pdf">report</a> described the current approach as “disjointed, poorly communicated and lacking in a comprehensive understanding of asset performance”.</p>
<p>The major policy response has been the <a href="https://www.vic.gov.au/sites/default/files/2019-08/Homes-for-Victorians.pdf">Homes for Victorians</a> initiative. Its centrepiece is the redevelopment of inner-city public housing estates in Melbourne. The objective is to shift public housing provision to the private sector under the cover of renewal. No effort has been made to meet the obvious demand on the public housing wait list.</p>
<p>A Victorian <a href="https://www.parliament.vic.gov.au/images/stories/committees/SCLSI/Public_Housing_Renewal_Program/LSIC_58-11_PHRP_Text_WEB.pdf">parliamentary inquiry</a> in 2018 and <a href="https://cur.org.au/cms/wp-content/uploads/2019/05/understanding-the-assumptions-and-impacts-of-the-phrp-final-report-28-5-19.pdf">research study</a> in 2019 raised serious concerns about the renewal program, its ability to meet the needs of vulnerable people and its very objectives.</p>
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Read more:
<a href="https://theconversation.com/governments-have-no-excuse-for-keeping-public-in-the-dark-on-public-housing-deals-90847">Governments have no excuse for keeping public in the dark on public housing deals</a>
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<p>A number of public housing estates – Northcote, North Melbourne, Preston, Heidelberg and Ascot Vale – have already been partially or fully emptied of people. Demolition has begun at <a href="https://www.facebook.com/groups/242781149582121/">North Melbourne</a>. Private developer MAB has been awarded the contract to develop these estates and sell the new dwellings to private owners. </p>
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<span class="caption">Walker Street Estate in Northcote is scheduled for demolition in March 2020.</span>
<span class="attribution"><span class="source">Celeste de Clario</span>, <span class="license">Author provided</span></span>
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<p>The great majority of dwellings on these estates will be privately owned. The rest will be given to the community housing sector. </p>
<p>Community housing providers are required to take 75% of their clients from the <a href="https://www.housing.vic.gov.au/victorian-housing-register">Victorian Housing Register</a>. However, rents can be higher and the increasing corporatisation of the sector pushes fundamental housing justice questions to the background. </p>
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Read more:
<a href="https://theconversation.com/growth-of-community-housing-may-be-an-illusion-the-cost-shifting-isnt-108598">'Growth' of community housing may be an illusion. The cost-shifting isn't</a>
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<p>After renewal, these estates will have less capacity to house people who are experiencing chronic homelessness and have other complex needs. Capacity to address chronic housing inequality across Victoria will be reduced.</p>
<h2>How public housing policy must change</h2>
<p>The logic that drives housing policy in Victoria and Australia is undermining the most important and effective tool we have for ending homelessness: public housing.</p>
<p>Victoria’s <a href="https://providers.dhhs.vic.gov.au/housing-establishment-fund">Housing Establishment Fund</a> is the main policy mechanism for those needing urgent accommodation. Yet, instead of providing secure permanent housing, it is increasingly being used to provide <a href="http://www.nwhn.net.au/admin/file/content2/c7/A%20crisis%20in%20crisis%20doc%20final%20040219_1550142202053.pdf">short-term unsafe shelter in cheap motels and rooming houses</a>. </p>
<p>International evidence shows permanent housing for people experiencing homelessness is <a href="https://hfe.homeless.org.uk/sites/default/files/attachments/The%20cost%20effectiveness%20of%20Housing%20First%20in%20England_March%202019_0.pdf">more cost-effective</a> and <a href="https://www.ahuri.edu.au/policy/ahuri-briefs/what-is-the-housing-first-model">does more to end homelessness</a>. It also secures the housing system to work better for all.</p>
<p>The most effective and cost-efficient way of overcoming homelessness, housing insecurity and inequality is to provide and maintain public housing. This requires a shift in policy direction that values housing not as real estate but as a basic right to a safe, secure place to dwell. In Australia this also means <a href="https://www.theage.com.au/national/victoria/schools-police-stations-andrews-to-sell-off-2600-hectares-of-public-land-20191009-p52z56.html">linking housing justice to questions of Treaty and land justice</a> for which Indigenous peoples have been calling for generations. </p>
<p>Victoria’s peak social justice and housing advocates have been aiming to win over state governments and influence homelessness policy for decades now. The crisis in affordable housing is just getting worse. Perhaps it’s time to consider an alternative strategy. </p>
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Read more:
<a href="https://theconversation.com/why-should-the-state-wriggle-out-of-providing-public-housing-79581">Why should the state wriggle out of providing public housing?</a>
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<img src="https://counter.theconversation.com/content/124875/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>David Kelly has received funding from the City of Darebin, City of Yarra and Moreland City Council for public housing research. He is a member of the Save Public Housing Collective</span></em></p><p class="fine-print"><em><span>Libby Porter has received funding from the City of Darebin, City of Yarra and Moreland City Council for public housing research. She is convenor of the Darebin Community Friends of Public Housing and a member of the Save Public Housing Collective.</span></em></p><p class="fine-print"><em><span>Kate Shaw does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>It’s time to tackle the shortage of public housing head-on, rather than skirt around the problem. Public housing is the single most cost-effective way to turn around the rise in homelessness.David Kelly, Research Fellow, HOME Research Hub, Deakin UniversityKate Shaw, Future Fellow, The University of MelbourneLibby Porter, Professor of Urban Planning, Centre for Urban Research, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1206752019-08-05T20:01:38Z2019-08-05T20:01:38ZFocus on managing social housing waiting lists is failing low-income households<p>A need to manage waiting lists, rather than ensuring positive outcomes for tenant households, strongly influences social housing policy, <a href="https://www.ahuri.edu.au/research/final-reports/316">newly published research</a> finds. This situation is not only a result of operational policies, but also a shortage of social housing stock that is suitable for tenants and a lack of viable alternatives – namely affordable, safe and secure private housing. Eligible applicants who don’t have a “priority need” can wait up to ten years to be housed. They face strict eligibility checks just to remain on the waiting list.</p>
<p>Since the large-scale <a href="https://www.ahuri.edu.au/research/final-reports/309">post-war expansion to house working-class families</a>, the social housing sector has <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2018/contents/housing-in-australia">shrunk relative to the rest of the housing system</a>. More than <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/priority-groups-and-wait-lists#pg4">140,000 people</a> are on public housing waiting lists. </p>
<p>Importantly, this figure does not capture <a href="https://www.ahuri.edu.au/research/final-reports/306">unmet demand</a> such as people sleeping rough and very low-income households in housing stress who are not on waiting lists. </p>
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Read more:
<a href="https://theconversation.com/homelessness-australias-shameful-story-of-policy-complacency-and-failure-continues-95376">Homelessness: Australia's shameful story of policy complacency and failure continues</a>
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<p>Waiting lists also don’t include hidden demand such as people suspended from waiting lists or excluded by their <a href="https://www.homelessnessnsw.org.au/sites/homelessnessnsw/files/2018-12/Path%20to%20Nowhere_0.pdf">visa status</a>.</p>
<p>The supply of social housing stock simply does not match the growing numbers of households experiencing <a href="https://amplify.csi.edu.au/amplify-insights/">housing affordability problems</a>. Between 2011 and 2016, <a href="https://www.launchhousing.org.au/%20australianhomelessnessmonitor/">government spending</a> on social housing fell by 7% from A$1.42 billion to A$1.32 billion. Today, social housing is provided to over <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2018/contents/housing-in-australia">800,000 tenants in more than 400,000 households</a> – 76% in public housing, 20% in community housing and 4% in Indigenous housing. </p>
<p>The expansion of public housing (delivered by state and territory housing authorities) to community housing and Indigenous housing (delivered by non-profit community organisations and Indigenous organisations) has transformed social housing. Community housing has <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/social-housing-dwellings">increased by 121%</a> between 2008-09 and 2017-18. This growth includes <a href="https://theconversation.com/growth-of-community-housing-may-be-an-illusion-the-cost-shifting-isnt-108598">tenanted stock transfers from public housing</a>. </p>
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Read more:
<a href="https://theconversation.com/australias-social-housing-policy-needs-stronger-leadership-and-an-investment-overhaul-119097">Australia's social housing policy needs stronger leadership and an investment overhaul</a>
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<p>Against this background, policymakers are <a href="https://www.ahuri.edu.au/research/final-reports/316">increasingly seeking to promote housing “pathways”</a>. Operational housing policies are intended to improve tenant housing and social outcomes (such as well-being and economic participation), but also to manage long waiting lists and make the system more efficient. </p>
<p>These policies shape housing pathways, determining how tenants and households move into, within and out of social housing. But these pathways are also influenced by household relationships and a <a href="https://www.tandfonline.com/doi/abs/10.1080/140360902760385565">household’s changing needs</a>. What a tenant or family need from their housing changes when, for example, relationships break down, new relationships begin, children are born or children leave home. </p>
<p><a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0029/43679/AHURI-Final-Report-316-The-construction-of-social-housing-pathways-across-Australia.pdf">Our research</a> sought to better understand the policy context behind housing pathways and their impacts on tenants’ experience. </p>
<h2>Getting in</h2>
<p>Pathways into social housing begin with application, which is a centralised process in most states and territories (apart from the Northern Territory). Prospective tenants apply once through a single portal, with information shared between government housing departments and community housing providers.</p>
<p>The success of an application depends on a range of eligibility criteria (see Table 1), starting with income and assets. Even if a prospective tenant meets the income criteria, priority is given to people and households with specific or complex needs. What constitutes “specific or complex needs” varies, but generally includes disability, poor physical or mental health, experience of family violence, exiting institutions, or being homeless or at risk of homelessness (the <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/priority-groups-and-wait-lists#pg1">most common pathway into social housing</a>). </p>
<p>Other criteria include citizenship and residence status (including restrictions based on permanent residency/citizen status), age and tenancy history. </p>
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<img alt="" src="https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=259&fit=crop&dpr=1 600w, https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=259&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=259&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=326&fit=crop&dpr=1 754w, https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=326&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=326&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Table 1: Summary of common eligibility criteria.</span>
<span class="attribution"><a class="source" href="https://www.ahuri.edu.au/research/final-reports/316">Source: Powell et al 2019</a>, <span class="license">Author provided</span></span>
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<p>An applicant’s place on the waiting list is continually checked. If an applicant is found to be ineligible, or simply does not respond, they may be suspended or removed from the list.</p>
<h2>Staying in</h2>
<p>Most states and territories have policies on the eligibility of tenants to continue in public housing. Criteria include income levels, use of the premises, and household change. What criteria are reviewed, and how often, varies widely. </p>
<p>Eligibility reviews mean tenants fear any extra income might result in an end to their tenure or having to make higher rent contributions. This potentially undermines their preparedness to undertake education and training, or take up work opportunities that might lead to greater independence.</p>
<h2>Moving within</h2>
<p>Policies allow tenants to apply for a transfer if household circumstances have changed. A dwelling might no longer be suitable – for example, as a result of overcrowding or family violence. </p>
<p>In practice, however, supply constraints make this challenging. Policies that transfer public housing properties to community housing providers result in tenants becoming less mobile as moving between public and community housing is not possible.</p>
<p>Landlord-initiated transfers can also occur. For example, property or housing estate renewal might require tenant relocation. A transfer might also be a result of tenant conduct or changes in eligibility status. </p>
<h2>Moving out</h2>
<p>Exits from social housing may occur when a tenant chooses to move to private housing or is evicted. Eviction may result from issues such as neighbourhood disputes, anti-social behaviour, rental arrears, a lease coming to an end, or changes to eligibility.</p>
<p>Tenants who are no longer eligible for social housing based on their income may also be evicted. These tenants often still have limited capacity to take on and manage a private rental tenancy.</p>
<p>Policy levers to help with moves out of social housing include: selling dwellings to tenants; providing private rent subsidies; rental transition programs; financial planning; and client-based needs planning. Some policies also target private landlords with a goal of increasing housing affordability and therefore pathways out of social housing. </p>
<p>By far the biggest obstacle to moving out of social housing, however, is the lack of affordable housing alternatives.</p>
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Read more:
<a href="https://theconversation.com/can-the-private-rental-sector-provide-a-secure-affordable-housing-solution-63880">Can the private rental sector provide a secure, affordable housing solution?</a>
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<h2>What this means</h2>
<p>While operational policy establishes formal pathways (by setting eligibility criteria and so on), what happens in practice may be different, as service providers can interpret and implement policies in different ways, with different effects for tenants. </p>
<p>Further, what is known about the housing pathways of tenants moving in, within and out of social housing is based on partial evidence. It comes from social housing providers themselves (missing information about events prior to and following occupancy), or from survey research seeking to fill some of the data gaps. Many blind spots exist in the housing pathways evidence base.</p>
<p>Optimal policy development requires clear, up-to-date evidence on how we might understand social housing pathways within a changed housing policy and housing assistance context. We also need to consider what advances in administrative and longitudinal data can tell us about how policy innovation might improve social housing pathways.</p>
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Read more:
<a href="https://theconversation.com/is-social-housing-essential-infrastructure-how-we-think-about-it-does-matter-110777">Is social housing essential infrastructure? How we think about it does matter</a>
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<img src="https://counter.theconversation.com/content/120675/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Abigail Powell receives funding from the Australian Housing and Urban Research Institute, the Australian Research Council, the Paul Ramsay Foundation, National Australia Bank, Good Shepherd Microfinance, yourtown and Homelessness NSW.</span></em></p><p class="fine-print"><em><span>Chris Hartley receives funding from Homelessness NSW and Hope Housing.
</span></em></p>The need to manage long waiting lists for social housing, rather than serving the best interests of tenants and prospective tenants, is a major driver of policymakers’ approach.Abigail Powell, Associate Professor at the Centre for Social Impact, UNSW SydneyChris Hartley, Research Fellow (Housing and Homelessness) at the Centre for Social Impact, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1178982019-05-30T19:49:43Z2019-05-30T19:49:43ZHousing affordability has improved slightly, but people on lower incomes will continue to struggle<figure><img src="https://images.theconversation.com/files/277122/original/file-20190530-171409-1v86l8r.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Policies focused on ownership do little to help lower-income households that are struggling to pay the rent.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/middleaged-family-having-difficulties-paying-utility-693706726?src=99RRLTUKu-2Xn0Fs0ewbKA-1-7&studio=1">Iakov Filimonov/Shutterstock</a></span></figcaption></figure><p>The re-election of the Morrison government has delivered an Australian housing policy platform based on home ownership. The recently announced <a href="https://theconversation.com/small-but-well-formed-the-new-home-deposit-scheme-will-help-and-its-unlikely-to-push-up-prices-117073">First Home Loan Deposit Scheme</a> and the existing <a href="https://www.ato.gov.au/General/New-legislation/In-detail/Super/First-home-super-saving-scheme/">First Home Super Saver Scheme</a> complement first home buyer grants and stamp duty concessions from state and territory governments. What we aren’t going to see is a major increase in the supply of <a href="https://www.facs.nsw.gov.au/providers/housing/affordable/about/chapters/what-is-affordable-housing">affordable housing</a> through a <a href="https://www.alp.org.au/policies/labors-comprehensive-plan-for-housing-affordability/">dedicated subsidised affordable rental program or negative gearing and capital gains tax reform</a>. </p>
<p>Is a policy based on home ownership going to fix the problems of housing affordability in this country? The <a href="https://bcec.edu.au/publications/getting-our-house-in-order-bcec-housing-affordability-report-2019/">BCEC Housing Affordability Report</a> published today by the <a href="https://bcec.edu.au/">Bankwest Curtin Economics Centre</a> suggests not. </p>
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<strong>
Read more:
<a href="https://theconversation.com/small-but-well-formed-the-new-home-deposit-scheme-will-help-and-its-unlikely-to-push-up-prices-117073">Small, but well-formed. The new home deposit scheme will help, and it's unlikely to push up prices</a>
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<p>The report is based on a survey that collected responses from just over 3,600 Australians across three states – New South Wales, Queensland and Western Australia – with 75% of responses from metropolitan locations and 25% from regional areas. </p>
<p>Similar surveys were conducted in 2015 and 2017. This allows for comparisons across the three periods. </p>
<h2>Housing costs</h2>
<p>The survey asked respondents to estimate the proportion of their gross income spent on housing costs. Around 40% of all households reported living rent/mortgage-free (outright owners, young adults living with parents etc). The chart below shows the distribution across six bands for the remaining households. </p>
<p>Just under half reported paying over 30% of their income on rent or mortgage costs. We see little change over the three surveys, although slightly fewer households are now paying more than 50%. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/276915/original/file-20190529-126256-rb00su.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/276915/original/file-20190529-126256-rb00su.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=380&fit=crop&dpr=1 600w, https://images.theconversation.com/files/276915/original/file-20190529-126256-rb00su.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=380&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/276915/original/file-20190529-126256-rb00su.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=380&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/276915/original/file-20190529-126256-rb00su.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=477&fit=crop&dpr=1 754w, https://images.theconversation.com/files/276915/original/file-20190529-126256-rb00su.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=477&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/276915/original/file-20190529-126256-rb00su.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=477&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://bcec.edu.au/publications/getting-our-house-in-order-bcec-housing-affordability-report-2019/">BCEC Housing Affordability Surveys 2015, 2017, 2019</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>For 2019, slightly more private renters pay over 30% compared to owners with a mortgage, but renters are more likely to be in the highest burden groups. The main difference is 60% of renters are forced to take on these high housing costs while 72% of owners take them on by choice. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/276917/original/file-20190529-126286-1vicjcl.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/276917/original/file-20190529-126286-1vicjcl.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/276917/original/file-20190529-126286-1vicjcl.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=381&fit=crop&dpr=1 600w, https://images.theconversation.com/files/276917/original/file-20190529-126286-1vicjcl.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=381&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/276917/original/file-20190529-126286-1vicjcl.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=381&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/276917/original/file-20190529-126286-1vicjcl.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=478&fit=crop&dpr=1 754w, https://images.theconversation.com/files/276917/original/file-20190529-126286-1vicjcl.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=478&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/276917/original/file-20190529-126286-1vicjcl.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=478&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://bcec.edu.au/publications/getting-our-house-in-order-bcec-housing-affordability-report-2019/">BCEC Housing Affordability Report 2019</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Households are very sensitive to changes in housing costs: 40% of those surveyed said a 10% increase in costs would have a major impact on their financial position. The expected impact was greater for renters than owners with a mortgage (44% compared to 38%). A 3% increase in the mortgage interest rate would have a major impact on the financial position of 63% of owners. </p>
<p>The impact of sustaining such costs can be severe: 46% said high housing costs affected their mental health and 30% their physical health. </p>
<p>The chart below shows the proportions of households struggling to meet their housing costs. Again, we see only slight improvement across the three surveys. </p>
<p>Among all households, 37% reported difficulty regularly meeting housing costs (at least a few months a year). This rose to around half of all renters and low-income households and to 56% of one-parent families. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/276920/original/file-20190529-126286-1k9kz7b.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/276920/original/file-20190529-126286-1k9kz7b.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/276920/original/file-20190529-126286-1k9kz7b.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=380&fit=crop&dpr=1 600w, https://images.theconversation.com/files/276920/original/file-20190529-126286-1k9kz7b.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=380&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/276920/original/file-20190529-126286-1k9kz7b.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=380&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/276920/original/file-20190529-126286-1k9kz7b.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=478&fit=crop&dpr=1 754w, https://images.theconversation.com/files/276920/original/file-20190529-126286-1k9kz7b.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=478&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/276920/original/file-20190529-126286-1k9kz7b.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=478&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><a class="source" href="https://bcec.edu.au/publications/getting-our-house-in-order-bcec-housing-affordability-report-2019/">BCEC Housing Affordability Report 2019</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/informal-and-illegal-housing-on-the-rise-as-our-cities-fail-to-offer-affordable-places-to-live-116065">Informal and illegal housing on the rise as our cities fail to offer affordable places to live</a>
</strong>
</em>
</p>
<hr>
<h2>Perceptions of affordability</h2>
<p>Housing affordability is not just about paying the rent or mortgage. It also includes running costs such as utility bills and maintenance. The survey asked respondents to rate the affordability of their housing on a ten-point scale and the results were collated into three ranks. </p>
<p>The chart below shows some improvement across surveys in the proportions of households rating their housing as affordable. These households are largely outside the lower-income groups. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/277136/original/file-20190530-69071-1bdclfz.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/277136/original/file-20190530-69071-1bdclfz.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/277136/original/file-20190530-69071-1bdclfz.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=379&fit=crop&dpr=1 600w, https://images.theconversation.com/files/277136/original/file-20190530-69071-1bdclfz.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=379&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/277136/original/file-20190530-69071-1bdclfz.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=379&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/277136/original/file-20190530-69071-1bdclfz.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=476&fit=crop&dpr=1 754w, https://images.theconversation.com/files/277136/original/file-20190530-69071-1bdclfz.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=476&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/277136/original/file-20190530-69071-1bdclfz.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=476&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://bcec.edu.au/publications/getting-our-house-in-order-bcec-housing-affordability-report-2019/">BCEC Housing Affordability Survey 2019</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<h2>Policy settings</h2>
<p>The deposit gap is the biggest barrier for potential home buyers, almost double the importance of the next barrier – a lack of stable employment. Other barriers largely revolve around a lack of suitable stock.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/277114/original/file-20190529-171409-12sx696.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/277114/original/file-20190529-171409-12sx696.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/277114/original/file-20190529-171409-12sx696.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=355&fit=crop&dpr=1 600w, https://images.theconversation.com/files/277114/original/file-20190529-171409-12sx696.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=355&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/277114/original/file-20190529-171409-12sx696.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=355&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/277114/original/file-20190529-171409-12sx696.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=446&fit=crop&dpr=1 754w, https://images.theconversation.com/files/277114/original/file-20190529-171409-12sx696.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=446&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/277114/original/file-20190529-171409-12sx696.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=446&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://bcec.edu.au/publications/getting-our-house-in-order-bcec-housing-affordability-report-2019/">BCEC Housing Affordability Report 2019</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Help for first home buyers is now embedded. Around three-quarters of potential purchasers regard government help through the various mechanisms shown in the chart below as quite or very important while two-thirds would like access to their superannuation to fund a deposit. </p>
<p>For those without help from the “<a href="https://theconversation.com/not-everyone-wins-from-the-bank-of-mum-and-dad-73842">bank of mum and dad</a>” these policies can mean the difference between home ownership and many more years living with parents or renting. It is difficult to see how such help can be equitably removed from the housing system. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/277117/original/file-20190529-171439-wixrpg.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/277117/original/file-20190529-171439-wixrpg.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/277117/original/file-20190529-171439-wixrpg.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=377&fit=crop&dpr=1 600w, https://images.theconversation.com/files/277117/original/file-20190529-171439-wixrpg.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=377&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/277117/original/file-20190529-171439-wixrpg.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=377&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/277117/original/file-20190529-171439-wixrpg.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=474&fit=crop&dpr=1 754w, https://images.theconversation.com/files/277117/original/file-20190529-171439-wixrpg.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=474&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/277117/original/file-20190529-171439-wixrpg.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=474&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption"></span>
<span class="attribution"><a class="source" href="https://bcec.edu.au/publications/getting-our-house-in-order-bcec-housing-affordability-report-2019/">BCEC Housing Affordability Report 2019</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>The survey included a number of questions for respondents owning an investment property and for those thinking about buying one. The capital gains tax (CGT) discount was more important to investors that negative gearing. However, only 15% regarded the latter as unimportant. </p>
<p>Around a quarter of investors said they wouldn’t have bought their property if negative gearing were not available and CGT was half its current rate. And 28% said they would not buy an investment property in the absence of negative gearing.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/277123/original/file-20190530-171481-teyn.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/277123/original/file-20190530-171481-teyn.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/277123/original/file-20190530-171481-teyn.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=379&fit=crop&dpr=1 600w, https://images.theconversation.com/files/277123/original/file-20190530-171481-teyn.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=379&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/277123/original/file-20190530-171481-teyn.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=379&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/277123/original/file-20190530-171481-teyn.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=476&fit=crop&dpr=1 754w, https://images.theconversation.com/files/277123/original/file-20190530-171481-teyn.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=476&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/277123/original/file-20190530-171481-teyn.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=476&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><a class="source" href="https://bcec.edu.au/publications/getting-our-house-in-order-bcec-housing-affordability-report-2019/">BCEC Housing Affordability Report 2019</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Such results suggest a modest impact on investment demand which could impact on local housing markets, depending upon the balance between investors and owner-occupiers in those markets. </p>
<h2>Policy development</h2>
<p>Between the 2017 and 2019 surveys, house prices and rents fell in large areas of the three states. Yet our analysis shows <a href="https://theconversation.com/why-falling-house-prices-do-less-to-improve-affordability-than-you-might-think-111267">little impact on affordability</a> for low-income households. Intervention is required to deliver housing affordable to such households. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/why-falling-house-prices-do-less-to-improve-affordability-than-you-might-think-111267">Why falling house prices do less to improve affordability than you might think</a>
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</em>
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<p>Investment in the National Housing Financial Investment Corporation (<a href="https://nhfic.gov.au/">NHFIC</a>) and the National Housing and Homelessness Agreement (<a href="http://www.federalfinancialrelations.gov.au/content/housing_homelessness_agreement.aspx">NHHA</a>) provides some hope outside home ownership policies. The NHFIC has a major role to play in <a href="https://theconversation.com/bond-aggregator-helps-build-a-more-virtuous-circle-of-housing-investment-76793">securing funding for the community housing sector</a>. Let’s hope it does not get sidetracked in its new role delivering the <a href="https://theconversation.com/small-but-well-formed-the-new-home-deposit-scheme-will-help-and-its-unlikely-to-push-up-prices-117073">first home buyers deposit guarantee scheme</a>. </p>
<p>Large numbers of households are struggling with their housing costs, and not meeting these costs can <a href="https://theconversation.com/homelessness-soars-in-our-biggest-cities-driven-by-rising-inequality-since-2001-117833">result in homelessness</a>. This points to the need for more investment in public and community housing. </p>
<p>Ultimately, there is a mismatch between incomes and house prices. <a href="https://theconversation.com/housing-policy-reset-is-overdue-and-not-only-in-australia-112835">Major housing system reform</a> is necessary to redress the balance. </p>
<p>In the meantime, a large and sustained supply of subsidised rental housing and a secure private rental sector that offers a real alternative to ownership are essential components of any future Australian housing system. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/housing-policy-reset-is-overdue-and-not-only-in-australia-112835">Housing policy reset is overdue, and not only in Australia</a>
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<img src="https://counter.theconversation.com/content/117898/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Steven Rowley receives funding from the Australian Housing and Urban Research Institute and the Bankwest Curtin Economics Centre. He is chair of the Housing Industry Forecasting Group in Western Australia</span></em></p><p class="fine-print"><em><span>Alan Duncan receives funding from the Australian Housing and Urban Research Institute (AHURI). The Bankwest Curtin Economics Centre is an independent economic and social research organisation located within the Faculty of Business and Law at Curtin University. The centre was established in 2012 with support from Bankwest (a division of Commonwealth Bank of Australia) and Curtin University. The views in this article are those of the authors and do not represent the views of Curtin University and/or Bankwest or any of their affiliates.</span></em></p><p class="fine-print"><em><span>Amity James receives funding from the Bankwest Curtin Economics Centre and the Australian Housing and Urban Research Institute. </span></em></p>The policy focus remains on home ownership, but a new survey shows slight improvements in affordability do little to help people on low incomes. Their plight calls for better social housing policy.Steven Rowley, Director, Australian Housing and Urban Research Institute, Curtin Research Centre, Curtin UniversityAlan Duncan, Director, Bankwest Curtin Economics Centre, and Bankwest Research Chair in Economic Policy, Curtin UniversityAmity James, Senior Lecturer, School of Economics, Finance and Property, Curtin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1085982019-01-23T19:03:31Z2019-01-23T19:03:31Z‘Growth’ of community housing may be an illusion. The cost-shifting isn’t<p><a href="https://www.scch.org.au/">Southern Cross Housing</a>, a non-profit community housing provider, took over management of <a href="https://www.tenants.org.au/tu/news/public-housing-transfers">just under 1,000 public housing dwellings</a> on the New South Wales South Coast last October. This transfer from the NSW Department of Family and Community Services nearly doubled Southern Cross’s portfolio. More than <a href="https://thirdsector.com.au/link-housing-takes-over-community-housing-in-largest-ever-sydney-transfer/">3,000 transfers</a> have since been made to community housing providers on the <a href="https://chl.org.au/2017/10/community-housing-ltd-to-house-over-2200-people-in-nsw/">NSW North Coast</a> and in <a href="https://www.linkhousing.org.au/files//Press_Release/media_release_nsw_government_transfers_1875_properties_to_link_housing.pdf">northern Sydney</a>. </p>
<p>These are the first of over <a href="https://www.facs.nsw.gov.au/housing/living/management-transfer-program/management-transfer-program-overview">14,000 tenancies being contracted out to community housing providers</a> over coming months. The “whole-of-location” transfer program will result in the department closing housing offices in four regions. Non-government organisations will manage all government housing assistance programs in these regions.</p>
<p>This is not an entirely new development. Nationally, community providers were responsible for <a href="https://www.ahuri.edu.au/policy/ahuri-briefs/what-is-the-right-level-of-social-housing">about 20% of 400,000 social housing dwellings</a> in 2016. Most are managed under contract for state authorities, which retain ownership of the properties. </p>
<p>The current transfers represent a major acceleration in the growth of community housing providers’ share of the social housing sector. It will bring NSW to within a few points of the <a href="http://apo.org.au/sites/default/files/resource-files/2010/04/apo-nid21116-1160536.pdf">35% target agreed by the Housing Ministers’ Council in 2009</a>. This will be achieved in the next few years with transfers resulting from large estate redevelopment projects. </p>
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Read more:
<a href="https://theconversation.com/we-still-live-here-public-housing-tenants-fight-for-their-place-in-the-city-107188">We still live here: public housing tenants fight for their place in the city</a>
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<p>It is the first time a state government housing agency has effectively contracted out the entirety of its operations, albeit in particular regions. Rents collected will fund the management of all housing programs in these areas.</p>
<p>The policy narrative surrounding this program is richly positive. The government is promising improved customer experience and, importantly, more resources for social housing in general. Last month, NSW Minister for Family and Community Services Pru Goward <a href="https://www.linkhousing.org.au/files//Press_Release/media_release_nsw_government_transfers_1875_properties_to_link_housing.pdf">said</a>:</p>
<blockquote>
<p>By transferring management to Community Housing Providers … we are harnessing over $1 billion of additional funding over 20 years that will improve the experience of people living in social housing. I am delighted that, as part of the transfer, tenants will have the support and services they need to improve their lives. </p>
</blockquote>
<h2>So where is the extra money coming from?</h2>
<p>The extra A$1 billion represents Commonwealth funds that will be captured by the NSW social housing system without appearing in either state or federal budgets. This results from an anomaly in federal income security arrangements: very low-income community housing tenants can receive up to about $67 per week (singles) in <a href="https://www.dss.gov.au/housing-support/programmes-services/commonwealth-rent-assistance">Commonwealth Rent Assistance</a> (CRA), whereas public housing tenants are not eligible for this benefit. </p>
<p>Public housing rents are calculated at 25% of income (or market rent if this is lower). But community housing organisations can add the entire amount of CRA received by the tenant to this figure. This effectively increases the rent payable for a single pensioner by up to 70%. However, tenants are not charged more than market rent, so where the assessed rent plus CRA exceeds market rent, they retain the balance.*</p>
<p>Under changes in the law in 2016 tenants have no option but to accept the changes. If a tenant delays or fails to apply for CRA for any reason they are deemed to be receiving it and their rent correspondingly adjusted. </p>
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<iframe width="440" height="260" src="https://www.youtube.com/embed/pQ3c40m15wA?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">A Southern Cross Housing video explaining how Commonwealth Rent Assistance will be used to boost rental revenue.</span></figcaption>
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<h2>What about the housing maintenance backlog?</h2>
<p><a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2017/housing-and-homelessness/housing">According to the Productivity Commission</a>, in 2016 more than a quarter of public housing dwellings in NSW failed to meet a basic standard of functionality and structural integrity. This was the worst result of any state. </p>
<p>It is highly likely that the transferred properties carry a substantial backlog of maintenance and repairs. The cost of this work will be effectively shifted to the federal government. However, as CRA is an income security entitlement, this will not appear as housing expenditure in the federal budget. </p>
<p>Maintenance issues are the most common reason for complaints and tenant dissatisfaction, so tenants will welcome more spending on maintenance. However, community providers are required to use the government’s existing maintenance contractors at least until contracts expire. </p>
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Read more:
<a href="https://theconversation.com/tenants-calls-for-safe-public-housing-fall-on-deaf-ears-79652">Tenants' calls for safe public housing fall on deaf ears</a>
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<p>Providers contend that higher staff-to-tenant ratios will lead to more humanised management and greater <a href="https://www.linkhousing.org.au/blog/link-housing-wins-social-housing-management-transfer">responsiveness to individual tenants’ needs</a>. This claim will be tested against the fact that the community providers are dramatically expanding their portfolios and scope of operations, and will absorb many displaced department staff. </p>
<p>For some tenants it appears more local “hands-on” management is not always experienced as a positive. Analysis of <a href="http://www.ncat.nsw.gov.au/Pages/cc/Divisions/Social_housing/social_housing.aspx">NSW Civil and Administrative Tribunal (NCAT)</a> data sourced by advocates somewhat surprisingly reveals that community providers are heavily over-represented in taking tenants to the tribunal. At the same time, the break-up of management among many providers will limit the possibility of moving or swapping houses for employment or family reasons. </p>
<h2>Lack of title limits new housing supply</h2>
<p>In the UK and Europe, non-profit housing organisations are now the <a href="https://www.housing.org.uk/resource-library/browse/how-many-homes-did-housing-associations-deliver-in-quarter-two-2018-19/">major developers of new social housing</a>. They do this by borrowing against their assets and partnering with the development industry. </p>
<p>Australian community housing managers have long argued that they should be given freehold title to state properties. In theory, this would enable them to borrow and provide extra social housing stock without adding to public debt. </p>
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Read more:
<a href="https://theconversation.com/community-sector-offers-a-solid-platform-for-fair-social-housing-79997">Community sector offers a solid platform for fair social housing</a>
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<p>State governments have resisted asset transfers on accountability grounds, preferring to simply outsource management. </p>
<p>So, rather than adding to social housing supply, the marked growth of the community housing sector over the last decade has been almost entirely at the expense of public housing. Australia’s population <a href="http://www.abs.gov.au/census">increased by 12.6% between 2011 and 2016</a>. The number of social housing dwellings (public and community housing) <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2019/housing-and-homelessness/housing">grew by less than 3% in that time</a>. Most of that growth resulted from federal stimulus funding during the global financial crisis. </p>
<p>The current program in NSW excludes any expectation that providers will leverage additional income to develop new housing. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/251401/original/file-20181218-27755-a6o8dg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/251401/original/file-20181218-27755-a6o8dg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/251401/original/file-20181218-27755-a6o8dg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=439&fit=crop&dpr=1 600w, https://images.theconversation.com/files/251401/original/file-20181218-27755-a6o8dg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=439&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/251401/original/file-20181218-27755-a6o8dg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=439&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/251401/original/file-20181218-27755-a6o8dg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=552&fit=crop&dpr=1 754w, https://images.theconversation.com/files/251401/original/file-20181218-27755-a6o8dg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=552&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/251401/original/file-20181218-27755-a6o8dg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=552&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Social housing as percentage of all dwellings.</span>
<span class="attribution"><span class="source">Source: Michael Darcy</span>, <span class="license">Author provided</span></span>
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<p>In 2013 the Australian Housing and Urban Research Institute published a comprehensive analysis of social housing transfers. The <a href="https://www.ahuri.edu.au/research/final-reports/215">report</a> concluded that potential benefits included maximising revenue, improving services and leveraging growth. However, it noted that “there has been an unrealistic loading of objectives onto this one policy mechanism”. </p>
<p>The authors called for a clearer and more realistic rationale for housing transfers and better opportunities for tenants to be involved in shaping the outcome. </p>
<p>Five years on it is apparent that revenue is the key driver at the expense of increased supply and tenant choice or voice. Support for the growth of community housing has been restated in the new <a href="http://www.federalfinancialrelations.gov.au/content/housing_homelessness_agreement.aspx">National Housing and Homelessness Agreement</a> where it appears as a national priority area. </p>
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Read more:
<a href="https://theconversation.com/the-new-national-housing-agreement-wont-achieve-its-goals-without-enough-funding-99936">The new national housing agreement won't achieve its goals without enough funding</a>
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<p>In NSW, a wide range of former government responsibilities and access to a Commonwealth-funded revenue stream have been handed over without the accountability and grant management mechanisms that traditionally apply to community-based service providers. Tenants are expected to apply for federal funds on behalf of the state social housing system and bear a significant cost if they don’t comply.</p>
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<p><em>* This article has been updated to make it clear community housing providers do not receive more than market rent from combining the assessed rent amount paid by tenants plus their Commonwealth Rent Assistance.</em></p><img src="https://counter.theconversation.com/content/108598/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michael Darcy is currently employed by the Tenants' Union of NSW.</span></em></p>For the first time a state government housing agency has effectively contracted out all its operations in some regions, but will this improve and add to the total social housing stock?Michael Darcy, Adjunct Professor, School of Social Sciences and Psychology, Western Sydney UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1089092018-12-18T03:58:09Z2018-12-18T03:58:09ZLabor’s housing pledge is welcome, but direct investment in social housing would improve it<p>Despite recent falls in the housing market, housing costs and indebtedness bite deeply into household budgets, especially at Christmas time. Just over <a href="https://www.ahuri.edu.au/research/final-reports/306">433,000 households</a> confront housing stress and homelessness every day across Australia. They represent the current shortfall of <a href="https://housing.vic.gov.au/social-housing">social housing</a>. </p>
<p>If Christmas offers a moment for reflection, ask yourself what should our resolutions be for the housing market? What should we expect our governments to do about it?</p>
<p>In this article, we look at this week’s major statement on housing policy from a key contender to lead Australia’s next government – <a href="https://theconversation.com/shortens-subsidy-plan-to-boost-affordable-housing-108881">made by Bill Shorten</a> at the ALP national conference. </p>
<p>We applaud the principle of fairness and the ambition of the ALP policy. We are less supportive of the reliance on for-profit investors, market rent mechanisms and land grabs. <a href="https://www.ahuri.edu.au/research/final-reports/306">Our research</a> shows direct government investment in social housing is ultimately far <a href="https://theconversation.com/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it-105960">more efficient and effective</a> than subsidising investors in the long term.</p>
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<em>
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Read more:
<a href="https://theconversation.com/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it-105960">Australia needs to triple its social housing by 2036. This is the best way to do it</a>
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<h2>So what is Labor’s policy?</h2>
<p>Shorten’s announcement also pledges reform of tax concessions that are driving inequality between households and investors. However, Labor recognises that this might not be enough to tilt the balance in favour of low-income households, and directing the savings from these changes into housing programs is a welcome move. </p>
<p>Labor proposes to subsidise investors in affordable rental housing, much like the Rudd government’s National Rental Affordability Scheme (<a href="https://www.dss.gov.au/housing-support-programs-services-housing-national-rental-affordability-scheme/about-the-national-rental-affordability-scheme-nras">NRAS</a>). Labor would offer an $8,500-a-year subsidy over 15 years to investors who build new homes for low-income and middle-income households to rent at an “affordable” rate – 20% below market rent. </p>
<p>Starting modestly, the program aims to produce 20,000 affordable units over three years, building to a much larger target of 250,000 dwellings over ten years. </p>
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Read more:
<a href="https://theconversation.com/shortens-subsidy-plan-to-boost-affordable-housing-108881">Shorten's subsidy plan to boost affordable housing</a>
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<p>State governments would also be required to get on board through partnership agreements, as they have done in the past, providing land and other forms of co-investment. <a href="https://www.domain.com.au/news/stamp-duty-across-australia-doubled-in-past-four-years-according-to-housing-industry-association-20180116-h0j6yb/">Hefty stamp duty revenues</a> in recent years should make this easier for the states.</p>
<p>While Labor’s targets appear high by recent standards, Commonwealth and state governments directly funded the building of 9,000 public housing dwellings each year for the better half of the 20th century – until 1996. Annual production is now down to 3,000 dwellings. That’s not even enough to maintain the existing public share of housing.</p>
<p>Since the mid-1990s, a preference for outsourcing social responsibility through private rental providers and indirect rental support payments has dominated public policy. The ALP’s subsidy-based policy continues this trend. </p>
<p>The proposal centres on maintaining returns to investors at levels that encourage investment. As our previous <a href="https://www.ahuri.edu.au/research/final-reports/306">research</a> has shown, over the longer term this increases cost per dwelling. The question remains, as it did under the NRAS: <a href="https://www.domain.com.au/news/labors-new-build-to-rent-housing-subsidy-labelled-a-handout-for-developers-792720/">who are we trying to subsidise here</a>, the investors or the tenants, and is it really equitable and effective? </p>
<h2>What are the alternatives?</h2>
<p><a href="https://www.ahuri.edu.au/research/final-reports/293">Previous work has shown</a> that NRAS-type schemes offer most benefit to new affordable housing developments when the funds are directed to not for profit organisations, rather than “leaking” out to the for-profit private sector. The advantages of this approach include:</p>
<ul>
<li>subsidies are retained within the affordable housing system</li>
<li>benefits are directed to regulated not-for-profit developers with a social purpose </li>
<li>the benefit is stretched out over a longer time, meaning government investment does not expire after a set time.</li>
</ul>
<p>In the UK, a lack of direct conditional investment and weak definitions of affordability led to an <a href="https://www.theguardian.com/society/2018/nov/22/construction-of-homes-for-social-rent-down-80-percent-on-a-decade-ago-england-families-waiting-lists?CMP=Share_iOSApp_Other">80% decline in social housing production</a>. Without public equity, recurrent operating subsidies have no influence on design quality or ongoing impact after the expiry of providers’ obligations – or their cancellation. Yes, they can be switched on and off like a tap – as <a href="https://www.propertyobserver.com.au/forward-planning/investment-strategy/politics-and-policy/31235-no-future-for-nras-as-fifth-round-is-scrapped-in-2014-budget.html">happened in 2014 with the NRAS</a>.</p>
<p>With good design, a new scheme could overcome some of these deficiencies. Labor promises to provide lower annual subsidies than NRAS but for longer – 15 rather than 10 years – adding up to at least $127,500 from the Commonwealth for a tenancy to be offered at below market rents. It’s a substantial commitment. </p>
<p>Yet if this level of support was invested up front to build dwellings, rather than provided as an annual operating subsidy, it would make a substantial and enduring contribution to Australia’s housing needs. This is not only socially responsible, it can drive green innovation and is also more financially responsible too.</p>
<p>The only thing that stands in the way is the narrow public accounting doctrine that privileges day-to-day expenditure over long-term investments. This is something that, in the UK, even the Treasury and the National Audit Office are learning to overcome after the painful experience of the <a href="https://www.theguardian.com/uk-news/2018/oct/29/hammond-abolishes-pfi-contracts-for-new-infrastructure-projects">Private Finance Initiative</a>.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/homeless-numbers-will-keep-rising-until-governments-change-course-on-housing-93417">Homeless numbers will keep rising until governments change course on housing</a>
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<h2>How much more cost-effective is direct investment?</h2>
<p>If equity and fairness are to be the yardsticks of policy, age pensioners, people with disabilities and low-paid workers should be the focus of our deepest support. Our <a href="https://www.ahuri.edu.au/research/final-reports/306">AHURI research</a> has established the level, type and location of investment required to meet the needs of 433,000 low-income households in housing stress or homeless across Australia. The current market offers no affordable or secure options for them. </p>
<p><a href="https://www.ahuri.edu.au/research/final-reports/306">Our research</a> also compared the cost of subsidising investors versus direct investment by government. Our modelling of costs and review of international experience provide evidence that direct investment is far more efficient and effective in the medium and long term.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/251078/original/file-20181217-185264-ezojzz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/251078/original/file-20181217-185264-ezojzz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=413&fit=crop&dpr=1 600w, https://images.theconversation.com/files/251078/original/file-20181217-185264-ezojzz.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=413&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/251078/original/file-20181217-185264-ezojzz.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=413&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/251078/original/file-20181217-185264-ezojzz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=518&fit=crop&dpr=1 754w, https://images.theconversation.com/files/251078/original/file-20181217-185264-ezojzz.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=518&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/251078/original/file-20181217-185264-ezojzz.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=518&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Capital funding model.</span>
<span class="attribution"><a class="source" href="https://www.ahuri.edu.au/research/final-reports/306">Lawson et al, 2018</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/251077/original/file-20181217-185249-13gdkq7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/251077/original/file-20181217-185249-13gdkq7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=346&fit=crop&dpr=1 600w, https://images.theconversation.com/files/251077/original/file-20181217-185249-13gdkq7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=346&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/251077/original/file-20181217-185249-13gdkq7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=346&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/251077/original/file-20181217-185249-13gdkq7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=435&fit=crop&dpr=1 754w, https://images.theconversation.com/files/251077/original/file-20181217-185249-13gdkq7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=435&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/251077/original/file-20181217-185249-13gdkq7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=435&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Operating subsidy funding model.</span>
<span class="attribution"><a class="source" href="https://www.ahuri.edu.au/research/final-reports/306">Lawson et al, 2018</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Thus, we argue for more direct investment in social housing, strategic use of efficient mission-driven financing and retained investment via public equity and public land leases.</p>
<p>Recognition of the need for national leadership and policy reform is growing. After backpedalling, the Coalition government moved forward in 2018 to establish, with cross-party support, the <a href="https://nhfic.gov.au/about-us/">National Housing Finance Corporation</a>. This mission focused public corporation will soon channel lower-cost financing towards regulated not-for-profit housing. Of course, financing is debt and not quite the same as funding. </p>
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<p>
<em>
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Read more:
<a href="https://theconversation.com/government-guarantee-opens-investment-highway-to-affordable-housing-88549">Government guarantee opens investment highway to affordable housing</a>
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<p>The Australian Greens have yet to announce their policy but an outline suggests a commitment to invest in social housing and establish a federal housing trust. </p>
<p>The ALP’s proposals are framed in line with the laudable principle of fairness and are a work in progress – rather than mission accomplished. Overcoming the shortfall of affordable and secure housing will require purposeful Commonwealth and state government funding, mission driven financing as well as land policies to make housing markets fairer for all.</p><img src="https://counter.theconversation.com/content/108909/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Julie Lawson receives funding from the Australian Housing and Urban Research Institute. </span></em></p><p class="fine-print"><em><span>Laurence Troy receives funding from the Australian Housing and Urban Research Institute and the Australian Research Council. </span></em></p>Labor has made a substantial commitment to tackling inequality in Australia, but has taken a second-best approach to overcoming the huge shortfall of social housing.Julie Lawson, Honorary Associate Professor, Centre for Urban Research, RMIT UniversityLaurence Troy, Research Fellow, City Futures Research Centre, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1028402018-09-19T20:13:38Z2018-09-19T20:13:38ZA community fix for the affordable housing crisis<figure><img src="https://images.theconversation.com/files/236157/original/file-20180913-133877-1k1nxal.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Caggara House in Brisbane caters for low-income residents aged 55 and over who previously lived alone in state-owned houses that were too big for their needs.</span> <span class="attribution"><a class="source" href="https://www.facebook.com/udia.qld/photos/a.268062660025566/591411934357302/?type=3&theater">UDIA Qld/Facebook</a></span></figcaption></figure><p>Jeannie loves her apartment. It has a separate bedroom, a small bathroom, and an open-plan kitchen, lounge and dining area. It’s compact, but sliding doors open onto a generous balcony to create a larger living space. Jeannie often takes her meals on the balcony, where she can sit surrounded by pot plants and enjoy a view across houses with leafy backyards.</p>
<p>Jeannie’s three-year-old apartment is one of 57 single-bedroom units in <a href="https://grindley.com.au/project/brisbane-housing-caggara-house">Caggara House</a>, a five-storey affordable housing development. It’s in a quiet street in Brisbane’s Mount Gravatt, within easy reach of shops, a medical centre, cafes and public transport.</p>
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Read more:
<a href="https://theconversation.com/community-sector-offers-a-solid-platform-for-fair-social-housing-79997">Community sector offers a solid platform for fair social housing</a>
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<p>Jeannie has spent much of her life in public housing on Brisbane’s south side. She brought up her three children in a three-bedroom commission home in nearby Holland Park. </p>
<p>After they had all flown the nest she downsized to a two-bedroom townhouse in Annerley. “It was more central,” she says, “just five to ten minutes from the city, which was good when I was working on call as a casual.” </p>
<p>Eventually, though, getting up the stairs became a problem, and Jeannie felt a bit unsafe living at ground level. At Caggara House there is a security entrance, a lift to her third-floor apartment, and wide passageways and doorways, so it is both safe and easy to navigate for someone with limited mobility.</p>
<p>Caggara is split into two buildings with a landscaped garden in between to give the complex a “green lung”. There is a shared barbecue area, a communal laundry, and a common room for parties, meetings and exercise classes. The development has won prizes for an energy-efficient design that provides for both privacy and social interaction.</p>
<p>Yet the real innovation is in the concept — it provided well-located, high-quality housing for low-income residents aged 55 and over, while freeing up resources to add to Brisbane’s overall stock of affordable housing. This might sound like a magic pudding, too good to be true, but Caggara’s residents previously lived alone in state-owned houses that were too big for their needs. Those houses were worth about A$500,000 each. It cost a little more than half that much to build each of the units in Mount Gravatt. </p>
<p>In this way, an investment of A$15 million in Caggara freed up A$25 million worth of assets that could be put to better use, either by accommodating families on the waiting list for social housing or by being sold to raise capital for new buildings.</p>
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<figcaption><span class="caption">Caggara House was created for former public housing tenants over the age of 55.</span></figcaption>
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<h2>Community housing pioneers around the country</h2>
<p>Caggara House is an initiative of the not-for-profit <a href="http://bhcl.com.au/about-bhc/">Brisbane Housing Company</a>. It’s a provider of what is often called community housing, to distinguish it from the public housing supplied by state authorities (even though they serve a common client base of low-income tenants). Since it was set up in 2002, BHC has built 1,300 affordable rental dwellings and earned the same AA- credit rating as the Commonwealth Bank.</p>
<p><a href="https://housingfirst.org.au/">Housing First</a> (previously the Port Phillip Housing Association) is another innovative community-housing provider. It has 1,200 dwellings scattered around Melbourne. And, like BHC, it forms strategic partnerships with private developers, other community organisations, and all tiers of government to build energy-efficient homes with low running costs.</p>
<p>In Sydney, affordable housing provider <a href="https://bluechp.com.au/">BlueCHP</a> has a portfolio of 1,600 properties. In November 2017 it opened <a href="https://bluechp.com.au/projects/macarthur-gardens/">Macarthur Gardens</a>, a mix of apartments clustered in three towers close to Macarthur Railway Station, Macarthur Square Shopping Centre, and Western Sydney University. BlueCHP manages 56 of the dwellings as below-market rentals for low-income households and is selling the other 45 to help finance the project.</p>
<p>Macarthur Gardens is the largest residential complex in Australia built from cross-laminated timber. BlueCHP was the first developer in New South Wales to use this cost-effective, environmentally friendly technology.</p>
<p>In theory, state housing authorities could innovate like the Brisbane Housing Company, Housing First and BlueCHP. In practice, this rarely happens. Governments tend to be overly cautious in a sector that is crying out for flexibility. David Cant, who was chief executive of BHC for its first 15 years, says:</p>
<blockquote>
<p>Not-for-profits can take risks. They can work quicker and smarter.</p>
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<p>Community housing providers also “know their residents and know their geography”, Cant adds.</p>
<p>Australia has a pressing need for more social and affordable housing. More than half of all low-income tenants in the private market spend at least 30% of their disposable income on rent (and often much more than that). This can lead them to skimp on essentials like food, heating, transport, health care and schoolbooks. In the long term this sort of rental stress can damage physical and mental health, stunt educational attainment, and limit opportunity.</p>
<h2>Australia can learn from UK housing providers</h2>
<p>Cant thinks the best way to reduce rental stress is to build up the community housing sector, even though it currently provides less than 1% of all Australian dwellings. He is confident this can be done, based on 25 years working in Britain.</p>
<p>Before the Thatcher government sold off council houses in the 1980s, local government was the largest and most established provider of low-cost rental dwellings in Britain. Today, housing associations are more significant: 170 individual housing associations own 2.49 million homes – more than 10% of all housing in Britain. Local government now accounts for just 7%.</p>
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Read more:
<a href="https://theconversation.com/sensible-reform-to-finance-affordable-housing-deserves-cross-party-support-72059">Sensible reform to finance affordable housing deserves cross-party support</a>
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<p>Oona Goldsworthy, chief executive of the Bristol-based not-for-profit housing association <a href="http://www.unitedcommunities.org.uk/">United Communities</a>, says the sector matured relatively quickly. On a visit to Australia to she told me:</p>
<blockquote>
<p>Housing associations in the United Kingdom grew out of an ideological and political push that the state is not necessarily the best provider of housing. </p>
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<p>The view was that smaller organisations that were closer to the community could do a better job. Goldsworthy says British housing associations were able to borrow proactively, capturing a relatively small amount of public subsidy and matching it with lending from other sources. That’s exactly the sort of agility that gives community housing an edge over public-sector providers in Australia.</p>
<p>In the 2017 federal budget, the then treasurer, Scott Morrison, announced two measures designed to enable not-for-profit associations to build more housing: the <a href="https://treasury.gov.au/consultation/c2017-222774/">National Housing Finance and Investment Corporation</a> and an affordable <a href="https://theconversation.com/bond-aggregator-helps-build-a-more-virtuous-circle-of-housing-investment-76793">housing bond aggregator</a>. Together, they are designed to make it easier and cheaper for housing providers to borrow money by acting as a bridge between community-housing providers and superannuation funds. </p>
<p>While community organisations can and do borrow from banks, each loan must be separately negotiated. Super funds won’t deal one on one with individual providers in this way, so the NHFIC aims to offer them a standardised, rated investment product.</p>
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Read more:
<a href="https://theconversation.com/bond-aggregator-helps-build-a-more-virtuous-circle-of-housing-investment-76793">Bond aggregator helps build a more virtuous circle of housing investment</a>
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<p>Since it has the backing of both Labor and the Greens, the NHFIC should survive any change of government. Yet the most important tool for repairing housing in Australia is still missing — a substantial amount of government money. </p>
<p>Cant, who was recently <a href="http://sjm.ministers.treasury.gov.au/media-release/085-2018/">appointed</a> to the NHFIC board, says poor people are generally reliable rent-payers because they know housing underpins the rest of their lives. Offered a deal along the lines of “be a good neighbour, pay your rent and you can stay here as long as you like”, they will grab it with both hands and enjoy a sense of pride and ownership that is indistinguishable from an owner-occupied home. Yet the rent they can afford to pay is not enough to cover the cost of building and maintaining community housing. </p>
<p>Cant says:</p>
<blockquote>
<p>If you want to house people on lower incomes then you have to find a bit of a subsidy.</p>
</blockquote>
<p>The holy grail of superannuation funds investing in affordable housing will not be achieved unless government tops up the rents paid by low-income households to generate an acceptable rate of return. </p>
<p>Piers Williamson is the chief executive of the <a href="https://www.thfcorp.com/">Housing Finance Corporation</a> — Britain’s equivalent to NHFIC — and has been advising the Australian government on setting up the NHFIC. He <a href="https://www.youtube.com/watch?v=6sJh1HG4bZU&feature=youtu.be">told</a> the tenth <a href="http://www.nhc.edu.au/past-conferences/sydney-2017/">National Housing Conference</a> in Sydney that Britain’s affordable housing model was underpinned by £45 billion (A$75 billion) in grant money. “Grants are one of the things missing over here,” he said. “Subsidised housing requires a subsidy.”</p>
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Read more:
<a href="https://theconversation.com/government-guarantee-opens-investment-highway-to-affordable-housing-88549">Government guarantee opens investment highway to affordable housing</a>
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<p>Australia badly needs more rental accommodation that does not leave low-income tenants living in stress. The only proven way to increase the supply of social and affordable dwellings is to increase public investment in the sector — in other words, to spend more taxpayers’ dollars. </p>
<p>Why should wealthier Australians agree to subsidise the housing of poorer Australians through the tax system? For David Cant, social justice is reason enough. </p>
<blockquote>
<p>As a nation, we are sleepwalking into inequality. The settings we have got are dividing the community.</p>
</blockquote>
<p>As housing inequality worsens it will touch more and more people. One day it could be an old friend, a sibling, a child, or a parent facing housing troubles. One day it could be you or me.</p>
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<p><em>This is an edited extract from <a href="https://www.textpublishing.com.au/books/no-place-like-home-repairing-australia-s-housing-crisis">No Place Like Home: Repairing Australia’s Housing Crisis</a>, published by Text on September 17.</em></p><img src="https://counter.theconversation.com/content/102840/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Mares is lead moderator with the Cranlana Programme for ethical leadership, a contributing editor to Inside Story magazine and a member of the research committee of the Centre for Policy Development.</span></em></p>Much of the innovation in providing social housing is coming from community housing providers around the country. And it’s desperately needed given the state of housing inequality in Australia.Peter Mares, Adjunct Fellow, Centre for Urban Transitions, Swinburne University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/999362018-07-16T20:09:50Z2018-07-16T20:09:50ZThe new national housing agreement won’t achieve its goals without enough funding<figure><img src="https://images.theconversation.com/files/227734/original/file-20180716-44088-i7gek.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">There's never been enough funding to ensure affordable housing for those who need it.</span> <span class="attribution"><span class="source">from shutterstock.com</span></span></figcaption></figure><p>This month, yet another policy agreement on housing between the Commonwealth and state and territory governments came into effect. The <a href="http://www.federalfinancialrelations.gov.au/content/housing_homelessness_agreement.aspx">National Housing and Homelessness Agreement</a> is the latest version of a 73-year-long series of such intergovernmental pacts to ensure affordable housing for lower-income Australians and to fund services for the homeless.</p>
<p>It replaces the ten-year <a href="http://www.federalfinancialrelations.gov.au/content/npa/national_agreements/national-housing-agreement.pdf">National Affordable Housing Agreement</a> and a series of partnerships since 2008 to tackle homelessness – the <a href="http://www.federalfinancialrelations.gov.au/content/npa/housing/national-partnership/Transitional_Homelessness.pdf">National Partnership Agreement on Homelessness</a>. The latest agreement has more achievable performance indicators than its predecessors. It also requires the states to report on their annual financial contributions – a worthy step up for transparency. </p>
<p>But, at a time of growing population and enduring housing stress, the Commonwealth’s latest budget <a href="https://www.budget.gov.au/2017-18/content/glossies/factsheets/html/HA_17.htm">promise to maintain</a> its current funding contribution of A$1.3 billion for the housing agreement means there has been no increase in real funding. Keeping it at what it has been <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">isn’t enough to cover the costs of current services</a>, let alone increase them.</p>
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Read more:
<a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">Australia needs to reboot affordable housing funding, not scrap it</a>
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<p>So, there is a disconnect between the lofty goal of improving access to affordable, safe and sustainable housing and the funding capable of supporting it. Until this funding shortfall is addressed, any new national housing and homelessness agreements will continue to be essentially different in name only.</p>
<h2>What’s new this time?</h2>
<p>Compared to recent former agreements, three matters stand out as new or refreshed.</p>
<p>First is the policy breadth. Unlike its predecessors, the new agreement aspires to improve access to housing “across the housing spectrum”. This refers to the full suite of housing tenures – from crisis housing to home ownership. Within this spectrum the Commonwealth has set several immediate priorities:</p>
<ul>
<li>achieving an efficient, responsive and well-managed social housing system</li>
<li>support for community housing and affordable housing models that can viably increase housing supply</li>
<li>tenancy reform that encourages security of tenure in the private rental market</li>
<li>strategies to promote market supply and efficiency, including planning system reforms, land-release initiatives and support for home ownership.</li>
</ul>
<p>This broadened coverage is generally welcome, but it falls short of satisfying the <a href="http://everybodyshome.com.au/">calls for a national housing strategy</a>. This means many national policies with major impacts on housing demand and cost – such as taxes on housing investment, immigration levels and income support for renters – remain outside the influence of the agreement. Such policies also strongly influence the prospects of reducing housing stress.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/a-national-affordable-housing-strategy-necessary-attainable-and-maybe-on-its-way-49943">A national affordable housing strategy: necessary, attainable and maybe on its way</a>
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<p>The second, and arguably biggest, set of changes concerns accountability. This includes an expanded list of performance measures, the Commonwealth leading a standardised approach to data measures, and a formal independent Productivity Commission review of the agreement to be conducted within four years.</p>
<p>The new performance indicators replace the targets from 2008, which were never achieved. The failed measures were quantitative in nature, while the new ones simply adopt a requirement for progress (an increase or a decrease, as appropriate), which can be more readily achieved. </p>
<p>For example, the Rudd government’s pledge to halve the rate of homelessness by 2020 has shifted to “decreases in people experiencing homelessness and repeat homelessness”. Similarly, the 2008 commitment to reduce the proportion of low-income renter households experiencing <a href="http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/1370.0%7E2010%7EChapter%7ERental%20stress%20(5.4.2.1)">rental stress</a> by 10% has been replaced by a commitment to simply reduce the proportion of such households.</p>
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Read more:
<a href="https://theconversation.com/homeless-numbers-will-keep-rising-until-governments-change-course-on-housing-93417">Homeless numbers will keep rising until governments change course on housing</a>
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<p>A third feature is a requirement for states and territories to annually publish housing strategies. Stakeholders will be able to judge and compare the merit of these published blueprints. These will come after a new set of high-level bilateral agreements negotiated between each state and territory and the Commonwealth.</p>
<p>This highlights differences in housing conditions between jurisdictions and incorporates state-level priorities in addition to those of the Commonwealth. <a href="http://www.federalfinancialrelations.gov.au/content/housing_homelessness_agreement.aspx">Those published so far</a> vary considerably in ambition and specificity.</p>
<h2>The elephant in the room</h2>
<p>While there are positive directions in the new agreement, the funding deficit remains an issue. Despite not increasing its funding, the Commonwealth hopes the states and territories will increase theirs.</p>
<p>The Commonwealth, however, has failed to extend or replace other large housing programs that operated in the past decade. These included the now closed <a href="https://www.dss.gov.au/our-responsibilities/housing-support/programmes-services/national-rental-affordability-scheme">National Rental Affordability Scheme</a>, which resulted in over 36,000 new affordable rental houses, and a A$5 billion <a href="http://www.federalfinancialrelations.gov.au/content/npa/housing/national-partnership/past/remote_indigenous_housing_NP.pdf">national partnership</a> to improve housing supply and conditions in remote (largely Indigenous) communities. </p>
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Read more:
<a href="https://theconversation.com/we-wont-close-the-gap-if-the-commonwealth-cuts-off-indigenous-housing-support-91835">We won't close the gap if the Commonwealth cuts off Indigenous housing support</a>
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<p>As a result there is now less federal funding for new social and affordable housing than at any time over the last decade. </p>
<p><a href="https://www.ipart.nsw.gov.au/Home/Industries/Special-Reviews/Reviews/Affordable-Housing/Review-of-Social-and-Affordable-Housing-Rent-Models/04-Sep-2017-Final-Report/Final-Report-Review-of-rent-models-for-social-and-affordable-housing-July-2017;%20https:/treasury.gov.au/consultation/council-on-federal-financial-relations-affordable-housing-working-group-innovative-financing-models/;https:/www.ahuri.edu.au/research/final-reports/106">With so much detailed by so many</a> about the manifest inadequacy in funding required to meet housing need in Australia, we can regrettably predict that the new agreement will not contribute much at all to an increased supply of social and affordable housing. Indeed, this is tacitly acknowledged – the agreement’s carefully crafted performance indicators include no such measure.</p><img src="https://counter.theconversation.com/content/99936/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Vivienne Milligan receives funding from the Australian Housing and Urban Research Institute (AHURI) and the NSW Government. She is a non-executive director of the NSW Community Housing Industry Association.</span></em></p>Another affordable housing pact between the Commonwealth, states and territories came into effect this month. But with no new funding, the agreement may be different from predecessors in name only.Vivienne Milligan, Visiting Senior Fellow - City Futures Research Centre, Housing Policy and Practice, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/994032018-07-05T14:41:12Z2018-07-05T14:41:12ZCommunity housing fund: one fatal flaw could stop new homes being built<figure><img src="https://images.theconversation.com/files/226289/original/file-20180705-122271-1dr014i.jpg?ixlib=rb-1.1.0&rect=71%2C13%2C847%2C579&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="http://www.lilac.coop/">LILAC Leeds</a></span></figcaption></figure><p>Conservative MP James Brokenshire used his first speech as housing secretary to confirm £163m of funding for community-led housing initiatives, available through <a href="https://www.gov.uk/government/collections/community-housing-fund">a dedicated fund</a>. This is a welcome boost to a growing number of community-led housing organisations, which work to establish affordable housing projects, owned and run by community organisations, as opposed to private landlords, local authorities and housing associations.</p>
<p>Against the backdrop of the UK’s <a href="http://england.shelter.org.uk/campaigns_/why_we_campaign/the_housing_crisis/what_is_the_housing_crisis">severe housing shortage</a>, the government’s plan offers a welcome injection of funds to a previously under-resourced sector. Community land trusts, for example, <a href="http://www.communitylandtrusts.org.uk/what-is-a-clt/about-clts">have provided nearly 1,000 homes</a> for urban and rural communities to date, with limited access to public funds. But there’s an apparent oversight in the strategy, which could undermine the fund before it even begins to take effect. </p>
<p>While announcing the new community housing fund, the government also pledged that any new funding scheme will prohibit spending on the “unjustified use” of leaseholds on new houses, building on recent reforms that seek to curb the use of leaseholds and minimise overcharging by freeholders. Leaseholders typically own a property but not the land on which it is built, which is owned by the freeholder who charges ground rents and management costs. <a href="https://www.theguardian.com/money/2018/feb/22/freehold-on-disputed-birmingham-leasehold-flats-goes-on-sale">Recent scandals</a> have revealed significant and unreasonable charges imposed on leaseholders, which is why the government wishes to restrict the use of leaseholds. </p>
<p>Many community-led housing groups sell affordable homes on a leasehold basis, so that they can maintain strong and meaningful ties with the residents. This means they can respond to local needs and ensure that housing remains affordable for locals, by protecting it from rent hikes and property speculation. Retaining the freehold means community organisations can set restrictions on rent and resale prices, in order to ensure that housing remains affordable. </p>
<p>So, preventing spending on leasehold-based initiatives could undermine community-led housing groups, not to mention the effectiveness of the new community housing fund. </p>
<h2>Affordable housing</h2>
<p>Community land trusts, co-housing groups, housing co-operatives and community-based registered providers are usually started and managed by local community members. They typically provide affordable housing by means of specific ownership and tenancy arrangements. Developing and protecting affordable housing from private sale or speculation is often the main reason these groups form. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/226290/original/file-20180705-122265-r48iai.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/226290/original/file-20180705-122265-r48iai.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/226290/original/file-20180705-122265-r48iai.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/226290/original/file-20180705-122265-r48iai.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/226290/original/file-20180705-122265-r48iai.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/226290/original/file-20180705-122265-r48iai.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/226290/original/file-20180705-122265-r48iai.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/226290/original/file-20180705-122265-r48iai.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Under construction: Low Impact Living Affordable Community (LILAC) development in Leeds.</span>
<span class="attribution"><a class="source" href="http://www.lilac.coop/">LILAC Leeds.</a></span>
</figcaption>
</figure>
<p>In many cases, homes <a href="https://www.tandfonline.com/doi/abs/10.1080/14616718.2016.1198084">are delivered in places</a> that commercial speculative house builders or large housing associations are either unable or unwilling to develop. The community-led approach is proven to <a href="http://wessexca.co.uk/wp-content/uploads/2016/06/3016725-Wessex-Report.pdf">galvanise local support for housing</a>, overcoming potential objections to new development by giving locals power over the process through democratic governance structures and community-led planning processes.</p>
<p>But in England the community-led housing sector remains very small compared to many countries in Europe and the United States, delivering <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/721611/CHF_prospectus_-_FINAL.pdf">an estimated 400 units per year</a>. In the United States, there are around <a href="https://www.businesswire.com/news/home/20180427005122/en/Citi-Community-Development-Grounded-Solutions-Network-Announce">37,000 units</a> by community land trusts alone. The ring-fenced community housing fund represents the first substantial investment in the sector for many years. It should speed up the delivery of community-led housing in urban and rural areas, help the sector to grow and ensure that communities are able to access support and finance to develop affordable housing schemes that meet their local needs and preferences.</p>
<p>But the proposed ban on leasehold housing development – as well as the government’s ongoing efforts to make it easier for existing leaseholders to buy out their freeholds – could undermine these good intentions. That said, reform is needed to tackle bad practice in the private sector, <a href="https://www.gov.uk/government/news/crackdown-on-unfair-leasehold-practices">including escalating ground rents and unreasonable management charges</a>. But a blanket ban on leasehold development – which does not exempt community housing organisations, <a href="http://www.communitylandtrusts.org.uk/about-the-network/our-campaigns/leasehold-reform">in spite of long running campaigns</a> – will have a negative impact on current and future community-led housing schemes.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/226306/original/file-20180705-122259-mv4qty.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/226306/original/file-20180705-122259-mv4qty.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/226306/original/file-20180705-122259-mv4qty.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=417&fit=crop&dpr=1 600w, https://images.theconversation.com/files/226306/original/file-20180705-122259-mv4qty.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=417&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/226306/original/file-20180705-122259-mv4qty.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=417&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/226306/original/file-20180705-122259-mv4qty.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=524&fit=crop&dpr=1 754w, https://images.theconversation.com/files/226306/original/file-20180705-122259-mv4qty.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=524&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/226306/original/file-20180705-122259-mv4qty.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=524&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">New homes built by Cornwall Community Land Trust in Rame, Cornwall.</span>
<span class="attribution"><span class="source">Cornwall Community Land Trust.</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<h2>Under control</h2>
<p><a href="https://www.tandfonline.com/doi/abs/10.1080/09540962.2016.1266157">Previous studies</a> have shown that community-led groups often form and develop their organisations with the primary aim of providing affordable housing, so ground rents or management charges are usually set in fair ways, designed to ensure their housing remains affordable. Taking away the means to influence the cost and use of community-owned property could stymie such organisations before they get going. </p>
<p>The <a href="http://www.communitylandtrusts.org.uk/">National Community Land Trust Network</a> has called for community-led housing groups to be exempt from the ban on leasehold homes – but so far their requests have gone unanswered. The dedicated community housing fund provides significant funding, which could help the community-led housing sector grow. But the government must ensure that the law allows these groups to deliver genuinely affordable homes.</p><img src="https://counter.theconversation.com/content/99403/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Tom Moore has previously received funding from the British Academy and the National Community Land Trust Network.</span></em></p>The government’s £163m fund would provide much-needed boost for community-led housing organisations – but it might also take away their control over new developments.Tom Moore, University of LiverpoolLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/930622018-05-03T20:20:08Z2018-05-03T20:20:08ZMelbourne’s ‘doughnut city’ housed its homeless<p><em>This is the fourth article in our series, <a href="https://theconversation.com/au/topics/cities-for-everyone-53005">Cities for Everyone</a>, which explores how members of different communities experience and shape our cities, and how we can create better public spaces for everyone.</em></p>
<hr>
<p>Revitalisation projects aimed at increasing residential populations in inner urban areas since the 1980s have resulted in almost wholesale expulsion of the marginally housed. The now mythic “doughnut city” that Melbournians became so embarrassed about, and so proud to repopulate, was in fact a city that housed its homeless.</p>
<p>The critic <a href="https://www.theguardian.com/books/2017/jan/02/john-berger-obituary">John Berger</a> observed:</p>
<blockquote>
<p>The 20th-century consumer economy has produced the first culture for which a beggar is a reminder of nothing. </p>
</blockquote>
<p>We might ponder his concern in the Australian city today where the homeless have never been more visible and yet so ignored in mainstream urban discussion.</p>
<p>Infrastructure Australia’s recent report, <a href="http://infrastructureaustralia.gov.au/policy-publications/publications/future-cities.aspx">Future Cities: Planning for our growing population</a>, doesn’t mention homelessness once. This is sadly typical of major urban policy statements in the past few decades, many of which have championed inner-city renewal. </p>
<h2>From doughnut city to cafe society</h2>
<p>Melbourne, like most Western cities, experienced population decline in its core from the 1960s as relentless suburbanisation drew population outwards.</p>
<p>In 1977, the Melbourne Metropolitan Board of Works chairman, Alan Croxford, <a href="https://trove.nla.gov.au/version/44976437">lamented</a>:</p>
<blockquote>
<p>Melbourne’s trend towards a ‘doughnut’ type of development is revealing the first signs of serious problems experienced in other cities of the world. </p>
</blockquote>
<figure class="align-left zoomable">
<a href="https://images.theconversation.com/files/212173/original/file-20180327-109193-1ujvgrb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/212173/original/file-20180327-109193-1ujvgrb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/212173/original/file-20180327-109193-1ujvgrb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=726&fit=crop&dpr=1 600w, https://images.theconversation.com/files/212173/original/file-20180327-109193-1ujvgrb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=726&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/212173/original/file-20180327-109193-1ujvgrb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=726&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/212173/original/file-20180327-109193-1ujvgrb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=912&fit=crop&dpr=1 754w, https://images.theconversation.com/files/212173/original/file-20180327-109193-1ujvgrb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=912&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/212173/original/file-20180327-109193-1ujvgrb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=912&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The Department of Infrastructure’s 1998 report, From Doughnut City to Café Society.</span>
<span class="attribution"><span class="source">Author provided</span></span>
</figcaption>
</figure>
<p>Similarly, <a href="https://en.wikipedia.org/wiki/Jan_Gehl">Jan Ghel</a> describes Melbourne in the 1970s as a “<a href="http://assemblepapers.com.au/2013/06/13/cities-for-people-jan-gehl/">neutron-bombed</a>” city. The architectural commentator Norman Day portrayed it as “<a href="https://www.domain.com.au/news/future-cbd-hong-kong-without-the-beauty-20130821-2sa72/">an empty useless city centre</a>”. </p>
<p>The “doughnut” trope certainly stuck in the planning imagination. Urban strategies and programs in the 1990s were decidedly aimed at reintroducing a residential population and revitalising the city centre. </p>
<p>The <a href="http://www.melbourne.vic.gov.au/arts-and-culture/city-gallery/exhibition-archive/Pages/Postcode-3000---A-city-transformed.aspx">Postcode 3000</a> program and the Keys to the City campaign were a resounding success. Residential accommodation in central Melbourne increased from 738 units in the 1980s to 9,895 units by 2002. The figure today is nearly 30,000 units. </p>
<p>This renaissance has been retailed and celebrated globally. It is, however, partial truth. The uplift was certainly not felt by all.</p>
<h2>Melbourne when relief was cheap</h2>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/212174/original/file-20180327-109193-p7cbuv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/212174/original/file-20180327-109193-p7cbuv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=472&fit=crop&dpr=1 600w, https://images.theconversation.com/files/212174/original/file-20180327-109193-p7cbuv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=472&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/212174/original/file-20180327-109193-p7cbuv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=472&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/212174/original/file-20180327-109193-p7cbuv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=593&fit=crop&dpr=1 754w, https://images.theconversation.com/files/212174/original/file-20180327-109193-p7cbuv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=593&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/212174/original/file-20180327-109193-p7cbuv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=593&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Gordon House Lodgings in Little Bourke Street, in the late 1960s, had about 500 beds.</span>
<span class="attribution"><span class="source">Alan Jordan/State Library of Victoria</span></span>
</figcaption>
</figure>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/212175/original/file-20180327-109182-cj27t9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/212175/original/file-20180327-109182-cj27t9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/212175/original/file-20180327-109182-cj27t9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=677&fit=crop&dpr=1 600w, https://images.theconversation.com/files/212175/original/file-20180327-109182-cj27t9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=677&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/212175/original/file-20180327-109182-cj27t9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=677&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/212175/original/file-20180327-109182-cj27t9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=851&fit=crop&dpr=1 754w, https://images.theconversation.com/files/212175/original/file-20180327-109182-cj27t9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=851&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/212175/original/file-20180327-109182-cj27t9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=851&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Relocated to Lorimer Street, Gordon House had about 300 beds.</span>
<span class="attribution"><span class="source">Graeme Butler, 1982</span></span>
</figcaption>
</figure>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/212179/original/file-20180327-109182-9nqpt4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/212179/original/file-20180327-109182-9nqpt4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/212179/original/file-20180327-109182-9nqpt4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=478&fit=crop&dpr=1 600w, https://images.theconversation.com/files/212179/original/file-20180327-109182-9nqpt4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=478&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/212179/original/file-20180327-109182-9nqpt4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=478&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/212179/original/file-20180327-109182-9nqpt4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=600&fit=crop&dpr=1 754w, https://images.theconversation.com/files/212179/original/file-20180327-109182-9nqpt4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=600&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/212179/original/file-20180327-109182-9nqpt4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=600&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Aerial view of Gordon House on South Wharf, 1979.</span>
<span class="attribution"><span class="source">Wolfgang Sievers/National Library of Australia</span></span>
</figcaption>
</figure>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/214444/original/file-20180412-549-19unoty.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/214444/original/file-20180412-549-19unoty.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/214444/original/file-20180412-549-19unoty.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/214444/original/file-20180412-549-19unoty.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/214444/original/file-20180412-549-19unoty.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/214444/original/file-20180412-549-19unoty.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/214444/original/file-20180412-549-19unoty.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/214444/original/file-20180412-549-19unoty.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Aerial view of South Wharf showing the Melbourne Exhibition Centre, built in 1996, located where Gordon House used to be.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/popcorncx/155407300/">Stephen Edmonds/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span>
</figcaption>
</figure>
<p>The “doughnut city” in fact offered cheap accommodation for the marginal and homeless. This included night shelters, rooming houses, private residential hotels, and crisis accommodation. </p>
<p>Gauging the exact number of low-cost beds in the inner city at this time is difficult. Homeless population estimates and reported losses in crisis and transitional housing during this period give us some idea. </p>
<p><a href="https://trove.nla.gov.au/version/45881035">Alan Jordan’s</a> seminal work on Melbourne’s inner-city homeless population in 1973 noted: “… at any given time in the period there were at least 3,000 and probably 4,000 homeless men within two or three miles of the centre of Melbourne who were currently using night shelters, lodging houses and handouts”.</p>
<p>A <a href="https://trove.nla.gov.au/version/39840716">1984 report on the City of Melbourne</a> and its homeless indicated that about 3,700 rooming house rooms were available for rent. These housed an estimated 4,500 people.</p>
<p>In 1990, <a href="https://trove.nla.gov.au/version/7352771">a report by the Council for Homeless Persons and the Victorian Council of Churches</a> estimated that each night, within 5 kilometres of the GPO, there were 4,000 people in large rooming houses and private hotels, 930 in crisis accommodation, and 530 in squats and sleeping rough. The report estimated that rooming house stock had shrunk by 48% in the seven years from 1981 to 1988. </p>
<p>The erosion of low-cost accommodation in the 1980s and ’90s made way for the repopulation of inner Melbourne. A <a href="https://trove.nla.gov.au/work/8662720">1998 study on rough sleeping</a> commissioned by the City of Melbourne reported an overall reduction of 78% in short-term housing stock between 1987 and 1997. This amounted to the loss of 1,400 crisis accommodation and low-cost hotel beds. </p>
<p>This transitional housing was hardly ideal, but its loss deprived homeless people of temporary shelter and no doubt contributed to burgeoning numbers of rough sleepers. It also signifies that Melbourne’s “doughnut city” was never entirely hollowed out. It offered relief to, and was occupied by, the homeless.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/homeless-numbers-will-keep-rising-until-governments-change-course-on-housing-93417">Homeless numbers will keep rising until governments change course on housing</a>
</strong>
</em>
</p>
<hr>
<h2>More homeless, more visible</h2>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/212180/original/file-20180327-109196-1pxizul.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/212180/original/file-20180327-109196-1pxizul.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/212180/original/file-20180327-109196-1pxizul.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=746&fit=crop&dpr=1 600w, https://images.theconversation.com/files/212180/original/file-20180327-109196-1pxizul.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=746&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/212180/original/file-20180327-109196-1pxizul.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=746&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/212180/original/file-20180327-109196-1pxizul.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=938&fit=crop&dpr=1 754w, https://images.theconversation.com/files/212180/original/file-20180327-109196-1pxizul.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=938&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/212180/original/file-20180327-109196-1pxizul.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=938&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Remnants of Melbourne’s Skid Row: Three private hotels on the corner of Spencer and Flinders streets had about 268 low-cost rooms, early 1980s.</span>
<span class="attribution"><span class="source">Public Record Office Victoria</span></span>
</figcaption>
</figure>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/212182/original/file-20180327-109193-18z8gq9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/212182/original/file-20180327-109193-18z8gq9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/212182/original/file-20180327-109193-18z8gq9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=413&fit=crop&dpr=1 600w, https://images.theconversation.com/files/212182/original/file-20180327-109193-18z8gq9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=413&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/212182/original/file-20180327-109193-18z8gq9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=413&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/212182/original/file-20180327-109193-18z8gq9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=519&fit=crop&dpr=1 754w, https://images.theconversation.com/files/212182/original/file-20180327-109193-18z8gq9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=519&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/212182/original/file-20180327-109193-18z8gq9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=519&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Sir Charles Hotham Hotel on Skid Row, which sold last year for a speculated $30 million.</span>
<span class="attribution"><span class="source">Melbourne History Workshop</span></span>
</figcaption>
</figure>
<p>Recently released 2016 Census results estimate about <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/2049.0Main+Features12016?OpenDocument">116,000 people are homeless</a> on any given night in Australia. Rough sleepers represent just 7% of the homeless population, but are <a href="http://www.abc.net.au/news/2018-02-09/curious-melbourne-causes-of-homelessness-increase/9400502">increasingly visible</a> in Australian cities. </p>
<p>In Melbourne, the increasing visibility of homelessness sits jarringly alongside its growing prestige as a thriving, culturally diverse and vibrant city. <a href="https://www.theguardian.com/australia-news/2017/aug/16/melbourne-worlds-most-liveable-city-for-seventh-year-running">Being crowned the world’s “most liveable city”</a> seven years in a row has helped to resurrect the narrative of “Marvellous Melbourne”. </p>
<p>Significant work has been done over this time to provide specialist homelessness services and support in the inner city. But accompanying low-cost accommodation to house the users of these services has become ever more residual. With about <a href="http://www.housing.vic.gov.au/file/3301/">36,000 applicants on the social housing register</a>, and <a href="https://theconversation.com/homeless-numbers-will-keep-rising-until-governments-change-course-on-housing-93417">very little increase in supply</a>, the demand for crisis and transitional accommodation is mounting. </p>
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<h2>Urban renaissance, a mixed tale</h2>
<p>Urban redevelopment and displacement are intertwined trends familiar to many cities around the world. As with Melbourne, these revitalisation stories are often partial accounts, which smother more subjugated histories of a city. </p>
<p>By celebrating the demise of a doughnut city and its replacement by a superior café society, “liveable Melbourne” overlooks the vast dispersal that made way for a residential population that reinforces the commercial prospects of the city. The previous, more marginal city dwellers are simply abandoned. <a href="https://www.theage.com.au/politics/victoria/vulnerable-public-housing-tenants-in-limbo-as-redevelopments-proceed-20180401-p4z7br.html">Versions of this are recurring today</a>. </p>
<p>None of this is to wish a return to the past but to remind us of what can be lost in contemporary urban narratives – in this case Melbourne’s history of homeless occupation and subsequent displacement.</p>
<p>To heed Berger, the swelling of homelessness should remind us of the property dysfunction and spatial injustice that underlie our cities’ seeming prosperity. We can celebrate successes, but must also concede that urban renaissance is often a mixed tale of blinding optimism for the elite and cruel loss for the poor. Planning for future cities ought to take more care. </p>
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Read more:
<a href="https://theconversation.com/voices-of-residents-missing-in-a-time-of-crisis-for-public-housing-93655">Voices of residents missing in a time of crisis for public housing</a>
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<p><em>You can find other articles in the series <a href="https://theconversation.com/au/topics/cities-for-everyone-53005">here</a>.</em></p><img src="https://counter.theconversation.com/content/93062/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Brendan Gleeson receives funding from Australian Research Council and the UK Economic and Social Research Council.</span></em></p><p class="fine-print"><em><span>Claire Collie does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>When the city centre was revitalised in the 1990s, homeless people were pushed out. With homelessness rising today, it’s important to recognise the links between urban development and displacement.Claire Collie, PhD candidate in Urban Planning, The University of MelbourneBrendan Gleeson, Director, Melbourne Sustainable Society Institute, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/933662018-03-27T19:12:22Z2018-03-27T19:12:22ZMission nearly impossible: the City of Sydney’s efforts to increase the affordable housing supply<figure><img src="https://images.theconversation.com/files/211639/original/file-20180322-54875-pli3c6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Exordium Apartments at Zetland, built by City West Housing, provide affordable, high-quality housing to key workers within the City of Sydney.</span> <span class="attribution"><span class="source">Alan Morris</span>, <span class="license">Author provided</span></span></figcaption></figure><p>A <a href="http://www.cityofsydney.nsw.gov.au/__data/assets/pdf_file/0006/119544/FINAL_DCP2010_GlebeAHP_010711.pdf">key goal</a> of the City of Sydney, one of Australia’s wealthiest local governments, is to deliver “a range of affordable and social housing options that reflects the diversity of ages, family relationships, socio-economic backgrounds and employment fields in the local population”. <a href="https://localgovernmentandhousing.com/">Our research</a> includes in-depth analysis of the experiences of local governments with housing, among them the City of Sydney. This article examines what the city council is doing to provide more affordable housing and the obstacles, which include federal and state government policies, to achieving its targets. </p>
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Read more:
<a href="https://theconversation.com/key-workers-like-nurses-and-teachers-are-being-squeezed-out-of-sydney-this-is-what-we-can-do-about-it-91476">Key workers like nurses and teachers are being squeezed out of Sydney. This is what we can do about it</a>
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<p>The city council has <a href="http://www.cityofsydney.nsw.gov.au/__data/assets/pdf_file/0010/127369/affordable_rental_housing_strategy_amendments_FINAL_180510.pdf">committed</a> to ensuring that “by 2030, of all housing in the [Local Government Area] 7.5% will be social housing and 7.5% will be affordable housing delivered by ‘not-for-profit’ or other providers”. In absolute numbers this translates to 10,500 social housing units and 10,500 affordable homes.</p>
<p>The major challenge is providing affordable rental housing. It is projected that by 2030 there will be at least 138,000 dwellings in the inner-city area administered by the City of Sydney. That’s an increase of nearly 40,000 from <a href="http://www.cityofsydney.nsw.gov.au/__data/assets/pdf_file/0017/251153/City-of-Sydney-Housing-Issues-Paper-April-2015.pdf">98,012 dwellings in 2014</a>. To achieve the 7.5% affordable housing target, another 9,700 affordable rental homes need to be <a href="http://www.cityofsydney.nsw.gov.au/__data/assets/pdf_file/0019/231328/150421_PDC_ITEM02_ATTACHMENTA.PDF">built by 2030</a>.</p>
<p>Despite the city council’s best intentions, the <a href="https://theconversation.com/affordable-housing-finger-pointing-politics-and-possible-policy-solutions-75703">affordable and social housing</a> stock has hardly grown over the last decade. The social housing stock has increased from 9,397 in 2007 to 9,561 dwellings in June 2017. Affordable rental housing has gone from <a href="http://www.cityofsydney.nsw.gov.au/__data/assets/pdf_file/0012/289497/Research-Housing-Audit-June-2017.pdf">447 to 835 dwellings</a>.</p>
<p>The council recognises the constraints of the policy environment in which it is working. Its documents often refer to how federal and state government policies limit the local government’s capacity to improve housing affordability. The city <a href="http://www.cityofsydney.nsw.gov.au/__data/assets/pdf_file/0010/127369/affordable_rental_housing_strategy_amendments_FINAL_180510.pdf">clearly realises</a> that:</p>
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<p>The Commonwealth government and the state governments … control the macro-economic and taxation policies that most affect the cost of housing.</p>
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<p>Another <a href="http://www.cityofsydney.nsw.gov.au/__data/assets/pdf_file/0017/251153/City-of-Sydney-Housing-Issues-Paper-April-2015.pdf">document</a> emphasises:</p>
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<p>State planning laws affect the ways that local governments can supply housing.</p>
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Read more:
<a href="https://theconversation.com/high-housing-costs-create-worries-for-city-tourism-and-hospitality-57347">High housing costs create worries for city tourism and hospitality</a>
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<p>The City of Sydney uses the following overlapping mechanisms to increase the affordable housing supply: levies on developers; voluntary planning agreements; and selling land “at a subsidy”.</p>
<h2>Developer levies</h2>
<p>Developer levies are the key mechanism the council uses to increase the number of affordable homes. </p>
<p>State law enables the use of an affordable housing levy. The city <a href="http://www.cityofsydney.nsw.gov.au/__data/assets/pdf_file/0014/133160/GreenSquareAffordableHousingProgram.pdf">notes</a> that Section 94F of the Environmental Planning and Assessment Act 1979 “allows for the collection of contributions for affordable housing”. The provisions allow for either land or monetary contributions for affordable housing.</p>
<p>To date, the state government has allowed the city to levy developers in only three localities – <a href="http://www.cityofsydney.nsw.gov.au/vision/green-square">Green Square</a>, Ultimo-Pyrmont and “<a href="http://www.cityofsydney.nsw.gov.au/vision/changing-urban-precincts/southern-employment-lands">southern employment lands</a>”. Over time it is expected the levies in these three areas will yield <a href="https://www.uts.edu.au/sites/default/files/2017-10/City%20of%20Sydney%20report%20-%2018%20Sept%202017-ippg.pdf">2,300 affordable homes</a>.</p>
<p>The levy rate in Green Square and the southern employment lands is set at 3% of total residential floor space and 1% of non-residential floor space. For Pyrmont-Ultimo it is 0.8% of residential floor space and 1.1% of non-residential floor space. </p>
<p>Sydney Lord Mayor Clover Moore has urged the state government to extend the developer levy. She has argued that not allowing the levy city-wide was a “<a href="http://www.abc.net.au/news/2016-07-28/calls-developer-levy-extension-to-increase-housing-affordability/7670572">tremendous missed opportunity</a>”. </p>
<p>Moore has <a href="https://www.domain.com.au/news/calls-for-higher-affordable-housing-targets-as-more-people-on-cusp-of-poverty-20170802-gxo11s/">advocated</a> for a 30% affordable housing target for public land and 15% for developments on private land. It is evident that restricting the developer levy to just a few locations and to 3% makes this target impossible to attain.</p>
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Read more:
<a href="https://theconversation.com/if-youre-serious-about-affordable-sydney-housing-premier-heres-a-must-do-list-71791">If you're serious about affordable Sydney housing, Premier, here's a must-do list</a>
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<h2>Voluntary planning agreements</h2>
<p>A <a href="http://vparegister.planning.nsw.gov.au/">voluntary planning agreement</a> (VPA) is “an agreement entered into by a planning authority and a developer”. Under this agreement a developer can agree to fund affordable housing. This <a href="http://vparegister.planning.nsw.gov.au/">can be done through</a> “the dedication of land, monetary contributions, construction of infrastructure [and] provision of materials for public benefit and/or use”.</p>
<p>The City of Sydney <a href="http://www.cityofsydney.nsw.gov.au/__data/assets/pdf_file/0017/251153/City-of-Sydney-Housing-Issues-Paper-April-2015.pdf">uses such planning agreements</a> “to negotiate affordable housing provision through major developments”.</p>
<p>For example, a VPA for a A$1.1 billion development, 1,250 units in Forest Lodge, involved the developer agreeing to supply land for affordable rental apartments for low and moderate income earners. The city then sold the land to City West Housing, a community housing provider, at a discounted price. City West <a href="http://www.cityofsydney.nsw.gov.au/vision/changing-urban-precincts/harold-park">plans to build 76 affordable housing units</a> on this land.</p>
<p>The <a href="http://www.cityofsydney.nsw.gov.au/vision/changing-urban-precincts/harold-park">money from the land sale goes into</a> a “city fund dedicated to delivering more affordable developments across the local area”.</p>
<h2>Discounted land sales to community housing providers</h2>
<p>Selling land at a subsidised price to community housing providers is a key strategy. The City of Sydney sells the land on the proviso that it is used solely for affordable housing in perpetuity.</p>
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<a href="https://images.theconversation.com/files/211657/original/file-20180323-54887-1k8sdva.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/211657/original/file-20180323-54887-1k8sdva.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/211657/original/file-20180323-54887-1k8sdva.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/211657/original/file-20180323-54887-1k8sdva.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/211657/original/file-20180323-54887-1k8sdva.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/211657/original/file-20180323-54887-1k8sdva.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/211657/original/file-20180323-54887-1k8sdva.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/211657/original/file-20180323-54887-1k8sdva.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">The Exordium Apartments were built on part of the old South Sydney Hospital Site, which Sydney City sold to City West Housing.</span>
<span class="attribution"><span class="source">Alan Morris</span>, <span class="license">Author provided</span></span>
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<p>In 2014, a disused hospital site was sold to City West Housing. City West built just over 100 affordable housing units there. The <a href="http://citywesthousing.com.au/news-and-media/latest-development-officially-opens-the-exordium-apartments-at-zetland">development was completed</a> in 2016. </p>
<p>More recently, the City sold 8,900 square metres of land in Alexandria, an inner-city suburb, to community housing providers. The major buyer, City West Housing, <a href="http://www.afr.com/real-estate/affordable-housing-city-of-sydney-sells-alexandria-land-to-community-providers-20170619-gwtze">plans to build 200 homes there</a>.</p>
<p>A major barrier to affordable housing supply in the inner city has been the state government’s reluctance to agree that affordable housing should be a sizeable proportion of the housing to be built on state owned or controlled land that is being renewed. </p>
<p>UrbanGrowth NSW, the state’s primary urban transformation agency, is redeveloping significant tracts of state land in the Sydney City area. However, almost all of the envisaged new housing on UrbanGrowth sites at this stage appear to be <a href="https://www.smh.com.au/national/nsw/government-developer-hopes-like-hell-he-can-build-affordable-housing-in-sydney-20160811-gqq56j.html">geared towards middle-class households</a>. A highest-return-for-the-land motif is driving planning decisions.</p>
<p>The conclusion is clear: if local government is to create a sizeable affordable housing sector it is vital that the state and federal governments play a major role. Local governments, however powerful and well resourced, cannot do it by themselves.</p>
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Read more:
<a href="https://theconversation.com/budget-2017-charts-new-social-and-affordable-housing-agenda-76794">Budget 2017 charts new social and affordable housing agenda</a>
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<img src="https://counter.theconversation.com/content/93366/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Alan Morris receives funding from the Australian Research Council as part of an ARC Linkage project,
Local Government and Housing in Australia for the 21st Century.</span></em></p>If local government is to deliver affordable housing, state and federal governments must assist. Even councils as powerful and well resourced as the City of Sydney cannot do it by themselves.Alan Morris, Research Professor, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/934172018-03-16T00:12:58Z2018-03-16T00:12:58ZHomeless numbers will keep rising until governments change course on housing<p>Ten years ago the Australian government launched a National Partnership Agreement on Homelessness (<a href="https://www.homelessnessaustralia.org.au/campaigns/npah-campaign">NPAH</a>). It injected A$800 million into homelessness services and A$300 million to build 600 new homes for people experiencing homelessness. It was later announced that another A$400 million would be available under the National Affordable Housing Agreement (<a href="https://www.dss.gov.au/housing-support/programmes-services/national-affordable-housing-agreement">NAHA</a>) to build new housing and supported accommodation for the homeless. Total recurrent expenditure (at 2016-17 prices) on homelessness services has <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2018/housing-and-homelessness/homelessness-services/rogs-2018-partg-chapter19.pdf">increased by 28.8%</a>, from A$634.2 million in 2012-13 to A$817.4 million in 2016-17. </p>
<p>But despite this, the number of people experiencing homelessness and the rate of homelessness have both increased. Our research points to problems in the public housing system as one of the more important causes of these increases.</p>
<p><a href="http://www.abs.gov.au/ausstats/abs%40.nsf/mediareleasesbyCatalogue/0DB52D24450CC7ACCA257A7500148E4C?OpenDocument">According to census figures</a> released on Wednesday by the Australian Bureau of Statistics (ABS), the number of homeless people in Australia has risen by 14% to 116,427. The rate of homelessness has increased from 47.6 people per 10,000 of the population in 2011, to 49.8 per 10,000 now. (The ABS defines homelessness <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/4922.0Main%20Features22012?opendocument&tabname=Summary&prodno=4922.0&issue=2012&num=&view=">here</a>.) </p>
<p>There is some good news: the numbers of Indigenous homeless and homeless children and youth (aged 12-18) have declined by 26%, 11% and 7% respectively since 2011. But on the downside, increases are particularly pronounced in New South Wales (where the homelessness rate <a href="http://abs.gov.au/ausstats/abs@.nsf/Latestproducts/2049.0Main%20Features12016?opendocument&tabname=Summary&prodno=2049.0&issue=2016&num=&view=">rose by 27%</a> and among people aged over 65 (by just over 30%) and overseas-born migrants (by 40%).</p>
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Read more:
<a href="https://theconversation.com/more-and-more-older-australians-will-be-homeless-unless-we-act-now-87685">More and more older Australians will be homeless unless we act now</a>
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<h2>Why are we still going backwards?</h2>
<p>Changes in Australian housing and welfare systems and wider social and economic developments appear to have more than offset any benefits from the NPAH and NAHA. <a href="https://www.ahuri.edu.au/research/final-reports/248">Our research</a> sheds some light on the role played by Australia’s housing system. Using the internationally recognised and unique <a href="http://melbourneinstitute.unimelb.edu.au/journeys-home">Journeys Home</a> longitudinal survey, we find that public housing is the most important factor in preventing homelessness among vulnerable people. </p>
<p>Public housing is particularly effective because it is affordable. It has also traditionally offered a long-term refuge for precariously housed people. This is because public housing leases provide the benefits of security of tenure commonly associated with home ownership. </p>
<p>It is perhaps no accident that NSW was one of the first states to introduce fixed-term tenancies in public housing. This eroded one of the major attributes of tenure, in a state that has seen relatively large increases in homelessness numbers. </p>
<p>The empirical evidence also suggests that community housing fails to provide the same protection for people at risk of homelessness. While community housing is affordable, the security of tenure is weaker, which may explain these findings.</p>
<p>Despite such evidence, the stock of public housing continued to decline between the 2011 and 2016 censuses. State government-initiated transfers of stock to the community housing sector accelerated this trend. In 2013 Australia had a public housing stock of 325,226 dwellings. This declined by 3.2% to <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2018/housing-and-homelessness/housing/rogs-2018-partg-chapter18.pdf">314,864 usable dwellings in 2017</a>.</p>
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Read more:
<a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">Australia needs to reboot affordable housing funding, not scrap it</a>
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<h2>Where are the additional homeless coming from?</h2>
<p>One of the more alarming changes is a sharp increase in the number of homeless people over 65. This partly reflects Australia’s ageing population. However, the increase is such that the elderly’s share of the total homelessness count has also risen. </p>
<p>Furthermore, our <a href="https://www.ahuri.edu.au/research/final-reports/248">research</a> suggests that this trend could become protracted. This is because the homeless elderly have much less chance of escaping into formal housing than younger people experiencing homelessness. We have little understanding of the reasons for this, but <a href="https://www.missionaustralia.com.au/news-blog/news-media/mission-australia-report-shows-homelessness-is-a-growing-concern-for-older-Australians">gaps in service provision</a> to the aged could be partly responsible.</p>
<p>The other group who feature prominently among the homeless are overseas migrants. They now make up 46% of the homeless, despite representing just 28% of the Australian population. The number of homeless overseas-born migrants has soared by 40% since the 2011 Census, from 38,085 to 53,606 people.</p>
<p>It turns out that homeless overseas-born migrants are concentrated among those living in severely overcrowded dwellings – a little over half of those living in these conditions were born overseas. We know little about these homeless people. <a href="https://theconversation.com/a-white-face-can-be-a-big-help-in-a-discriminatory-housing-market-52962">Discrimination could be a factor</a>, though some <a href="https://www.facs.nsw.gov.au/about_us/media_releases/2016-census-homelessness-estimates">characterise this group as students living in group households</a> who should not be considered homeless. But this is speculation and further study is certainly required.</p>
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<strong>
Read more:
<a href="https://theconversation.com/ghost-hunting-will-the-census-reveal-the-true-scale-of-homelessness-in-australia-63336">Ghost-hunting: will the census reveal the true scale of homelessness in Australia?</a>
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<p>In view of the latest census results, it is clear to us that governments need to reassess their approach to what is turning into an intractable social problem. </p>
<p>We do not deny that situational factors, such as drug abuse, domestic violence and so forth, are important here. But equally, there is strong evidence that structural problems in our housing market are a significant cause of growth in the numbers of homeless people. </p>
<p>Until these problems are resolved, service provision and support will remain a band-aid masking deeper social and housing system issues.</p><img src="https://counter.theconversation.com/content/93417/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Gavin Wood receives funding from the Australian Housing and Urban Research Institute. </span></em></p><p class="fine-print"><em><span>Guy Johnson receives funding from Unison Housing.</span></em></p><p class="fine-print"><em><span>Juliet Watson receives funding from Unison Housing. </span></em></p><p class="fine-print"><em><span>Rosanna Scutella was Deputy Director of the Journeys Home study, which was funded by the Commonwealth Department of Social Security.</span></em></p>A decade after the launch of a national campaign to reduce homelessness, the latest figures show Australia is going backwards. Research points to problems in the public housing system as a key factor.Gavin Wood, Emeritus Professor of Housing and Housing Studies, RMIT UniversityGuy Johnson, Professor, Urban Housing and Homelessness, RMIT UniversityJuliet Watson, Lecturer, Urban Housing and Homelessness, RMIT UniversityRosanna Scutella, Senior Research Fellow, Centre for Applied Social Research, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/929932018-03-14T19:00:45Z2018-03-14T19:00:45ZAffordable housing policy failure still being fuelled by flawed analysis<p>Australia has a housing affordability problem. There’s no doubt about that. Unfortunately, one of the reasons the problem has become so entrenched is that the policy conversation appears increasingly confused. It’s time to debunk some policy clichés that keep re-emerging.</p>
<h2>Is ‘zoning’ to blame?</h2>
<p>It can be tempting to frame the housing affordability problem as all about inadequate new supply. According to this argument, the “demand side” drivers – such as low interest rates and tax incentives for property investment – have combined with population growth in the capital cities to fuel house prices, and new housing construction simply hasn’t kept up. </p>
<p><a href="https://theconversation.com/rba-research-shows-that-zoning-restrictions-are-driving-up-housing-prices-93064">“Zoning” is often blamed</a>. There is little hard evidence, though, to show systematic regulatory constraint. </p>
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Read more:
<a href="https://theconversation.com/why-housing-supply-shouldnt-be-the-only-policy-tool-politicians-cling-to-72586">Why housing supply shouldn't be the only policy tool politicians cling to</a>
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<h2>Supply is at record highs, and in the right places</h2>
<p>Australia’s new housing supply per capita is actually <a href="https://theconversation.com/australias-almost-a-world-leader-in-home-building-so-that-isnt-a-fix-for-affordability-73514">very strong by international standards</a>. Over the past decade, supply of new units and apartments has been flowing in <a href="https://www.ahuri.edu.au/research/final-reports/281">job-rich metropolitan areas with dense populations</a>, which are also higher-value locations. </p>
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<p>According to the cliché, this supply response should have cooled prices. Yet dwelling price inflation has surged even in metropolitan areas where <a href="https://theconversation.com/get-used-to-your-commute-data-confirms-houses-near-jobs-are-too-expensive-77867">new housing supply has exceeded population growth</a>. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australias-almost-a-world-leader-in-home-building-so-that-isnt-a-fix-for-affordability-73514">Australia's almost a world leader in home building, so that isn't a fix for affordability</a>
</strong>
</em>
</p>
<hr>
<h2>The fallacies of ‘filtering’</h2>
<p>One of the great hopes underpinning the supply cliché is that new housing stock improves affordability even if these homes are not affordable for lower-income groups. This faith is based on a theory called “filtering” whereby older housing moves down to the affordable end of the market over time. </p>
<p>The empirical data on filtering are thin. Indeed, the academic literature has historically cast <a href="http://www.jstor.org/stable/3144430?seq=1#page_scan_tab_contents">doubt on the theory</a>. However, some commentators continue to claim that American rental housing markets provide evidence that “filtering” can occur in practice.</p>
<p>But whatever might happen in the US, in Australia there’s still no evidence to suggest new housing supply has filtered across the housing stock to expand affordable housing opportunities for low-income Australians, or that it will do so any time soon. </p>
<p>Prominent economists continue to produce data that suggest the potential <a href="http://www.appliedeconomics.com.au/pubs/reports-and-journals/2017/">impact of new supply on price is minimal</a>. The <a href="https://www.ahuri.edu.au/research/final-reports/241">shortage of affordable housing opportunities for low-income households</a> in Australia remains persistent. And the evidence indicates that low-income working households in our cities consistently <a href="https://www.ahuri.edu.au/data/assets/pdf_file/0015/7431/AHURI_Final_Report_No261_Housing-affordability-central-city-economic-productivity-and-the-lower-income-labour-market.pdf">face housing costs well above accepted affordability levels</a> regardless of the quality of the housing they live in. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/key-workers-like-nurses-and-teachers-are-being-squeezed-out-of-sydney-this-is-what-we-can-do-about-it-91476">Key workers like nurses and teachers are being squeezed out of Sydney. This is what we can do about it</a>
</strong>
</em>
</p>
<hr>
<h2>Sustaining supply in a cooling market?</h2>
<p>Some <a href="https://grattan.edu.au/news/beware-what-you-wish-for-sydney/">commentators</a> cite cooling house prices as evidence that the supply response is taking effect. Whether or not that is so (above and beyond demand-side factors like higher interest rates for investor loans), expect the pipeline to start slowing down.
Private sector development is driven by profit and risk and, as we have seen over many years, is characterised by speculative booms and busts. </p>
<p>Developers can turn off the new supply tap much more quickly than they can turn it on. Falling prices, weak consumer sentiment and economic uncertainty mean many developers will not follow through on building approvals until the market recovers. </p>
<p>This means that high levels of supply output are rarely sustained. Recent housing data in Western Australia provide a case in point. WA recorded rising completions in 2014, 2015 and 2016. But 2017 completion figures are expected to show a drop of around a third as prices have shaded off since the end of the mining boom. </p>
<p>Put simply, the market on its own will never solve Australia’s housing affordability problem. Expecting developers to keep building in order to reduce house prices is pure fantasy. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/solutions-beyond-supply-to-the-housing-affordability-problem-67536">Solutions beyond supply to the housing affordability problem</a>
</strong>
</em>
</p>
<hr>
<h2>Planning reform is not an affordable housing strategy</h2>
<p>We’ve written before about the political appeal of calling for planning reform
instead of <a href="https://theconversation.com/solutions-beyond-supply-to-the-housing-affordability-problem-67536">real solutions to housing affordability pressures</a>. In fact, Australian states have embarked on more than a <a href="https://www.tandfonline.com/doi/full/10.1080/17487870.2015.1065184?src=recsys">decade of planning reforms</a>. </p>
<p>They have aimed to: standardise and simplify <a href="https://www.tandfonline.com/doi/abs/10.1080/14616718.2013.840110">planning rules</a>; promote mixed use and higher-density housing near train stations; and overcome local political opposition to development through the use of independent expert panels. </p>
<p>Housing targets for both urban infill and new greenfield areas have been a feature of metropolitan plans to drive dwelling approval rates since at least 2000. </p>
<p>These reforms have been effective in overcoming regulatory constraints. The scale of the recent supply response shows clearly that zoning and development assessment processes are not inhibiting residential development approvals in cities like Sydney and Melbourne. </p>
<p>But trying to accommodate Australia’s population growth in towers around railway stations will fail as an affordable housing strategy – even if “zoning” and height rules were completely scrapped. </p>
<p>Rather than narrow deregulation agendas, bigger picture reforms are needed. Aligning infrastructure funding with metropolitan and regional decentralisation is a critical <a href="https://theconversation.com/a-more-sustainable-australia-from-suburbia-to-newburbia-16841">long-term strategy</a>. Reforms to deliver affordable housing in communities supported by new infrastructure are long overdue.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/tackling-housing-unaffordability-a-10-point-national-plan-43628">Tackling housing unaffordability: a 10-point national plan</a>
</strong>
</em>
</p>
<hr>
<h2>A bigger affordable housing sector is needed</h2>
<p>Australia needs a more realistic assessment of the housing problem. We can clearly generate significant dwelling approvals and dwellings in the right economic circumstances. Yet there is little evidence this new supply improves
affordability for lower-income households. Three years after the peak of the WA housing boom, these households are <a href="https://www.planning.wa.gov.au/dop_pub_pdf/Housing_Industry_Forecasting_Group_Oct_Report_2017.pdf">no better off in terms of affordability</a>. </p>
<p>In part, this may reflect that fact that significant numbers of new homes appear not to house anyone at all. A recent <a href="https://www.businessinsider.com.au/census-2016-almost-one-in-five-homes-built-in-australia-are-unoccupied-2017-6">CBA report</a> estimated that 17% of dwellings built in the four years to 2016 remained unoccupied. </p>
<p>If we are serious about delivering greater affordability for lower-income Australians, then policy needs to deliver housing supply directly to such households. This will include more affordable supply in the private rental sector, ideally through investment driven by large institutions such as super funds. And for those who cannot afford to rent in this sector, investment in the community housing sector is needed. </p>
<p>In capital city markets, new housing built for sale to either home buyers or landlords is simply not going to deliver affordable housing options unless a portion is reserved for those on low or moderate incomes.</p><img src="https://counter.theconversation.com/content/92993/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nicole Gurran receives funding from the Australian Housing and Urban Research Institute. </span></em></p><p class="fine-print"><em><span>Bill Randolph receives funding from the Australian Research Council, the Australian Housing and Urban Research Institute and Landcom. He is a Director of ShelterNSW.</span></em></p><p class="fine-print"><em><span>Peter Phibbs receives funding from the Australian Housing and Urban Research Institute.</span></em></p><p class="fine-print"><em><span>Rachel Ong receives funding from the Australian Housing and Urban research Institute. </span></em></p><p class="fine-print"><em><span>Steven Rowley is Director of the Australian Housing and Urban Research Institute's Curtin Research Centre. He receives funding from the Australian Housing and Urban Research Institute and the Bankwest Curtin Economics Centre. He is chair of the Housing Industry Forecasting Group in Western Australia</span></em></p>The clichés about housing supply and regulatory restraints are distractions from the need to focus on expanding the affordable housing sector to directly meet the needs of low-income households.Nicole Gurran, Professor of Urban and Regional Planning, University of SydneyBill Randolph, Director, City Futures Research Centre, Faculty of the Built Environment, UNSW SydneyPeter Phibbs, Director, Henry Halloran Trust, University of SydneyRachel Ong ViforJ, Professor of Economics, School of Economics and Finance, Curtin UniversitySteven Rowley, Director, Australian Housing and Urban Research Institute, Curtin Research Centre, Curtin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/845082017-10-10T19:13:18Z2017-10-10T19:13:18ZSome states do better than others on affordable housing – we can learn from the successes<figure><img src="https://images.theconversation.com/files/189122/original/file-20171006-25772-4lxbmq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The Living Space development in Cockburn, Western Australia, has won praise as an innovative mixed-use social housing project.</span> <span class="attribution"><a class="source" href="http://www.hhawa.com.au/featured-projects/cockburn-central/">Courtesy of HHA Projects</a></span></figcaption></figure><p>Doing something about improving housing affordability, particularly for people on low and moderate incomes, is difficult for Australian politicians. The core of the problem is simple: until those trying to buy a home outnumber those who own one, governments will not adopt policies to bring down house prices. As John Howard once observed, no-one came up to him complaining their house price had increased. </p>
<p>Given the public anxiety about the issue, particularly among young people, governments are showing renewed interests in doing something about housing affordability. So what sort of government interventions are effective? <a href="https://www.ahuri.edu.au/research/final-reports/289">A new report</a> from the Australian Housing and Urban Research Institute (AHURI), released today, explores these issues state by state. And some are clearly doing better than others. </p>
<h2>What have governments been doing?</h2>
<p>In the last six months governments at all levels have released housing affordability plans. The Victorian government released a <a href="http://www.vic.gov.au/affordablehousing/about.html">broad proposal</a> with interventions <a href="https://theconversation.com/what-a-difference-a-month-makes-but-victoria-can-still-do-more-to-get-housing-and-planning-right-74233">across the housing continuum</a> (see figure 1). </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/188495/original/file-20171003-3124-hqtdt8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/188495/original/file-20171003-3124-hqtdt8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=355&fit=crop&dpr=1 600w, https://images.theconversation.com/files/188495/original/file-20171003-3124-hqtdt8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=355&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/188495/original/file-20171003-3124-hqtdt8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=355&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/188495/original/file-20171003-3124-hqtdt8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=446&fit=crop&dpr=1 754w, https://images.theconversation.com/files/188495/original/file-20171003-3124-hqtdt8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=446&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/188495/original/file-20171003-3124-hqtdt8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=446&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Figure 1: A housing continuum.</span>
<span class="attribution"><span class="source">Author provided</span></span>
</figcaption>
</figure>
<p>The state with the largest housing affordability problem, New South Wales, released a package of measures <a href="https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/">in June this year</a>. The cornerstone of the plan is a reduction in stamp duty charges for first home buyers and increasing availability of some grants for the same group. </p>
<p>Most economists agree that these measures are likely to put <a href="https://www.domain.com.au/news/prices-will-rise-for-victorian-firsthome-buyers-following-stamp-duty-cut-experts-say-20170630-gx048c/">upward pressure on prices</a> as first home buyers compete in the property market with more dollars. However, politicians seem to like these sort of measures because they are <a href="http://politicsir.cass.anu.edu.au/content/attitudes-housing-affordability">popular with voters</a>. </p>
<p>The NSW plan also focused on increasing housing supply through changes to the planning system and accelerated provision of infrastructure. The headline goal used to measure the results of the package is an increase in the number of <a href="https://www.nsw.gov.au/improving-nsw/premiers-priorities/">dwelling completions to 61,000 per year</a>. </p>
<p>What’s unusual about this target is that there is no indication of the intended price levels of completed dwellings. Left to the market, the supply will not reach those most in need. </p>
<p><a href="https://www.ahuri.edu.au/research/final-reports/281">A recent AHURI study</a> found focusing only on supply as a strategy to reduce housing prices was a blunt instrument. The study reported:</p>
<blockquote>
<p>Most of the growth in housing supply has been taking place in mid-to-high price segments, rather than low price segments. There seems to be structural impediments to the trickle-down of new housing supply. </p>
</blockquote>
<p><a href="https://www.ahuri.edu.au/research/final-reports/281">The same study</a> concluded:</p>
<blockquote>
<p>Targeted government intervention might be needed in order to ensure an adequate supply of affordable housing. </p>
</blockquote>
<h2>How do the states compare?</h2>
<p>Drawing on the new research, Table 1 compares established state and territory schemes designed to deliver affordable housing. </p>
<p>It’s clear some states and territories, by adopting a multi-pronged approach, have been more active and innovative than others. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/188496/original/file-20171003-14213-1hz3j42.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/188496/original/file-20171003-14213-1hz3j42.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/188496/original/file-20171003-14213-1hz3j42.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=218&fit=crop&dpr=1 600w, https://images.theconversation.com/files/188496/original/file-20171003-14213-1hz3j42.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=218&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/188496/original/file-20171003-14213-1hz3j42.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=218&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/188496/original/file-20171003-14213-1hz3j42.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=274&fit=crop&dpr=1 754w, https://images.theconversation.com/files/188496/original/file-20171003-14213-1hz3j42.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=274&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/188496/original/file-20171003-14213-1hz3j42.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=274&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Table 1: Established state-level affordable housing programs (excluding the planning system).</span>
<span class="attribution"><a class="source" href="http://www.ahuri.edu.au/research/final-reports/289">http://www.ahuri.edu.au/research/final-reports/289</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>The research focused on a review of state-level affordable housing delivery. To identify what sort of conditions maximised the chances of success, this included an evaluation of two effective strategies – one in the <a href="http://www.planning.act.gov.au/topics/affordable_housing/affordable_housing_action_plan">Australian Capital Territory</a> and the other in <a href="http://www.openingdoorswa.com.au/">Western Australia</a>. </p>
<p>Both strategies delivered thousands of dwellings for households in need of affordable housing across the continuum. Both have clear targets. </p>
<h2>What are the secrets of success?</h2>
<p>Strong and sustained leadership is critical to both the implementation and ongoing delivery of an affordable housing strategy. Leadership is required both within the organisation responsible for the strategy, ideally a single entity, but also at a political level, ensuring a whole-of-government approach. </p>
<p>Both the ACT and WA strategies had the support of the treasurer during development. This ensured implementation was not hamstrung by a lack of resources. </p>
<p>A strategy needs to be resilient; it should not be easy to roll back following a change of government. It also needs to be developed in close consultation with the private sector and relevant areas of government to ensure all stakeholders are on board. </p>
<p>The organisation implementing the strategy needs to be flexible and innovative. This includes taking advantage of poor housing market conditions to develop joint ventures with the private sector. </p>
<p>When unexpected funding sources arise, state government needs to take advantage by using funding to leverage additional outcomes. </p>
<p>These established strategies offer several lessons for a state government seeking to implement an affordable housing strategy. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/189124/original/file-20171006-25775-1mz5y3s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/189124/original/file-20171006-25775-1mz5y3s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/189124/original/file-20171006-25775-1mz5y3s.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/189124/original/file-20171006-25775-1mz5y3s.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/189124/original/file-20171006-25775-1mz5y3s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/189124/original/file-20171006-25775-1mz5y3s.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/189124/original/file-20171006-25775-1mz5y3s.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The WA government has worked with private sector joint ventures to expand the stock of affordable housing.</span>
<span class="attribution"><span class="source">Richard Wainwright/AAP</span></span>
</figcaption>
</figure>
<h2>Land release is a key factor</h2>
<p>Governments have focused on a broad goal of <a href="https://theconversation.com/solutions-beyond-supply-to-the-housing-affordability-problem-67536">increasing supply</a> as an affordable housing solution, (<a href="https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/">such as the NSW strategy</a>). </p>
<p>In most cases this is a blunt tool because the government cannot directly influence the amount of land or housing stock made available (which are private sector decisions) or the price at which it is released onto the market. </p>
<p>States with an effective government land agency have an advantage. Land release then becomes an important part of an affordable housing strategy.</p>
<p>The ACT has been able to increase land supply and also to target the supply at a particular price point. WA has used its land effectively within private sector joint ventures to secure affordable housing. </p>
<p>Being able to guarantee increased land supply (and not just planning approvals for land development) as well as the price points of that land is a very powerful tool for a government trying to deliver affordable housing.</p>
<h2>An effective affordable housing strategy</h2>
<p>An effective affordable housing strategy is essential to deliver a range of supply options. At present, blockages along the housing continuum prevent households exiting social housing, which would free up supply for households in greater need. </p>
<p>WA in particular has demonstrated a successful strategy. Having reached its target of 20,000 dwellings <a href="http://www.housing.wa.gov.au/News/Pages/20000-affordable-homes-target-met.aspx">five years early</a>, the government committed to a further 10,000 homes <a href="http://www.abc.net.au/news/2015-07-14/more-affordable-housing-to-be-built-in-wa-after-target-met/6618328">by 2020</a>. </p>
<p>Other states in the early stages of strategy implementation could learn much from the multi-pronged approach in the West.</p><img src="https://counter.theconversation.com/content/84508/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Steven Rowley is Director of the Australian Housing and Urban Research Institute's Curtin Research Centre. He receives funding from the Australian Housing and Urban Research Institute and the Bankwest Curtin Economics Centre. He is chair of the Housing Industry Forecasting Group in Western Australia</span></em></p><p class="fine-print"><em><span>Peter Phibbs receives funding from the Australian Housing and Urban Research Institute. He is also the Director of the Henry Halloran Trust at the University of Sydney- a research trust funded through philanthropy. </span></em></p>The states that are delivering more affordable housing have sophisticated, multi-pronged strategies to serve the full range of needs.Steven Rowley, Director, Australian Housing and Urban Research Institute, Curtin Research Centre, Curtin UniversityPeter Phibbs, Chair of Urban Planning and Policy, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/799972017-07-03T20:07:49Z2017-07-03T20:07:49ZCommunity sector offers a solid platform for fair social housing<figure><img src="https://images.theconversation.com/files/175330/original/file-20170623-27895-14cvv6w.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">At the Ashwood-Chadstone estate, Port Phillip Housing Association has built high-quality homes, with no visible difference between the 72 private and 206 community housing dwellings.
</span> <span class="attribution"><span class="source">PPHA</span>, <span class="license">Author provided</span></span></figcaption></figure><p>The Victorian government’s <a href="https://theconversation.com/what-a-difference-a-month-makes-but-victoria-can-still-do-more-to-get-housing-and-planning-right-74233">recently released</a> <a href="http://www.vic.gov.au/system/user_files/Documents/housing/FINAL%20PDF%20DTF046_Q_housing01.pdf">housing strategy</a> allows for the transfer of the state’s public housing stock to the community housing sector. In a <a href="https://theconversation.com/why-should-the-state-wriggle-out-of-providing-public-housing-79581">recent Conversation article</a>, Kate Shaw raises an important question – “Why should the state wriggle out of public housing?” – and condemns the transfer of public housing to private developers for redevelopment. </p>
<p>However, if one is really interested in providing more housing for people on low to moderate incomes, the community sector is the way to go – not public housing.</p>
<p>Criticism of community housing provision – in part because of its role in the UK’s liberal market reforms to public housing – neglects the reality. Community housing has underpinned the growth and viability of what many would see as some of the fairest and best-performing social housing systems in the world — those of <a href="http://au.wiley.com/WileyCDA/WileyTitle/productCd-1118412389.html">Sweden, Denmark</a> and <a href="https://dspace.library.uu.nl/handle/1874/576">the Netherlands</a>.</p>
<p>Management and/or ownership of land (including state land) by not-for-profit community groups ensures affordability in perpetuity. It is not lost to the private sector. And it can provide the same security as public housing, but with more innovative management practices, such as co-operatives and housing trusts. </p>
<h2>Not-for-profits serve a range of needs</h2>
<p>Importantly, in the Australian context, the not-for-profit sector offers a range of housing options pitched at different household needs. These include rental housing for households on low and moderate incomes and affordable home ownership.</p>
<p>One reason for this flexibility is that, unlike government instrumentalities, Australian community sector providers can borrow against their assets. In the appropriate financial environment (as exists in the aforementioned social democratic countries), they can then grow their asset base to meet a broad range of housing needs. </p>
<p>And it does appear we are slowly moving toward such a financial environment. In its budget in May, the federal government <a href="https://theconversation.com/budget-2017-charts-new-social-and-affordable-housing-agenda-76794?sr=3">announced the creation</a> of a <a href="http://www.budget.gov.au/2017-18/content/glossies/factsheets/html/HA_18.htm">National Housing and Finance Corporation</a> (NHFC) to offer community housing agencies access to lower-cost loans. While cheaper loans are not the full financial answer (there is still a substantial yield gap between rents and loan costs), the government has established an expert panel to look at this and report back later this year.</p>
<p>On top of these developments, the recent Productivity Commission <a href="http://www.pc.gov.au/inquiries/current/human-services/reforms/draft">draft report on human services</a>, including social housing, recommends growth of the sector including an increase in Commonwealth rent assistance. This is vital for community housing viability.</p>
<p>International trends aligned with the direction of policy reform in Australia suggest the not-for-profit community sector is the future for social housing growth. And this could be done in a way that addresses Shaw’s other concern — the privatisation of public land. </p>
<p>On this, I agree with her. Losing valuable, well-located land to the private sector creates an enormous opportunity cost; once sold it will never be available for future use. </p>
<p>And all we might get out of it is a 10% increase (a few thousand units) in social housing stock. But merely to keep social housing stock at the current 3.5% of all housing (the lowest in Australia) we need at least an additional 31,000 in Victoria by 2031.</p>
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<h2>Making up for decades of neglect</h2>
<p>We do have to acknowledge that decades of underinvestment in Victoria’s public housing has <a href="https://theconversation.com/states-drag-feet-on-affordable-housing-with-victoria-the-worst-72867?sr=2">left a legacy</a> of housing estates that have gone well beyond repair and maintenance. And, given their low density, these estates are not achieving their potential in terms of either number or quality of dwellings.</p>
<p>In this context, the fact that the state government has set aside $185 million for its <a href="https://dhhs.vic.gov.au/public-housing-renewal-program">Public Housing Renewal Program</a> is to be welcomed.</p>
<p>Some argue that the less-than-ideal result of a public-private partnership <a href="http://www.theage.com.au/victoria/social-mix-approach-to-public-housing-is-failing-research-finds-20170616-gwsj3m.html">renewal of the old Carlton estate</a> demonstrates that mixing public and private housing is problematic.</p>
<p>But what if it was a mix of public and community-managed rental and ownership housing instead? </p>
<p>The community sector can act in the same role as a private developer (with the state not expecting as big a financial reward), renewing the site with a mix of affordable properties for sale. </p>
<p>Unlike conventional private ownership, these would be covenant-protected to ensure, as with equivalent models in the US, that home ownership remains affordable. While privately owned, the properties remain within the affordable housing stock. A community housing association manages their sale and resale.</p>
<p>Also, the rental housing could be a mix of public and community housing. The focus would be on both high-need deep-subsidy households and moderate-income low-subsidy households. Such transformed estates would be genuinely integrated mixed communities, rather than an uneasy balance of high-need public housing at one end and high-end private housing at the other.</p>
<p>Across Australia, many community housing organisations have demonstrated their ability to deliver successful public housing renewal projects with a mix of households and tenure types. They have done so in an integrated and cohesive way, with privately owned units underpinning the financial viability of the projects.</p>
<p>Transfer of stock to the community sector is an important and valuable process of substantial community benefit, both in its own right and as part of a considered process of estate renewal. </p>
<p>Shaw is right. We need much more social housing, and relying on the private sector to drive the process will have an enormous opportunity cost. This will very likely constrain the capacity for future growth and affordability.</p>
<p>But the leaves in the tea cup suggest that the bulk of future growth should be in the not-for-profit sector. The sector can grasp the opportunities offered by policy reform in a way the public sector cannot, and provide sustained affordability and security.</p><img src="https://counter.theconversation.com/content/79997/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Terry Burke receives funding from the Australian Housing and Urban Research Institute (AHURI). He is on the Board of the Community Housing Federation of Victoria.</span></em></p>Concerns about the privatisation of public housing estates should not blind us to the benefits of the transfer of public housing to the not-for-profit community housing sector.Terry Burke, Professor of Housing Studies, Centre for Urban Transitions, Swinburne University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/799072017-06-23T03:53:07Z2017-06-23T03:53:07ZCo-housing works well for older people, once they get past the image problem<p>Housing Australia’s ageing population in homes that are affordable, accessible and sustainable presents a major challenge, particularly in a time of rising housing costs. </p>
<p>Older people want homes where they can feel comfortable and independent, and which allow them to remain connected to their family and friends.</p>
<p>However, many fail to anticipate the health and financial challenges that can diminish their housing choices as they age. With an emphasis on social interaction, environmental sustainability and accessible design, co-housing can provide an attractive housing option for seniors.</p>
<p>We set out to explore the potential of co-housing for seniors, in <a href="https://www.uts.edu.au/research-and-teaching/our-research/institute-sustainable-futures/our-research/social-change-4">newly released research</a> funded by the NSW Department of Family and Community Services and Office of Environment and Heritage. </p>
<h2>How does co-housing work?</h2>
<p>Co-housing is well <a href="https://assets.aarp.org/rgcenter/ppi/liv-com/fs175-cohousing.pdf">established internationally</a> as a housing option but relatively new to Australia. </p>
<p>Co-housing, or co-living, arrangements aim to mix private and shared living spaces in a way that meets the need for both privacy and a sense of community and support. Germany’s <a href="https://theconversation.com/reinventing-density-how-baugruppen-are-pioneering-the-self-made-city-66488"><em>Baugruppen</em> model</a> is a prominent international example. </p>
<p>Despite huge diversity in the size, density and design of co-housing, there are some common characteristics:</p>
<ul>
<li><p>First, the future residents are typically involved in the design process to ensure the final building meets their needs. </p></li>
<li><p>Second, the design includes some mix of private dwellings and shared spaces, and encourages community interaction. Shared spaces can be as minimal as a garden or laundry, or as extensive as a common kitchen, lounge and guest facilities. </p></li>
<li><p>Third, residents are usually actively involved in the governance of the property. </p></li>
</ul>
<h2>What did the research look at?</h2>
<p>Through initial interviews with stakeholders, we identified three different co-housing options that look particularly promising for seniors in Sydney:</p>
<ul>
<li><strong>Deliberative development</strong>, where the building designer actively enables participation by future residents in the design of a multi-unit building that they will eventually live in. Breathe Architecture <a href="https://theconversation.com/nightingales-sustainability-song-falls-on-deaf-ears-as-car-centric-planning-rules-hold-sway-50187?sr=3">pioneered this approach</a> with <a href="http://www.breathe.com.au/the-commons-1/">The Commons</a> in Melbourne, and <a href="http://nightingalehousing.org/">Nightingale Housing</a> is helping the idea to spread. While not aimed specifically at seniors, this model has great potential to deliver co-housing for seniors.</li>
</ul>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=425&fit=crop&dpr=1 754w, https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=425&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=425&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Projects like the Austin Maynard Architects-designed Nightingale 3.0 development on Sydney Road in Melbourne’s Brunswick are changing the image of co-housing.</span>
<span class="attribution"><span class="source">Austin Maynard Architects</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<ul>
<li><p><strong>Co-operative tenancy</strong>, where residents form a housing co-operative to manage their tenancy of a building. <a href="http://www.commonequity.com.au/">Common Equity</a> is the leading proponent of this model in New South Wales, with 39 housing co-operatives established. This model is particularly attractive for private tenants, who are especially vulnerable to financial problems and social isolation.</p></li>
<li><p><strong>Small-scale co-housing</strong>, where an existing single dwelling is renovated to accommodate one to three dwellings. The <a href="https://theconversation.com/how-co-housing-could-make-homes-cheaper-and-greener-39235">Benn family home</a> is a great example. This model is appealing as a way of downsizing, or assisting children with their own housing challenges.</p></li>
</ul>
<h2>Barriers to acceptance</h2>
<p>We tested these three models in focus groups with seniors and found that co-housing has an image problem. The participants were keenly aware of the housing challenges that co-housing seeks to overcome. However, when we started to discuss co-housing, their thoughts immediately turned to hippies, communes and share houses.</p>
<p>This is unfortunate, because there are modern co-housing options that are perfect for the mainstream. These examples feature great design and balance between privacy and community.</p>
<p>We found that awareness of co-housing and its potential benefits was low. In particular, seniors resisted the idea of sharing living spaces.</p>
<p>Some said they had “done their time” and wanted to maintain their independence. They were worried that others would not “do their bit” to maintain the shared spaces. Others liked the idea of increased social interaction but were less enthusiastic about being involved in ongoing governance of the property. </p>
<p>Participants were quick to identify potential barriers to co-housing. These included local planning restrictions, securing finance, or impacts on their pension eligibility.</p>
<p>It is tempting to conclude that co-housing is a nice idea that lacks a market. A common refrain in our focus groups was: “It’s a nice idea, but not for me.” </p>
<p>However, in all these groups we found a small number of participants, perhaps 10-20%, who were enthusiastic about the idea. A market of 10-20% could make a very significant contribution to meeting our housing challenges.</p>
<p>We also discovered many groups that are working hard to establish co-housing, like the <a href="https://www.facebook.com/theAGEncyproj/">AGEncy Project</a> in Balmain. The market could be even larger if co-housing could overcome its image problems.</p>
<h2>How to win converts to co-housing</h2>
<p>We propose the following steps to start realising the potential of co-housing for seniors. </p>
<p>First, more people need to know that co-housing is an option. Raising awareness about co-housing and busting some of the myths about it are high priorities. </p>
<p>Our small contribution is a set of three <a href="http://bit.ly/2sqP7uR">factsheets on co-housing for seniors</a>. More demonstration projects are also badly needed, so people can see what it is actually like to live in co-housing.</p>
<p>Second, more needs to be done to link up the growing number of people who do want to live in co-housing. One of the biggest challenges is finding a group of people who have similar housing needs and aspirations. </p>
<p>Web platforms offer great potential here and some attempts to develop such platforms have already been made. For example, the <a href="https://www.henryproject.com/">Henry Project</a> is working on a Co-Living Network platform.</p>
<p>Third, governments can do to much to support co-housing and overcome existing barriers. For example, governments can provide financial support or access to land for demonstration projects. They can also ensure that planning regulations allow co-housing developments.</p>
<p>Finally, existing seniors’ housing providers can adopt the core ideas of co-housing in their developments. Retirement villages and aged care facilities typically include shared living spaces. Participation in design and governance is perhaps less common.</p>
<hr>
<p><em>For more information about co-housing for older people, read our <a href="https://www.uts.edu.au/research-and-teaching/our-research/institute-sustainable-futures/our-research/social-change-4">research factsheets</a>.</em></p><img src="https://counter.theconversation.com/content/79907/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Chris Riedy receives funding from the NSW Department of Family and Community Services and the NSW Office of Environment and Heritage.</span></em></p><p class="fine-print"><em><span>Kylie McKenna receives funding from the NSW Department of Family and Community Services and the NSW Office of Environment and Heritage.</span></em></p><p class="fine-print"><em><span>Laura Wynne receives funding from the NSW Department of Family and Community Services and the NSW Office of Environment and Heritage. </span></em></p><p class="fine-print"><em><span>Matthew Daly receives funding from the NSW Department of Family and Community Services and the NSW Office of Environment and Heritage.</span></em></p>Older Australians are keenly aware of the housing challenges they face, but most are wary of co-housing due to the negative associations of shared living spaces.Chris Riedy, Associate Professor, University of Technology SydneyKylie McKenna, Research Principal (Business and Sustainability), University of Technology SydneyLaura Wynne, Senior Research Consultant, Institute for Sustainable Futures, University of Technology SydneyMatthew Daly, PhD Researcher at Institute for Sustainable Futures, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/757032017-04-10T20:10:03Z2017-04-10T20:10:03ZAffordable housing, finger-pointing politics and possible policy solutions<p>In the <a href="http://theconversation.com/what-housing-issues-should-the-budget-tackle-this-is-what-our-experts-say-73751">first article</a> reviewing The Conversation’s many articles on housing issues, the commentary about fiscal and supply-side issues was consistent. The same is not true for affordable housing due to the diversity of affordability issues.</p>
<p>The issues have to do with the complexity and scale of the affordability problems and possible policies discussed in Conversation articles since January 2016. As it is not possible for one article to cover all the relevant policies, the focus here is on the <a href="https://www.dss.gov.au/housing-support/programmes-services/national-affordable-housing-agreement">National Affordable Housing Agreement</a> (NAHA), support for <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">not-for-profit social housing</a>, <a href="https://theconversation.com/sensible-reform-to-finance-affordable-housing-deserves-cross-party-support-72059">bond aggregation</a> and <a href="https://theconversation.com/sydney-needs-higher-affordable-housing-targets-69207">inclusionary zoning</a>.</p>
<p>The terms affordable and social housing are sometimes used interchangeably, a potential cause of confusion. Affordable housing is more encompassing – it represents an aspiration for all who cannot enter the market for housing. This includes both ownership and rental.</p>
<p>Social housing is one form of affordable housing. It includes public housing and housing owned and managed by not-for-profit community housing providers. As well as providing housing for those unable to enter the market, community housing providers accommodate, for example, <a href="https://theconversation.com/the-forgotten-660-000-locked-out-of-home-ownership-74926">people with disabilities</a> and those escaping domestic violence.</p>
<h2>A ‘hot’ political issue</h2>
<p>Affordable housing is a “hot” issue. Recently, the new premier of New South Wales, Gladys Berejiklian, listed it as <a href="https://theconversation.com/if-youre-serious-about-affordable-sydney-housing-premier-heres-a-must-do-list-71791">one of her top three priorities</a>.</p>
<p>Federal Treasurer Scott Morrison claims supply-side constraints are pushing up housing prices. He <a href="https://theconversation.com/morrison-targets-state-planning-regulations-as-problem-for-housing-affordability-67524">targets state planning regulations</a> as the problem.</p>
<p>Federal politicians favour this explanation as supply-side complaints can be used to blame state and local governments. This serves to divert attention from federal fiscal policies, which effectively subsidise home ownership.</p>
<h2>How big is the problem?</h2>
<p>Of the need for public and social housing, authors wrote:</p>
<blockquote>
<p>We have modelled the income rules determining eligibility for public housing, and estimate that there are <a href="https://theconversation.com/can-the-private-rental-sector-provide-a-secure-affordable-housing-solution-63880">900,000 households satisfying these income eligibility criteria</a>.</p>
<p>… state-owned-and-managed housing still accommodates around <a href="https://theconversation.com/productivity-commission-stance-has-potential-for-social-housing-gains-66038">700,000 of our most vulnerable citizens</a>.</p>
<p>… there are as many as <a href="https://theconversation.com/how-policy-success-not-failure-has-driven-australias-housing-crisis-53751">105,000 people who are without a home</a> and 160,000 households on public housing waiting lists. The overall stock of public housing has fallen from 331,000 units in 2007-08 to 317,000 in 2013-14.</p>
<p>Social housing has <a href="https://theconversation.com/the-forgotten-660-000-locked-out-of-home-ownership-74926">nearly 200,000 Australians on a waiting list</a>.</p>
</blockquote>
<p>In addition to the public housing stock, not-for-profits <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">provide about 100,000 social housing dwellings</a>.</p>
<p>The scale of the affordable housing problem is highly dependent on mortgage stress. This, in turn, is linked most closely to household incomes and employment levels. This mortgage stress is <a href="https://theconversation.com/not-on-struggle-street-yet-but-mortgage-stress-risk-is-rising-64293">not especially concentrated in the capital cities</a>. </p>
<p>Into this affordability mix one might also add some 2 million Australians who “<a href="https://theconversation.com/two-million-aussies-are-experiencing-high-financial-stress-64367">don’t have the resources to bounce back</a>” from unexpected bills.</p>
<h2>Ways to improve social housing supply</h2>
<p>The NAHA, which has been referred to as Australia’s housing policy, is a “national partnership agreement” by the Council of Australian Governments (COAG). Its largest component is social housing. </p>
<p>Federal government ministers have described the A$1.3 billion-a-year NAHA as an “<a href="https://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0ahUKEwiCvLrcgI_TAhVqqFQKHcztBGMQFgglMAI&url=http%3A%2F%2Fwww.theaustralian.com.au%2Fnational-affairs%2F9bn-home-affordability-scheme-to-be-dumped-in-may-budget%2Fnews-story%2F9765e3a8c7cbdca45a090464aff1c82e&usg=AFQjCNFwB0HuZgOjS0wcVn2K64HEOh7HTQ&bvm=bv.151426398,d.dGchttps://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">abject failure</a>”. This is because it has not increased “the number and availability of public and social housing stock”.</p>
<p>In contrast, The Conversation authors agree that spending on public housing is inadequate and declining.</p>
<blockquote>
<p>Australia’s social housing system <a href="https://theconversation.com/productivity-commission-stance-has-potential-for-social-housing-gains-66038">remains grossly underfunded</a>. Currently available resources are inadequate even to properly maintain the existing portfolio, let alone to underpin the new supply needed to keep pace with the growing need.</p>
<p>… the <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">overall stock has been eaten away</a>, through market sale of public housing, and run down, through skimping on repairs and maintenance.</p>
</blockquote>
<p>The history of public housing is that housing was briefly referred to as a “right” after the second world war. Public housing was used to accommodate people from various classes; it was not initially a preserve of the poor. Later, that changed:</p>
<blockquote>
<p>[Public] housing’s declining share of the housing stock became more tightly <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">rationed to the lowest-income households</a>. This eroded the system’s rent base. At the same time, its ageing buildings and households with greater support needs increased its costs.</p>
</blockquote>
<p>When operating expenses are not covered, maintenance is inadequate. When that happens, the number of habitable units declines.</p>
<p>It is feared that the NAHA <a href="http://www.news.com.au/national/politics/turnbull-government-to-axe-national-affordable-housing-scheme/news-story/6bdb60c21d24dbf188c18fea3701237f">might not survive the 2017 budget</a>. Likewise <a href="https://theconversation.com/productivity-commission-stance-has-potential-for-social-housing-gains-66038">it is feared that</a>:</p>
<blockquote>
<p>… [Productivity] commission-inspired “reforms” could involve the forced sale of public housing to vulture capitalists unconstrained by enforceable obligations to provide tenant services or to maintain, upgrade and retain housing stock for its current purpose.</p>
<p>… some residents face eviction through large-scale public housing redevelopment by governments that <a href="https://theconversation.com/explainer-the-financialisation-of-housing-and-what-can-be-done-about-it-73767">view their homes as key real estate assets</a>.</p>
</blockquote>
<p>The fear of eviction from public housing sites with high land value is certainly warranted:</p>
<blockquote>
<p>In March 2014, New South Wales government minister Pru Goward announced that all of the 293 public housing dwellings in Millers Point, Dawes Point and The Rocks, as well as the 79 apartments in the Sirius Building built for public housing in the 1970s, <a href="https://theconversation.com/why-moving-out-public-housing-tenants-is-a-tragedy-for-millers-point-and-for-sydney-64363">were to be sold</a>. Their tenants would be moved.</p>
</blockquote>
<p>One of the potential bipartisan ways forward is to scale up social housing provided by not-for-profits. As federal housing minister, <a href="http://www.formerministers.dss.gov.au/1800/social_housing_19mar09/">Tanya Plibersek proposed</a> in 2009 that:</p>
<blockquote>
<p>… not-for-profit community housing providers would be <a href="https://theconversation.com/productivity-commission-stance-has-potential-for-social-housing-gains-66038">supported to grow to a scale</a> enabling them both to complement and compete with public housing entities.</p>
</blockquote>
<p>Social housing critically serves low-income renters. The high cost and limited availability of rental housing is a defining feature of the affordability problem. It also underscores the inequality between owners and renters due to the fiscal policy benefits for home owners.</p>
<p>Funding is needed to scale not-for-profit social housing. In a context of seeking to cut public spending, Morrison is looking to private sector funding of the sector to increase both the supply of affordable housing and the transfer of public housing to not-for-profits.</p>
<p>He is seeking to secure such funding based on a bond aggregator model. This is <a href="http://www.ahuri.edu.au/policy/ahuri-briefs/bond-aggregator-model">best explained</a> by the Australian Housing and Urban Research Institute (AHURI). It has proposed: </p>
<blockquote>
<p>… an Affordable Housing Finance Corporation … designed to aggregate and source large amounts of capital from the bond market so as to provide lower-interest, long-term loans to not-for-profit community housing providers developing housing for lower-income households. The intention is that money would be raised efficiently with reduced financing costs rather than in expensive one-off transactions such as when borrowing from a bank.</p>
</blockquote>
<p>AHURI cautions that the not-for-profit need for rental income means that households whose only income is welfare assistance cannot access not-for-profit social housing. The need for rental assistance remains.</p>
<p>Another means advocated for increasing the supply of affordable housing is inclusionary zoning. This approach requires a percentage of new housing projects on rezoned and government land to be affordable housing. An additional benefit is that this improves <a href="https://theconversation.com/if-the-people-cant-get-to-their-jobs-bring-the-jobs-to-the-people-57567">access to jobs</a> for <a href="https://theconversation.com/high-housing-costs-create-worries-for-city-tourism-and-hospitality-57347">low-paid service workers</a>. </p>
<p>Inclusionary zoning has long been practised in Europe, the US and, more recently, in <a href="https://renewalsa.sa.gov.au/building-our-future/affordable-housing/">South Australia</a>. The <a href="https://theconversation.com/sydney-needs-higher-affordable-housing-targets-69207">rationale for inclusionary zoning</a> is:</p>
<blockquote>
<p>… that the uplift in land value results from public policy changes that allow for housing development or higher-density housing. It is not unreasonable, then, that landowner windfalls should be limited to achieve the important public policy outcome of housing affordability.</p>
</blockquote>
<p>The Property Council opposes inclusionary zoning, claiming that it will increase the cost of housing for others. This is doubtful, for the following reason:</p>
<blockquote>
<p>If a fixed percentage of affordable housing becomes a condition of rezoning … this will only affect the size of the landholder’s windfall gain. Developers will offer lower prices for the land, based on the mandated requirements for affordable housing.</p>
</blockquote>
<p>The Greater Sydney Commission supports inclusionary zoning, which is sorely lacking in Melbourne. <a href="http://www.sgsep.com.au/assets/Occasional-Paper-Revisiting-the-economics-of-Inclusionary-Zoning-April-2015.pdf">In Sydney</a>, the debate concerns the percentage of dwellings allocated to affordable housing. The commission suggests <a href="https://www.greater.sydney/digital-district-plan/603">figures of 5%-10%</a>, whereas The Conversation authors advocate:</p>
<blockquote>
<p>… at least 15% of housing in new private developments … [and] on publicly owned land, at least 30% of new housing developments should be affordable. </p>
</blockquote>
<h2>Fresh approaches and funding needed</h2>
<p>If NAHA funding is reduced, or the NAHA is terminated, the affordable housing problem will sharply escalate. Australia’s “housing crisis” will truly deserve that label. </p>
<p>It can be anticipated that social housing provided by not-for-profits can scale, but this will take many years. Government rental assistance will still be needed. Inclusionary zoning is desirable and can serve low-income households, but will never be an alternative to the need for social housing. </p>
<p>The question is what policy alternatives Morrison has in mind and how much he is prepared to spend.</p><img src="https://counter.theconversation.com/content/75703/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Richard Tomlinson does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In the second part of our review of what The Conversation experts have to say about housing, we focus on affordability, social housing and what government can do about a growing crisis.Richard Tomlinson, Professor of Urban Planning, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/735142017-03-07T01:30:42Z2017-03-07T01:30:42ZAustralia’s almost a world leader in home building, so that isn’t a fix for affordability<p>Politicians and the powerful property lobby continue to argue that building more houses is the solution to Australia’s chronic affordability problems. </p>
<p>But a “supply-side solution” – as propounded by NSW Premier <a href="http://www.abc.net.au/radionational/programs/breakfast/nsw-premier-gladys-berejiklian-on-housing-affordability/8210282">Gladys Berejiklian</a> as well as Prime Minister <a href="https://thewest.com.au/politics/housing-relief-centres-on-supply-morrison-ng-s-1687392">Malcolm Turnbull</a> and <a href="http://sjm.ministers.treasury.gov.au/speech/020-2016/">Treasurer Scott Morrison</a> – will only work if affordability is just a supply-side problem. Evidence suggests this is not the case. In fact, our analysis shows that Australia is almost a world leader in rates of new housing production. </p>
<h2>How Australia compares</h2>
<p>One way to assess Australia’s supply performance is to compare it with other developed countries. The graph below compares the number of dwelling completions per 1,000 persons across 13 countries, for the years 2010 and 2015. On this measure, Australia’s new housing production is second only to South Korea’s. </p>
<p>Australia delivers two-thirds more homes per 1,000 persons than the US and four times more than the UK. When we measure supply as a proportion of existing stock, Australia again ranks second with a rate double that of the US. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/160101/original/image-20170309-21034-13tvfqq.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/160101/original/image-20170309-21034-13tvfqq.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/160101/original/image-20170309-21034-13tvfqq.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=297&fit=crop&dpr=1 600w, https://images.theconversation.com/files/160101/original/image-20170309-21034-13tvfqq.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=297&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/160101/original/image-20170309-21034-13tvfqq.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=297&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/160101/original/image-20170309-21034-13tvfqq.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=373&fit=crop&dpr=1 754w, https://images.theconversation.com/files/160101/original/image-20170309-21034-13tvfqq.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=373&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/160101/original/image-20170309-21034-13tvfqq.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=373&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">OECD questionnaire on affordable and social housing; World Bank population growth and total population figures</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>A slightly different approach takes into account population growth. This involves measuring dwelling completions per head of new population. Here Australia’s performance sits in the middle of the pack. </p>
<p>We are delivering just over 0.5 dwellings per head of new population compared to more than 2 in South Korea. This rate is, however, still ahead of the UK and comparable to the US. Again, that suggests inadequate supply is not the major cause of the affordability crisis.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/160102/original/image-20170309-21034-1ln5u1y.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/160102/original/image-20170309-21034-1ln5u1y.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/160102/original/image-20170309-21034-1ln5u1y.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=337&fit=crop&dpr=1 600w, https://images.theconversation.com/files/160102/original/image-20170309-21034-1ln5u1y.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=337&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/160102/original/image-20170309-21034-1ln5u1y.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=337&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/160102/original/image-20170309-21034-1ln5u1y.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/160102/original/image-20170309-21034-1ln5u1y.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/160102/original/image-20170309-21034-1ln5u1y.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">OECD questionnaire on affordable and social housing, World Bank population growth and total population figures</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<h2>State comparisons of supply</h2>
<p>At a national level, supply seems pretty healthy. But there are significant state variations. This might, on the surface, be used to explain different patterns of price growth.</p>
<p>The table below shows that New South Wales has produced fewer new homes per 1,000 people than Australia overall over a 30-year period. The difference was particularly marked between 2005 and 2015. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/160103/original/image-20170309-21056-16lsugr.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/160103/original/image-20170309-21056-16lsugr.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/160103/original/image-20170309-21056-16lsugr.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=83&fit=crop&dpr=1 600w, https://images.theconversation.com/files/160103/original/image-20170309-21056-16lsugr.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=83&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/160103/original/image-20170309-21056-16lsugr.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=83&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/160103/original/image-20170309-21056-16lsugr.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=105&fit=crop&dpr=1 754w, https://images.theconversation.com/files/160103/original/image-20170309-21056-16lsugr.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=105&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/160103/original/image-20170309-21056-16lsugr.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=105&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">State comparisons of new housing supply.</span>
<span class="attribution"><span class="source">ABS building activity Australia cat. 8152; ABS Australian Demographic statistics Cat 3101</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>However, higher supply output in the other states has certainly not created affordable markets. In NSW, the last two years have delivered significant supply growth yet <a href="https://theconversation.com/if-youre-serious-about-affordable-sydney-housing-premier-heres-a-must-do-list-71791">prices have continued to rise</a> just as fast. So why do prices rise with supply growth? </p>
<h2>Demand drives supply</h2>
<p>In a market-driven housing system, price stimulates new housing supply. In Australia new supply has responded relatively quickly to price rises (despite the continuous rhetoric from the property lobby about planning). </p>
<p>But there is always some lag due to the time it takes to secure necessary approvals and physically construct property. There is no such lag with demand meaning there is often a sustained mismatch between the two – positive or negative. </p>
<p>In a rising market, development becomes more profitable and land values rise, meaning greater returns for all concerned. Potential future capital gains stimulate investment activity. Price rises also allow owner-occupiers to trade up as the equity in their own dwelling increases. </p>
<p>In such circumstances, increased levels of housing supply do little to satiate demand created by population growth and the appetite of investors. </p>
<p>Western Australia has had an incredible level of housing completions over the last 30 years, as shown in the table, with <a href="https://www.planning.wa.gov.au/716.aspx">2014 and 2015 particularly strong</a>. In the last 12 months, dwelling commencements have collapsed by more than 25%. Prices have been falling slowly for almost three years driven by the contraction in the resources sector and strong levels of new supply.</p>
<p>However, even under these conditions, WA housing affordability shows little sign of improving for those on <a href="http://www.housing.wa.gov.au/HousingDocuments/Housing_Affordability_Report_Perth_Metro_Area_2016.pdf">low incomes</a>. The market still cannot deliver housing for those at the <a href="http://bcec.edu.au/publications/keeping-roof-heads/">bottom end of the market</a>.</p>
<p>The housing market is simply unable to deliver housing that is affordable to those on lower (and, increasingly, moderate) incomes because there is a minimum cost of delivering housing that meets minimum community standards. This is made up of the land price, the physical construction costs of the dwelling, and the profit required for taking on the development risk.</p>
<p>This is why market intervention and subsidy are essential to deliver options for those on low incomes.</p>
<h2>Targeted interventions are needed</h2>
<p>Two strategies are needed to deliver affordable housing to the lower end of the market.</p>
<p>First, demand-side measures need to be better targeted to stimulate investment in new supply, particularly affordable rental housing, rather than simply fuelling demand.</p>
<p>Second, any government serious about improving affordability needs to put more resources <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">into the community housing sector</a>. This could be funded in two ways: partly by taxing the windfall gains from development and partly by reallocating existing demand-side subsidies. </p>
<p>The community housing sector can operate counter-cyclically. This means it can maintain housing supply even when house prices stagnate or fall – which is good for the economy.</p>
<p>A bigger community housing sector is the supply solution Australia really needs. The <a href="http://www.ahuri.edu.au/evidence-in-action/news/2016-news/bond-aggregator-model-adopted">bond aggregator model</a> currently <a href="https://theconversation.com/sensible-reform-to-finance-affordable-housing-deserves-cross-party-support-72059">working its way through consultation</a> offers some hope of delivering this expansion.</p>
<p>Targeting supply to deliver housing for those on low incomes and reining in <a href="https://theconversation.com/negative-gearing-changes-wont-drive-all-investors-from-the-housing-market-heres-why-55505">demand-side incentives</a> that fuel prices will make some difference to affordability for those most affected. </p>
<p>There was some encouragement over the weekend. <a href="http://www.watoday.com.au/federal-politics/political-news/federal-budget-to-include-housing-package-treasurer-scott-morrison-20170304-guqwtp.html">Scott Morrison discussed</a> the rental market and social housing as part of the affordability solution. This was a welcome change from trotting out the <a href="https://theconversation.com/why-housing-supply-shouldnt-be-the-only-policy-tool-politicians-cling-to-72586">tired old supply arguments</a> and threatening to fuel demand through more home ownership incentives. </p>
<p>Let’s hope the treasurer follows through and delivers some much-needed “whole of housing market” thinking in the May budget.</p><img src="https://counter.theconversation.com/content/73514/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Steven Rowley is Director of the Australian Housing and Urban Research Institute's Curtin Research Centre. He receives funding from the Australian Housing and Urban Research Institute and the Bankwest Curtin Economics Centre. He is chair of the Housing Industry Forecasting Group in Western Australia </span></em></p><p class="fine-print"><em><span>Nicole Gurran receives funding from the Australian Housing & Urban Research Institute (AHURI) and has received funding from the Australian Research Council. </span></em></p><p class="fine-print"><em><span>Peter Phibbs receives funding from AHURI. </span></em></p>The housing supply solution our leaders are advocating will only work if affordability is simply a problem of supply. In fact, Australia is almost a world leader in rates of new housing production.Steven Rowley, Director, Australian Housing and Urban Research Institute, Curtin Research Centre, Curtin UniversityNicole Gurran, Professor - Urban and Regional Planning, University of SydneyPeter Phibbs, Chair of Urban Planning and Policy, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/728612017-02-19T19:11:33Z2017-02-19T19:11:33ZAustralia needs to reboot affordable housing funding, not scrap it<figure><img src="https://images.theconversation.com/files/156896/original/image-20170215-19613-18k8jpb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">New South Wales is the state that has suffered the biggest fall in available public housing stock since 2009. This has led to protests.</span> <span class="attribution"><span class="source">Teresa Parker/AAP</span></span></figcaption></figure><p>Federal government ministers have <a href="https://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwijkc79h4TSAhXIHJQKHcRkBDMQFggZMAA&url=http%3A%2F%2Fwww.theaustralian.com.au%2Fnational-affairs%2F9bn-home-affordability-scheme-to-be-dumped-in-may-budget%2Fnews-story%2F9765e3a8c7cbdca45a090464aff1c82e&usg=AFQjCNFwB0HuZgOjS0wcVn2K64HEOh7HTQ&bvm=bv.146496531,d.dGo">cast a cloud</a> over funding for social housing and homelessness services, leading to speculation that the National Affordable Housing Agreement (NAHA) may not survive the 2017 budget.</p>
<p>Treasurer Scott Morrison and Assistant Treasurer Michael Sukkar point to the recent <a href="http://www.pc.gov.au/research/ongoing/report-on-government-services/2017/housing-and-homelessness">Report on Government Services</a>, which shows the number of public housing properties has fallen, as evidence of the NAHA’s “abject failure”. Sukkar said:</p>
<blockquote>
<p>We believe it’s crucial that every dollar of spending on affordable housing programs increases the number and availability of public and social housing stock. Clearly, this objective has not been met.</p>
</blockquote>
<p>It should be no surprise that Australia’s social housing has been largely static for 20 years. Everything we know about the system tells us it is not funded to even cover the costs of its ongoing operation, let alone growth to meet the needs of an expanding population. Aside from a one-off boost under the 2009 federal economic stimulus plan, social housing has been on a starvation ration for decades. </p>
<p>The whole system system is effectively being run at a loss. So, from the perspective of state governments, building a new public housing dwelling is just one more way of losing money.</p>
<p>The federal government has also long lamented the lack of transparency about how states and territories spend their NAHA funds – about AS$1.5 billion a year. And there are glaring gaps in the evidence about the operations and performance of public housing authorities. </p>
<p>In failing to act on <a href="http://www.dhs.vic.gov.au/__data/assets/pdf_file/0009/564381/Implementing-national-housing-reforms.pdf">a 2009 commitment</a> to modernise and enhance the Report on Government Services metrics, the states and territories have placed themselves in a weak position to rebut claims of ineffective financial management. </p>
<p>That said, everyone who has any contact with the public housing system knows it to be grossly underfunded. One-off studies occasionally illuminate the scale of the issue. For example, a <a href="http://www.audit.nsw.gov.au/publications/performance-audit-reports/2013-reports/making-the-best-use-of-public-housing">2013 New South Wales Audit Office report</a> found a $600 million annual operating deficit for that state’s public housing. But no-one can easily quantify the extent of the problem using routinely published data.</p>
<h2>A snapshot of social housing in Australia</h2>
<p>Around 320,000 of Australia’s approximately 428,000 social housing dwellings remain under public housing authority control. This stock was amassed through a long series of funding agreements between federal and state and territory governments. These were known as the Commonwealth-State Housing Agreements until their 2009 NAHA rebranding. </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/156911/original/image-20170215-19598-1unf2ri.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/156911/original/image-20170215-19598-1unf2ri.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/156911/original/image-20170215-19598-1unf2ri.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=748&fit=crop&dpr=1 600w, https://images.theconversation.com/files/156911/original/image-20170215-19598-1unf2ri.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=748&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/156911/original/image-20170215-19598-1unf2ri.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=748&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/156911/original/image-20170215-19598-1unf2ri.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=940&fit=crop&dpr=1 754w, https://images.theconversation.com/files/156911/original/image-20170215-19598-1unf2ri.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=940&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/156911/original/image-20170215-19598-1unf2ri.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=940&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Australia has had federal-state housing agreements since the Labor government of Ben Chifley initiated the first one in 1945.</span>
<span class="attribution"><span class="source">AAP</span></span>
</figcaption>
</figure>
<p>From the <a href="http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/Publications_Archive/archive/StateHouseAgree">first Commonwealth-State Housing Agreement in 1945</a>, the basic arrangement was that the federal government would lend funds to state housing authorities to build houses. The states would cover the ongoing costs from the rents paid by working-class tenants.</p>
<p>And, at least to begin with, the housing authorities did build. They made a significant contribution to housing supply, amounting to roughly one in six houses built between 1945 and 1965.</p>
<p>From the early 1970s, the housing authorities were directed, justifiably, to provide more housing to low-income households unable to pay full “market” rents. However, their capital funding also went into a long decline. With the exception of a brief period in the mid-1980s, housing authorities never again built at their earlier rate. </p>
<p>A number of interlocking problems set in. Social housing’s declining share of the housing stock became more tightly rationed to the lowest-income households. This eroded the system’s rent base. At the same time, its ageing buildings and households with greater support needs increased its costs.</p>
<p>Two <a href="http://www.ahuri.edu.au/research/final-reports/55">landmark</a> <a href="http://www.ahuri.edu.au/research/final-reports/106">studies</a> by Jon Hall and Mike Berry charted the implications of these developments for the finances. At the end of the 1980s, all but one of the housing authorities ran an operating surplus. By 2004, all but one ran an operating deficit. </p>
<p>Various attempts to improve the situation have been made. The 1989 Commonwealth-State Housing Agreement switched federal funding from loans to grants; the 1996 agreement allowed federal funds to be spent on recurrent expenses. In the early 2000s, rebates on social housing rents were reduced, slightly increasing revenue. </p>
<p>Modest amounts of public housing have also been transferred into the hands of <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0010/10711/AHURI_Final_Report_No273_Recent-housing-transfer-experience-in-Australia-implications-for-affordable-housing-industry-development.pdf">not-for-profit community housing providers</a>. Partly, this is to take advantage of the eligibility of community housing tenants for Commonwealth Rent Assistance. But although this often enables these providers to run a small operational surplus, it isn’t enough to fund stock replacement or any significant expansion.</p>
<p>Meanwhile, the overall stock has been eaten away, through market sales of public housing, and run down, through skimping on repairs and maintenance. Both are unsustainable strategies. </p>
<h2>Running a system without good data</h2>
<p>If the broad outlines of the problem are clear, there are major deficiencies in the data as to the details. The Hall and Berry analysis is now dated. There is no current evidence base that shows transparently and consistently what the social housing system in each state and territory costs, and how these costs are met.</p>
<p>For example, the Report on Government Services purports to show the “net recurrent cost per dwelling” for each state and territory. But this does not differentiate between distinct expenditure components such as management and maintenance.</p>
<p><a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0018/5760/AHURI_Final_Report_No257_Assessing_management_costs_and_tenant_outcomes_in_social_housing_recommended_methods_and_future_directions.pdf">Our 2015 research</a> found that this metric was a “black box”, subject to implausibly large variations across jurisdictions. These reflected the vagaries of departmental restructures, rather than a sound accounting of social housing operations. </p>
<p>There is little doubt that all public housing authorities are now in deficit. However, the Report on Government Services provides no data on the relative scale of these funding shortfalls. Nor do governments routinely reveal the scale of system costs still met by tenants’ rents, nor through stock sales.</p>
<h2>What should a rebooted NAHA do?</h2>
<p>Although the NAHA does it inadequately, an enduring program of federal funding for operational expenses is essential to sustain the social housing system. Such funding cannot be “replaced”, as Morrison has suggested, by a government-backed aggregated bond financing model. </p>
<p>The <a href="https://theconversation.com/sensible-reform-to-finance-affordable-housing-deserves-cross-party-support-72059">bond aggregator model</a> depends on social housing providers having a durable subsidy from government that pays the difference between their ongoing costs and the revenue from rent that low-income tenants can afford.</p>
<p>Instead, NAHA should be rebooted to deliver three things:</p>
<ul>
<li><p>capital funding for new social housing stock, distributed according to an assessment of current and projected needs in each state and territory;</p></li>
<li><p>recurrent funding, distributed according to the number of social housing dwellings in each state and territory and an assessment of reasonable net recurrent costs; and</p></li>
<li><p>clear accounting by social housing providers for costs of provision and the contributions of tenants, government funding and other sources of income towards meeting these costs.</p></li>
</ul>
<p>Many in the social housing world would agree the NAHA framework is far from transparent and that there is no certainty that NAHA money is optimally spent. But a ministerial focus on these issues while ignoring the system’s chronic underfunding smacks of re-arranging deckchairs. </p>
<p>Rather than scrapping the NAHA, the system should be rebooted, to properly fund both the growth and ongoing operations of social housing. This must be done on the basis of clear targets for the level of need to be met and the reasonable costs of providing the service.</p><img src="https://counter.theconversation.com/content/72861/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Chris Martin receives funding from AHURI. </span></em></p><p class="fine-print"><em><span>Hal Pawson receives funding from the Australian Housing and Urban Research Institute, the Australian Research Council and Launch Housing
</span></em></p>Although the federal-state agreement does it inadequately and lacks transparency, an enduring program of federal funding for operational expenses is essential to sustain the social housing system.Chris Martin, Research Fellow, City Housing, UNSW SydneyHal Pawson, Associate Director - City Futures - Urban Policy and Strategy, City Futures Research Centre, Housing Policy and Practice, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/660382016-09-26T23:33:58Z2016-09-26T23:33:58ZProductivity Commission stance has potential for social housing gains<p>The <a href="http://www.pc.gov.au/inquiries/current/human-services/identifying-reform/preliminary-findings/human-services-identifying-reform-preliminary-findings.pdf">Productivity Commission report</a> favouring “greater competition, contestability and user choice” in social housing has caused <a href="http://nsw.greens.org.au/news/nsw/productivity-comm-report-backs-loser-promoting-social-housing-privatisation">concern among advocates for low-income tenants</a>. The report is an interim output from an ongoing review of the nation’s human services – including public hospitals, dental services and palliative care, as well as state-provided or regulated housing. The commission’s “pro-competition” statement, although a provisional finding, could presage a shake-up in the delivery of housing services for Australia’s most disadvantaged groups.</p>
<p>Critics have characterised the report as a charter for <a href="http://nsw.greens.org.au/news/nsw/productivity-comm-report-backs-loser-promoting-social-housing-privatisation">“privatisation”</a> of public housing. While somewhat diminished, state-owned-and-managed housing still accommodates around 700,000 of our most vulnerable citizens. </p>
<p>This explains the fears that commission-inspired “reforms” could involve the forced sale of public housing to vulture capitalists unconstrained by enforceable obligations to provide tenant services or to maintain, upgrade and retain housing stock for its current purpose. We need only look to Germany – so often referenced as a private-renter-friendly country – for an example of how <a href="http://www.ahuri.edu.au/__data/assets/pdf_file/0021/8418/AHURI_Final_Report_No264_Transforming-public-housing-in-a-federal-context.pdf?utm_source=website&utm_medium=report.PDF&utm_campaign=http://www.ahuri.edu.au/research/final-reports/264">a botched divestment of social housing</a> to for-profit companies can lead to public authorities being forced to buy back stock.</p>
<p>However, rather than pushing towards an entirely marketised and deregulated framework underpinned by the profit motive, the commission report’s soberly couched analysis appears focused on how to make the existing social housing system work more efficiently and effectively to deliver established obligations. </p>
<p>The authors, for example, contend that: </p>
<blockquote>
<p>… there appears scope for improvement in the way social housing is delivered that could lead to better outcomes for tenants in the social housing system, as well as for people outside the system who are unable to access the support they need.</p>
</blockquote>
<p>They rightly note that all is far from well with the status quo:</p>
<blockquote>
<p>Due to … funding pressures and demographic changes, the quality of the service received by social housing tenants has deteriorated … Additional maintenance expenditure as part of the Australian Government’s 2008 stimulus package has not alleviated deteriorating quality standards in public housing.</p>
</blockquote>
<h2>Towards a multi-provider system</h2>
<p>The policy aspiration for a “contestable” social housing system has, in fact, been a mainstream orthodoxy for quite a while. </p>
<p>Indeed, it formed the centrepiece of Tanya Plibersek’s groundbreaking 2009 speech, <a href="http://www.homeground.org.au/publication/room-for-more-boosting-providers-of-social-housing">Room for More</a>. As Labor’s federal housing minister, she argued for a move away from the domination of social housing by large “monopolistic” state authorities and towards a “multi-provider” system. Under this vision, not-for-profit community housing providers would be supported to grow to a scale enabling them to both complement and compete with public housing entities.</p>
<p>Post-2009 developments have included some expansion of community housing. Part of this has been through the <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0015/2256/AHURI_Final_Report_No215_Public-housing-transfers-past,-present-and-prospective.pdf?utm_source=website&utm_medium=report.PDF&utm_campaign=https://www.ahuri.edu.au/research/final-reports/215">transfer of tenanted public housing properties</a>. </p>
<p>Even so, community providers control only around a fifth of all social housing in 2016. They remain very much minority players in most states. </p>
<p>The Productivity Commission’s enthusiasm for greater contestability might result in a recommendation that state governments should consider further large-scale public housing transfers to community providers. Some contend that this amounts to <a href="http://savepublichousing.blogspot.com.au/2016/08/5000-homes-saved-from-privatisation.html">damaging privatisation</a> no less than if the recipients were for-profit companies. </p>
<p>In my view, this argument is <a href="http://blogs.unsw.edu.au/cityfutures/blog/2016/07/ditching-logans-public-private-regeneration-sets-queensland-back-on-social-and-affordable-housing/">highly questionable</a>. Instead, community housing providers might legitimately position themselves as “the reform alternative to privatisation”.</p>
<p>In principle, greater competition, contestability and choice could be fostered within social housing in other ways. While observing that “allowing community housing providers to manage social housing appears to have had benefits, both in Australia and elsewhere”, the commission also notes:</p>
<blockquote>
<p>For-profit providers could introduce further contestability and choice. </p>
</blockquote>
<p>In the absence of a new public subsidy, though, it’s debatable whether many companies needing to deliver shareholder returns would see the firmly regulated management of public housing as an attractive proposition. </p>
<p>Mid-1990s attempts by Queensland’s Borbidge government to outsource public housing to for-profit companies soon fell by the wayside. Similarly unsuccessful in the mid-1990s was the UK government’s effort to outsource the entire council housing service, under <a href="http://www.jstor.org/stable/41107803?seq=1#page_scan_tab_contents">Housing Management Compulsory Competitive Tendering</a>. Again, the inherently low returns from providing minimally subsidised services to poor people – as well as the complexity of social housing management – meant the UK program failed to attract the expected interest of for-profit companies.</p>
<p>A close reading of the commission’s report suggests anyway that the authors are at this stage more inclined towards diversifying social housing through boosting its community housing component than through a predominant role for private for-profit entities:</p>
<blockquote>
<p>Transferring the management of more properties to non-government providers could deliver more options for tenants who are offered a choice of housing provider.</p>
</blockquote>
<p>Such a direction would, nevertheless, “not preclude the management of properties remaining with the public provider, if they were best-placed to provide the service”.</p>
<h2>Obstacles to accountability</h2>
<p>However, any reforms based on deciding which provider is “best-placed to provide the service” face a serious obstacle: the available data on the cost of social housing provision and service outcomes are woefully inadequate. This is true at the aggregate level and for individual social landlords. </p>
<p><a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0018/5760/AHURI_Final_Report_No257_Assessing_management_costs_and_tenant_outcomes_in_social_housing_recommended_methods_and_future_directions.pdf?utm_source=website&utm_medium=report.PDF&utm_campaign=https://www.ahuri.edu.au/research/final-reports/257">Our research</a> confirms that the capacity for quantifying management expenditure in public housing has decayed over recent years.</p>
<figure class="align-left zoomable">
<a href="https://images.theconversation.com/files/139138/original/image-20160926-2470-1b9ld4r.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/139138/original/image-20160926-2470-1b9ld4r.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/139138/original/image-20160926-2470-1b9ld4r.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=843&fit=crop&dpr=1 600w, https://images.theconversation.com/files/139138/original/image-20160926-2470-1b9ld4r.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=843&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/139138/original/image-20160926-2470-1b9ld4r.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=843&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/139138/original/image-20160926-2470-1b9ld4r.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1060&fit=crop&dpr=1 754w, https://images.theconversation.com/files/139138/original/image-20160926-2470-1b9ld4r.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1060&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/139138/original/image-20160926-2470-1b9ld4r.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1060&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The Productivity Commission’s preliminary report highlights concerns about accountability for social housing providers.</span>
<span class="attribution"><a class="source" href="http://www.pc.gov.au/inquiries/current/human-services/identifying-reform/preliminary-findings/human-services-preliminary-findings-overview.pdf">Productivity Commission</a></span>
</figcaption>
</figure>
<p>A fundamental problem has been the states’ and territories’ failure to honour a <a href="http://www.dhs.vic.gov.au/__data/assets/pdf_file/0009/564381/Implementing-national-housing-reforms.pdf">2009 commitment</a> to enhance and standardise their housing service accounting procedures. The financing of public housing services remains equally opaque. Only by repeating a <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0010/2071/AHURI_Final_Report_No106_Operating_deficits_and_public_housing_policy_options_for_reversing_the_trend_2005_06_update.pdf?utm_source=website&utm_medium=report.PDF&utm_campaign=https://www.ahuri.edu.au/research/final-reports/106">major research exercise</a> last undertaken in 2007 could we quantify the relative financial (un)sustainability of each state and territory housing authority.</p>
<p>In any event, diversifying social housing on a larger scale would call for Commonwealth government leadership in strengthening the regulatory framework and making it truly national. This would be needed to ensure effective monitoring and enforcement of responsibilities and obligations transferred to non-government providers. Indeed, the Productivity Commission report highlights the need for accountability:</p>
<blockquote>
<p>Improving the accountability of service providers could improve a range of attributes of social housing.</p>
</blockquote>
<p>This supports the case for extending the current system for regulating community housing providers to cover public housing services.</p>
<p>In all of this, it is vital to keep in mind that Australia’s social housing system remains grossly underfunded. Currently available resources are inadequate even to properly maintain the existing portfolio, let alone to underpin the new supply needed to keep pace with growing need. </p>
<p>Any efficiency gains flowing from Productivity Commission-inspired managerial reforms will make only a tiny dent here. A commitment to overcoming this problem is a prerequisite if, in line with the report’s stated aspirations, the most disadvantaged are to have any real choice.</p><img src="https://counter.theconversation.com/content/66038/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Hal Pawson receives funding from the Australian Housing and Urban Research Institute (AHURI) and from the Australian Research Council (ARC). </span></em></p>The report’s stated goal is to make the social housing system work better. It does not present as a manifesto for an entirely marketised and deregulated framework driven by the profit motive.Hal Pawson, Associate Director - City Futures - Urban Policy and Strategy, City Futures Research Centre, Housing Policy and Practice, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.