DEC newsImproving Housing Supply and Affordability in Australia

Under the heading ‘Improving Housing Supply and Affordability,’ the Government declared, ‘Safe and affordable housing is central to improving productivity and enhancing the wellbeing of Australians.’ It said, ‘Currently, too many Australians cannot access such housing.’

In response, the Government announced its intention to create a new Housing Accord, with the ‘aspirational target’ of one million new, well-located homes over five years from 2024. However, this visionary agenda cannot be achieved without the cooperation of all levels of government. To be successful, the Accord will require expedited zoning, planning and land release for social and affordable housing. It will also need a willingness from private investors and industry super funds to invest in the new builds. In short, the Government is not proposing to do the Accord’s heavy lifting by itself.

Other elements of the policy of interest to DEC Housing include:

• Reaching agreement on a National Housing and Homelessness Plan to establish a national strategy to address challenges faced by the housing and homelessness sector

• Establishing a $10B Housing Australian Future Fund to provide a sustainable funding source to increase housing supply and improve service delivery (including 20,000 new social housing dwellings, 4,000 of which will be allocated to women and children impacted by domestic violence and older women at risk of homelessness, and 10,000 new affordable dwellings, including for frontline workers)

Of particular note, is a reference to ‘well-located areas’ where this new housing should be built. 

The policy suggests that ‘well-located’ includes being close to schools and transport. For people with disability, whose interests must be considered in developing social and affordable housing, ‘well-located’ should also mean ‘close to health services, hospitals, and other support services and informal supports’.

Of particular note, is a reference to ‘well-located areas’ where this new housing should be built. 

The policy suggests that ‘well-located’ includes being close to schools and transport. For people with disability, whose interests must be considered in developing social and affordable housing, ‘well-located’ should also mean ‘close to health services, hospitals, and other support services and informal supports’.

In developing new social and affordable housing, we need to also consider urban design issues, such as making the areas and regions within which the housing is situated as accessible as possible for people with disability. This thinking needs to take account of technological innovation and contemplate the development of informal supports, not just for people with disability but others in the community who may require assistance or support in their lives. 

And although it’s not referred to in Budget papers, the development of this new housing should be treated as an opportunity to develop and embed technology that optimises residents’ independence and ensures they are connected to their community. 

The drive to create new social and affordable housing in Australia must see a focus on new energy options which reduce carbon emissions and ensure residents are comfortable in their new homes. The Accord refers to an energy efficiency standard in each new home of at least seven stars on average, which means some will be lower than that figure, and others will be higher. 

What the policy announcement doesn’t say is that, for this policy to deliver what it says it will, the Australian community will need to confront some significant ‘NIMBY’ attitudes which have stymied valuable and needed development for some time. Addressing these issues should be part of the National Housing and Homelessness Plan. 

This Plan should also have KPIs reported through Parliament, which are measured against outcomes, not outputs. They should allow us to measure the socio-economic impact of social and affordable housing, not only for individuals, but also in terms of costs avoided in areas such as family violence, child protection, health, mental health, justice, alcohol & drugs, disability services and aged care. And, KPIs should include measurements of overall housing affordability and rent rates. This is because a significant increase in housing supply should see a reduction over time in the cost of housing, including private and rental housing.

The Federal Government’s new social and affordable housing policy is a good start, but it will take a coordinated and comprehensive approach to finish the story, which will have many authors, who will hopefully have new ideas about how to tell it.

DEC Housing has applied to become a community housing provider. We look forward to participating in the drive to assist more Australians into secure, affordable homes.