Modern Australian
Men's Weekly

.

Australia's social housing policy needs stronger leadership and an investment overhaul

  • Written by Julie Lawson, Honorary Associate Professor, Centre for Urban Research, RMIT University

Australia will need another 730,000 social housing dwellings in 20 years if it is to tackle homelessness and housing stress among low-income renters. These are the findings of a new report from the Australian Housing and Urban Research Institute (AHURI), which shows social housing is in urgent need of direct public investment.

Read more: Budget 2017 charts new social and affordable housing agenda

Instead of directly investing in social housing, the federal government has sought to establish investment opportunities for other actors, such as pension funds and private corporations.

The vehicle for this investment is the National Housing Finance Investment Corporation (NHFIC), which was established to offer lower cost finance to social housing providers.

The federal government has also encouraged states and territories to focus public resources on supply, land policy reform and the use of planning methods such as inclusionary zoning to deliver affordable and social housing.

Read more: England expects 40% of new housing developments will be affordable, why can't Australia?

These initiatives are worthy, but they won’t generate enough new social housing supply on their own. Without direct public investment in the form of a needs-based capital investment program, the government is unlikely to fill the social housing gap.

Needs-based capital investment is where decisions on what to invest is not only based on financial return, but also on other factors like the effects on society (so infrastructure investment is one which is needs based).

And needs-based capital investment provides the most cost effective mechanism to influence the scale, location and quality of housing produced.

Social housing supply is dangerously lagging

The Australian Bureau of Statistics estimated 116,000 people were homeless in 2016, living in improvised and severely overcrowded homes.

Our further analysis of the 2016 Census shows 315,000 households rely on very low incomes, paying more than 30% of their income on rent. This is known as housing stress.

Australia's social housing policy needs stronger leadership and an investment overhaul Right now, 430,000 social housing units are needed in Australia to address homelessness and housing stress. Shutterstock

To address homelessness and housing stress right now, we need an additional 430,000 social housing dwellings. And this will grow over time.

Between 1951 and 1996, Australian jurisdictions built 8,000 to 14,000 social housing dwellings per year. In those years, social housing building programs were funded through direct public investment, with grants and long-term loans.

But without direct investment, social housing construction levels have languished since the mid 1990s.

In fact, the total number of Australian households increased by 30% from 1996 to 2016, and yet social housing grew by just 4%. This means there is a substantial backlog in supply, and the need for resources is now urgent.

Subsidies alone won’t cut it

It’s naive to think social housing systems can be adequately resourced through demand-side subsidies alone, such as cash support to tenants. In the UK, for instance, we’ve seen that while rent assistance budgets have grown, they haven’t helped to grow an affordable supply of homes, especially in tight, unregulated private rental markets.

In Australia, the Productivity Commission found that even after rent assistance is paid to eligible pensioners, 40.3% of them pay more than 30% of their incomes on rent. This leaves little for life’s other essentials, such as food, medical care and electricity.

Read more: Chilly house? Mouldy rooms? Here's how to improve low-income renters’ access to decent housing

What’s more, the spatial distribution of need for social housing is just as important as the overall volume, as the costs for these dwellings vary from A$146,000 to A$614,000, depending on local land values, building types and construction costs in different regions.

So it’s imperative any public investment program is carefully designed and spatially nuanced.

The AHURI report calls for a new National Housing Authority

The AHURI report also assesses the costs of land and construction needed for social housing, which would underpin a capital investment program.

Australia's social housing policy needs stronger leadership and an investment overhaul The Collingwood Housing Estate in Melbourne, featuring a mural of four tower residents. There is a substantial backlog in social housing supply, and the need for resources is urgent. AAP Image/Supplied by Common State

It calls for the creation of a National Housing Authority to inform, co-ordinate and fund the expansion of new social housing supply through a needs-based capital investment program, together with the existing National Housing Finance Investment Corporation (NHFIC).

In the past, social housing relied on external industry bodies, such as the National Housing Supply Council, to advise on Australia’s future housing needs.

Read more: Social housing protects against homelessness – but other benefits are less clear

But a national housing authority would provide more effective, consistent and authoritative leadership. It would have the responsibility and resources to plan for and fund more inclusive and sustainable housing outcomes. And it would co-ordinate this effort with other key stakeholders including state Housing Authorities, not for profit community housing providers, the National Disability Insurance Scheme and Clean Energy Finance Corporation.

A net benefit to society

The way cost-benefit assessments are conducted must be changed so the social benefits of social housing are properly quantified. This is necessary not only to capture both productivity and social gains, but also for making a coherent rationale for social housing investment.

But there is more work to be done to improve methods for cost-benefit analysis for social housing, the report says.

In contrast to conventional infrastructure, the housing sector has suffered from a long-term lack of investment. This means the methods for cost-benefit analysis are not yet as advanced.

Read more: Is social housing essential infrastructure? How we think about it does matter

It’s clear there is no fundamental barrier to government sourced large-scale investment in social housing. An improved cost-benefit analysis method can provide assurance to funding agencies that a long-term social housing construction program is viable and cost effective.

Authors: Julie Lawson, Honorary Associate Professor, Centre for Urban Research, RMIT University

Read more http://theconversation.com/australias-social-housing-policy-needs-stronger-leadership-and-an-investment-overhaul-119097

Powering Shepparton’s Businesses: Expert Commercial Electrical Services You Can Count On

When it comes to running a successful business, having reliable, compliant, and efficient electrical systems is non-negotiable. From small retail ou...

Maximise Efficiency: Cleaner Solar Panels for Optimal Performance

Solar panels are a smart investment in energy efficiency, sustainability, and long-term savings—especially here in Cairns, where the tropical sun ...

7 Common Air Conditioner Issues in Melbourne – And How to Fix Them

Image by freepik Living in Melbourne, we all know how unpredictable the weather can be. One moment it’s cold and windy, the next it’s a scorchin...

Powering Palm QLD with Reliable Electrical Solutions

Image by pvproductions on Freepik When it comes to finding a trustworthy electrician Palm QLD locals can count on, the team at East Coast Sparkies s...

The Smart Way to Grow Online: SEO Management Sydney Businesses Can Rely On

If you’re a Sydney-based business owner, you already know the digital space is crowded. But with the right strategy, you don’t need to shout the...

What Your Car Says About You: The Personality Behind the Vehicle

You can tell a lot about someone by the car they drive—or at least, that’s what people think. True Blue Mobile Mechanics reckon the car says a l...

The Confidence Curve: Why Boudoir Photography Is the Empowerment Trend You Didn’t Know You Needed

Boudoir photography has been quietly taking over social feeds, Pinterest boards, and personal milestones—and for good reason. It’s not just abou...

Understanding Level 2 Electricians: Why Sydney Residents Need Licenced Experts for Complex Electrical Work

When it comes to electrical work around the home or business, not all electricians are created equal. In Sydney, particularly when you're dealing wi...

Retirement Anchored in Model Boat Building for Waterford’s Doug Unsold

WATERFORD — When Doug Unsold sees his ship come in, it’s usually one he’s crafted with his own hands. The 67-year-old retiree from Waterford ...

The Science Behind Alarm Clocks and Your Circadian Rhythm

Waking up on time isn’t just about setting an alarm—it’s about working with your body, not against it. At the heart of every restful night and...

How to Use Plants to Create a Calming Atmosphere in Your Home

In today’s fast-paced world, cultivating a calm, soothing environment at home has never been more important. Whether you live in a busy urban apar...

How Maths Tutoring Can Help Students Master Maths

Mathematics can be a daunting subject for many students, often causing stress and frustration. However, maths tutoring has proven to be an effective...

Refurbished iPads Are Better Than New Ones (Here's Why)

Image by rawpixel.com on Freepik Apple's refurbished iPad program has quietly become one of the best deals in tech. While everyone obsesses over the ...

Your Guide to Finding the Right GP: What Perth City Doctors Offer Today

Choosing a General Practitioner (GP) is one of the most important health decisions you’ll make. Luckily, Perth’s vibrant CBD now hosts a new ge...

Why Every Mining Operation Needs a Robust Safety Management System

Mining is one of the backbones of the Australian economy, particularly in Western Australia. Back in 2019-20, mining contributed 10.4% of Australiaâ...

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers...

How to Choose the Right Lawyers in Sydney for Your Situation

When faced with a legal issue, selecting the right legal representation can make all the difference. Whether you're dealing with a personal injury, ...

Building a Governance Model for Headless Content Management at Scale

Image by pch.vector on Freepik There's never been a better time to implement a headless content management system (CMS) to gain the flexibility and ...