This briefing paper seeks to expand on this discussion by outlining in detail the legislative and policy framework related to affordable housing in New South Wales (NSW) and more broadly in Australia. This will provide the basis for the discussion to follow in the latter part of the paper regarding future policy options with a particular focus on the supply-side planning and financing mechanisms available to government to facilitate affordable housing supply growth.

Affordable housing can be understood in a narrower and broader sense. The broader use of the term encompasses any private rental housing for low to middle income residents, where rents for these households is at a level that enables them to meet other basic living costs. In the context of this paper and the Australian context more generally, narrowly understood affordable housing is a specific type of housing built to be occupied by a range of low to moderate income households that are ineligible for public housing and also unable to participate effectively in the private rental market. Typically, this category of affordable housing is delivered through government intervention of one sort or another and is managed by dedicated non-profit, private affordable housing companies.