The gravity of Australia’s housing affordability problem has led to its recent acknowledgement as a matter for urgent federal attention. The newly appointed Housing Minister of the incoming Labor Government has noted that housing affordability, defined as a ratio of income to housing costs, is currently at an all time low (Plibersek 2008). Figures cited by the Minister for the last quarter of 2007 show that the average home, costing four times the average wage in 1996, now costs seven times the average wage. By international comparison, Australia’s housing affordability is ranked one of the lowest in the world.

The 2006 Census demonstrated an increasing picture of housing stress for Parramatta households. Whilst Local Governments in NSW have been involved in the provision of affordable housing (see for example, Waverley, Randwick, Willoughby), many Local Governments have been concerned that housing is a Federal and/or State Government issue. What is beginning to emerge in Australia is a partnership approach to the provision of affordable housing supply. The most recent example of this approach is the National Rental Assistance Scheme – under this scheme an annual subsidy of 6,000 from the Federal Government and 2,000 from the State Government to provide affordable rental housing. The NSW Government has an Affordable Housing Innovation Fund which provides equity funds for partnerships (including Local Government) who are increasing the supply of affordable housing. The national Government is also sponsoring a $500 million, Housing Affordability Fund.