Supporting Affordable Housing Supply
The State of Affordable Housing Supply in Australia
Australia is grappling with a significant shortage of affordable housing, a problem that has persisted for decades. Despite the urgency of the situation, Australian governments have been slow to implement effective solutions through land use planning and development processes. This contrasts sharply with the approaches taken by other countries where affordable housing is a more integral part of urban planning (Calavita and Mallach 2010; Gurran and Whitehead 2011). The lack of robust policies and initiatives to address this issue has left many Australians struggling to find suitable and affordable homes. This paper explores the various efforts made by different states and territories in Australia to address the affordable housing supply crisis and examines the potential for future improvements.
Early Initiatives and Pilot Programs
Australia’s journey towards addressing the affordable housing supply began in the mid-1990s with the Federal Government’s Building Better Cities program. This program funded several demonstration projects aimed at urban renewal, including initiatives in Sydney’s Pyrmont Ultimo and East Perth. These projects included requirements for affordable housing, leading to the establishment of ongoing inclusionary zoning requirements in Pyrmont Ultimo. This approach was later extended to the Green Square urban renewal precinct, located between Sydney’s CBD and the airport. However, the NSW Government has historically been reluctant to allow local authorities to impose mandatory requirements for affordable housing through the planning process (Williams 2015). At the federal level, efforts to address affordability have primarily focused on increasing overall land and housing supply, rather than directly addressing the affordable housing supply.
Regional Approaches to Affordable Housing Supply
Western Australia and the Australian Capital Territory
While the NSW Government has been hesitant, other regions in Australia have taken more proactive steps to support affordable housing supply through planning systems. Western Australia and the Australian Capital Territory have integrated affordable housing initiatives into their broader housing strategies. These regions have enabled innovative subdivision and housing designs that translate into development cost savings, which can be passed on to eligible home purchasers or affordable housing developers (Rowley, James et al. 2017). Access to well-located land at lower or no cost is a significant factor in the viability of affordable housing development. Inclusionary planning levers can secure these opportunities as part of mixed tenure projects, ensuring that affordable housing is a key component of urban development.
South Australia and New South Wales
South Australia has had an inclusionary planning model as part of its housing policy since 2005. This model has been instrumental in ensuring that affordable housing is included in new developments. Similarly, a series of reforms introduced in NSW in 2009 opened new opportunities to secure affordable housing through the planning process (Davison, Gurran et al. 2012). These reforms aimed to address the chronic shortage of affordable housing by incorporating inclusionary zoning requirements into the planning framework.
The Role of Inclusionary Zoning
Inclusionary zoning is a critical tool in the arsenal of policies aimed at increasing the affordable housing supply. This approach requires developers to include a certain percentage of affordable housing units in new developments. The success of inclusionary zoning programs depends on the willingness of governments to enforce these requirements and the cooperation of developers. In regions where inclusionary zoning has been effectively implemented, it has led to a noticeable increase in the availability of affordable housing units. However, the reluctance of some governments to impose these requirements has hindered the widespread adoption of inclusionary zoning across Australia.
Future Directions and Policy Recommendations
To address the chronic shortage of affordable housing supply, Australian governments must adopt a more proactive and comprehensive approach. This includes:
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Strengthening Inclusionary Zoning Policies: Governments should enforce mandatory requirements for affordable housing in new developments. This can be achieved through robust planning frameworks that prioritize affordable housing.
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Increasing Access to Well-Located Land: Providing developers with access to well-located land at lower or no cost can significantly reduce development costs and make affordable housing more viable.
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Encouraging Innovative Housing Designs: Governments should support innovative subdivision and housing designs that reduce development costs. These savings can be passed on to home purchasers or affordable housing developers, making housing more affordable.
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Enhancing Inter-Governmental Coordination: Effective collaboration between federal, state, and local governments is essential to ensure that affordable housing initiatives are implemented consistently across different regions.
Conclusion
The shortage of affordable housing supply in Australia is a pressing issue that requires urgent attention. While some regions have made progress through innovative planning and policy initiatives, a more coordinated and comprehensive approach is needed. By strengthening inclusionary zoning policies, increasing access to well-located land, and encouraging innovative housing designs, Australian governments can make significant strides in addressing the affordable housing crisis. The experiences of regions like Western Australia, the Australian Capital Territory, and South Australia demonstrate that effective planning and policy can lead to tangible improvements in the availability of affordable housing. It is time for other regions to follow suit and prioritize affordable housing in their urban development strategies.
External Links
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Building Better Cities Program – Information on the Federal Government’s Building Better Cities program.
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Affordable Housing in Australia – Research and resources on affordable housing initiatives in Australia.
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Inclusionary Zoning in Australia – Detailed information on inclusionary zoning policies and their implementation in Australia.
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Housing Policy in South Australia – Information on housing policies and initiatives in South Australia.