Social and affordable housing is often viewed as a safety net for a small group of vulnerable Australians, but it has the potential to support prosperous, sustainable, and inclusive communities. It should be regarded as essential infrastructure for successful cities and regions given the benefits it provides in:
- health cost savings
- reduced domestic violence
- reduced costs of crime
- enhanced human capital
- improved labour market productivity, and
- better education outcomes.
The construction of social and affordable housing received a boost during the 2008 Global Financial Crisis under the Rudd Government, but since then, investment in this sector has declined significantly. At present, the combined outlays from the Commonwealth and State/Territory governments are barely enough to replace outdated housing stock.
To rebuild Australia's social and affordable housing infrastructure, a reformed funding agenda is required among the Commonwealth, States/Territories, Community Housing Providers, investors, and developers. A successful housing assistance policy should leverage public sector investment, private capital, and income support for tenants. Clarifying roles and responsibilities based on subsidiarity could lead to greater stability in policy settings across all participating governments and ensure a focus on long-term outcomes across all three funding levers.
This paper delves into the trends and prospects associated with the National Housing Policy and presents ideas for how to fund the rebuilding of Australia's social and affordable housing infrastructure.
