With a NSW state election looming, key policy platforms are currently under the microscope of business, industry and the broader community, including how all sides of politics plan to address the growing housing affordability challenge.
While the NSW Government announced a $2.8 billion housing package in the recent State Budget, the biggest government spend on home ownership measures in decades, there is much more to be done.
Home ownership is not a silver bullet, particularly for those on low to moderate incomes including Aboriginal people, single women, children, older Australians, those with disabilities and key workers. There is a need for governments, along with the private sector, to invest in an increased diversity of rental housing if we are to sustain the diversity of people and incomes in our neighbourhoods that provide the ingredients for great places.
According to the Give Me Shelter study conducted by SGS Economics and Planning, a chronic lack of affordable housing is set to cost taxpayers $25 billion a year if nothing is done. Businesses are struggling to find and keep workers who can afford to live within an acceptable commuting range.
Sky-rocketing rents, a hot housing market, and the pressures of a high cost of living are limiting choices for Sydney’s essential workers, at a time when their city needs them most. These people are often on low to moderate incomes and home ownership may be out of reach or not practical due to the transient nature of their work.
So what’s the answer?
Collaborative approaches like the partnership between SGCH and Lighthouse Infrastructure on the Highline development at Westmead in Sydney, are helping to solve the key worker housing affordability problem, with tenants meeting the criteria of low to moderate income bands, and working in designated sectors such as emergency services, health and education.
Superfunds and private investors are showing a real interest in scalable models like Highline, but government backing is also needed. SGCH and Lighthouse would like to see the investment model expand in NSW and other jurisdictions, with other community housing providers and investors.
We look forward to working with Government and other partners on scalable solutions which can make a substantial impact on Australia’s chronic affordable housing shortage.