Powered by MOMENTUM MEDIA
subscribe to our newsletter

Report reveals ‘undersupply’ of affordable homes in NSW

New research has identified a shortage in NSW’s affordable housing market and called for the government to develop comprehensive policies to stimulate supply.

The Supporting affordable housing supply: inclusionary planning in new and renewing communities from the Australian Housing and Urban Research Institute (AHURI) has identified an “undersupply” in NSW’s affordable housing market.

The study compared the inclusionary planning approaches (government mandates that incentivise the development of affordable housing) of the NSW and South Australian governments. 

AHURI found that such incentives delivered a “much smaller proportion” of affordable housing in NSW in comparison to South Australia, despite “much greater population growth”.

The research discovered that affordable homes made up between 0.5 per cent and 1 per cent of Sydney’s total housing supply between 2009 and 2015.

Advertisement
Advertisement

In comparison, in the period between 2005 and 2015, affordable homes made up 17 per cent of total housing supply in South Australia. 

AHURI has called for the extension of inclusionary planning approaches and voluntary planning incentives across the country, which it claimed could be mandated when “land is rezoned for residential development, when planning rules are varied for particular projects, or following significant infrastructure investment”.

Executive director of the NSW Property Council Jane Fitzgerald expressed support for such measures and pointed to the Greater Sydney Commission’s recent finalisation of an affordable rental housing target for new residential developments of between 5 per cent and 10 per cent.

Ms Fitzgerald, however, called for a consistent, transparent and strategic approach brought about by a single scheme.

“Consistency and transparency in the scheme is critical; it is really important that any affordable housing targets are clear before land gets rezoned so the amount paid for the land reflects the requirements,” the executive director said.

PROMOTED CONTENT


“If this doesn’t happen, the costs of the scheme will be passed on to average home buyers, worsening affordability for them.”

Ms Fitzgerald urged the NSW government to develop a Housing Affordability Policy to “stimulate the supply of affordable housing”.

“The AHURI report highlights that we must have a strategic approach to more affordable housing, not piecemeal or arbitrary action,” the official added.

“Ultimately, the NSW government should develop a NSW Affordable Housing Policy governing not only how local councils apply affordable housing levies but exploring potential incentives, state and local, to stimulate the supply of affordable housing through a range of planning and/or taxation measures including supporting build-to-rent.”

[Related: NSW Productivity Commission will tackle housing affordability]

Report reveals ‘undersupply’ of affordable homes in NSW
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.