Social & Affordable Housing

Fairness and justice are cornerstones of what we are working towards, because we know they are vital to making a better Australia.

The housing crisis is tough on all of us at the moment. But it’s toughest for our most vulnerable. Many people rely on social housing due to factors like low income, disability, homelessness, violence, or instability, making it an essential part of the housing system.

We have fallen behind 

By international standards, Australia has a very limited supply of social and affordable housing, and the wait time is long.  Frequent estimations indicate that people could be waiting between 5 and 10 years for a home. 

Currently, there is way more demand than supply for social housing. This is partly due to population growth and the rising cost of living, which has made private rentals less affordable. But the situation is worsened by the steady decline in social housing stock over the last 30 years, dropping from 5.6% of total housing in 1991 to just 3.8% in 2021.

The waiting lists for public housing are long: 

• Despite falling in 2022–23, the number of households on waiting lists rose 3.8% annually over the 5 years to 2022–23, reaching 169,000 people.  
• The number of ‘greatest need households’ on waiting lists rose at an even faster annual rate of 8.7 per cent over the same period.  
• The number of State Owned and Managed Indigenous Housing (SOMIH) households on waiting lists rose by 10 per cent over the year to 2022–23, from 13,700 to 15,000.  

With supply issues and long wait times, it’s not surprising that homelessness remains a persistent problem in Australia, with the numbers increasing in recent years.

There’s no ‘if’, only ‘how?’ 

Social housing provides significant economic and social benefits to tenants and broader society, as well as cost savings to governments and across various sectors. For tenants it improves health and quality of life, and reduces demand and costs for other government services, such as healthcare, mental health, justice, and homelessness services.

As an egalitarian society with a legislated welfare system, the community agrees on providing additional support to those in need. The question is how?

There are many ways of providing housing support to low-income and vulnerable householders and Australian governments have tried different options over the years.

Between the 1940s and 1980s, government housing agencies mainly focused on direct provision by building large volumes of new public housing.   

However, from the 1980s, governments moved towards indirect provision by providing rent assistance payments to help more households rent in the private market. The major rent assistance program is Commonwealth Rent Assistance (CRA).

Some argue less direct support is preferable for individuals in the long run as they are less likely to become locked into specific government housing and have more freedom to choose where they live. 

Not just quantity, but quality. 

A significant proportion of social housing is in poor condition, with 22% of dwellings having major structural defects – that is double the rate of regular households! Around 20% of these homes are considered physically unsatisfactory, highlighting a need for significant investment to address maintenance issues. 

The Many Sides of the Coin  

Improvements to social and affordable housing might reduce the demand for comparable private rental properties as individuals are more inclined to access the social housing option.  

However, opinion is divided on how more social housing should be provided, including who should pay. The cost of supplying housing is significant, and governments don’t just need to budget for the initial build but for ongoing maintenance. The significant draw on public funds was a key reason for governments stepping back decades ago.  

Policy Personified 

Johnny is 62 and has lived in social housing for years, as his financial situation means he cannot afford a private rental. His housing commission flat is small and suits his needs, but the building is in dire need of substantial repairs, and many of his neighbours have already left. The government could repair his residence, but this may put him at risk of homelessness.

Mandy, 36, can just about afford to live in the private rental market. She has lived in social housing before but prefers not to take space from someone who has no other options. Either Mandy falls into further financial stress or goes back into social housing, putting more strain on an already overburdened system.