Procuring Social and Affordable Housing: Changing Demographics and Typologies

Abstract

The changes occurring in the demographics of those needing access to social and affordable housing in Australia, and the associated impact on housing typologies, is the focus of this report. The aim of the report is to inform approaches to the provision of such housing over the next 20 years. This research is one element of the Sustainable Built Environment National Research Centre’s (SBEnrc) Procuring Social and Affordable Housing project . This project has also investigated current and emerging social procurement approaches and funding and financing models, in order to develop a set of social procurement criteria to inform policy and delivery decision-making. This report addresses current and emerging responses to the present situation in which social housing waiting lists are excessive and unlikely to be fully addressed in the foreseeable future. Home ownership and private rental is now unaffordable to many of those on low and medium incomes in a range of locations across Australia, placing additional pressure on social housing waiting lists. It is also now evident that housing stock (especially in social housing) no longer aligns with the demographic profiles of those needing and/or wanting housing. And there is also growing community demand for appropriate, resilient and resource-efficient housing, and community connectedness. Key demographic changes highlighted in this report include: 1) The population is aging. 2) Household composition is changing. 3) Cities are key growth areas. 4) Home ownership is declining. Together, these changes suggest the need for significant increases in social and affordable housing. This is particularly so in inner city and middle-ring areas in Perth, Brisbane, Sydney and Melbourne, where demand outstrips supply. Providing appropriate housing in remote and very remote Indigenous communities is also a priority highlighted in this report. The changes in demographics identified are largely due to: longer life expectancy; migration (including of Indigenous households to urban locations); and growing household diversity (e.g. one person and multigenerational households). These general trends are altering the composition of households, and affecting lifestyles and the demand for appropriate housing. In terms of social and affordable private rental, these trends are affecting the capacity of governments and housing providers to effectively address specific needs. Key needs in terms of changing housing typologies highlighted in the report include: 1) More diverse housing typologies and approaches are needed which: are affordable (reduce up-front costs); are appropriate (respond to current and emerging cohort demographics); ensure affordable living (i.e. energy, water and transport); are resilient (address climate adaptation); and address community connectedness. 2) Indigenous housing for remote and very remote Indigenous communities which addresses environmental, cultural and spiritual needs. 3) Appropriate housing (in the right location) for those with a disability. 4) In urban centres higher density infill, more affordable community and private rental housing and inclusionary zoning targets for both social and affordable housing. 5) Responsive planning systems. What is also important is that we build a resilient Australian housing system, especial for those needing social and affordable housing. To do this we need to be able to better track and use data to respond to trends in cohort demographics, in order to better align housing portfolios. This is now being undertaken in several Australian States, where administrative data is being better utilised to build evidence-based policy. There is a need for such data across the whole population to be better tracked, visualised and shared across the housing system as a whole, to inform future planning and construction. A note of caution is also raised in terms of following current trends in the provision of housing types. The growth in social isolation has been recently highlighted by several organisations including Families Australia . This SBEnrc report finds a strong trend in the Australian population towards single person households, and thus a need for additional 1-2 bedroom housing to meet this need. However, we need to consider if this is sustainable as a society, and for individuals. Are there other policy initiatives we should be investigating before committing to long-term housing portfolios which support this way of living? One such example is the growing awareness of elder intentional communities , and associated housing typologies. Future research in this area, exploring other ways of living to ensure housing system resilience, should be considered.