Four Solutions to the Housing Affordability Crisis

As housing affordability continues to pose a pressing challenge in Australia, a range of solutions are on the horizon that could provide much-needed relief to both current and prospective residents. However, with the waiting list for social housing growing longer each day, it’s essential that developers seriously consider and explore these potential solutions. 

Build-to-rent 

These large-scale housing models are purpose-built for renters, not landlords. Build-to-rent developments are professionally managed by a single owner (usually an investor) and offer long-term viability for the tenant. To make a substantial difference in the affordable housing crisis, build-to-rent must offer lower cost options which cater to a variety of demographics. 

Asset repurposing 

Three years on, the work-from-home model popularised during the pandemic has held up strongly. This has resulted in many office spaces remaining vacant nationwide, creating the opportunity for developers to transform these into residential spaces.  

Community-based land initiatives 

The main goal of these initiatives is to provide affordable housing through the usage of consolidated land assets already owned by the government. However, due to their structure, success of these projects relies on involvement from all sectors of the government – which includes federal, state, and local government.  

Public-private partnerships 

In public-private partnerships, the government contracts a provider to build (and sometimes manage) social housing infrastructure. In most cases, the initial funds for the projects are raised by a private partner, which is then repaid over a concession period specified in the contract. This is an advantage to the government, which otherwise doesn’t necessarily hold the funding for these projects.  

Pushing for change 

To tackle the housing crisis, mandatory inclusionary zoning is becoming commonplace around the world. This means a housing developer is required to include affordable housing as part of a project. In London, quotas of 30 per cent are common, though they can be as high as 50 per cent. Some developers believe up to 30 per cent of housing developed on public land in Australia should be dedicated to affordable housing.  

The root of the issue lies in housing supply, and there is a dire need for social and affordable housing in development plans. As developers, we hold the power to be an integral part of the solution, and it is our responsibility to thoroughly explore all options on the table.