The latest news on housing affordability makes depressing reading. It shows just how far we have to go to make sure there’s enough housing for all Australians – now and in the future.
Housing affordability plunged 18.4 per cent in the December quarter and was 22.3 per cent lower than 12 months earlier.
While 152,000 new homes are expected in 2010 that's still below the 190,000 required to keep pace with Australia's population growth.
NSW will have to build more than 40,000 houses a year if the state's population is to reach its forecast population level of 10.5 million by 2050.
Creating more affordable housing is more than just an issue for first home buyers – it’s a crucial plank in the fight against homelessness.
More affordable housing means less people on solid incomes ‘camping’ in the rental market as they try to save enough money to buy their own home.
More space in rental means more opportunities for people on low incomes and greater flexibility for homeless agencies in moving people from supported accommodation into independent living.
If we can’t boost affordable housing stock more Australians will be forced to live in substandard accommodation.
I don’t think there’s any question the Federal Government is committed to tackling the problem.
The Rudd Government is the first administration that’s shown the courage to tackle an issue that has remained untouched for decades.
There are even signs that state governments are rolling up their sleeves.
So what’s stopping things ramping up even further – enough to meet demand and put us squarely on track to meet the Federal Government’s homelessness targets of 2020?
From my perspective, one of the great roadblocks to getting things moving is local government.
Harry Triguboff – one of Australia’s best known housing developers – said recently:
“The development process has become too politicised. Councillors are convinced that if they approve developments they will lose votes."
It’s easy for Harry’s opponents to dismiss his comments as sour grapes – the complaints of a frustrated businessman who has had his plans for development stymied by community-minded councillors.
But there’s more than a ring of truth to his views.
Time and time again local councillors are blocking development or prolonging the approval process for new affordable and low income housing – particularly where it’s needed most in inner suburban areas – based on little more than a ‘not in my backyard’ attitude and with no accountability for their actions.
If facilitating the development of affordable housing isn’t in the backyard of local councillors then whose backyard is it?
Recently a Victorian affordable housing project in which Mission Australia was involved was approved subject to conditions by council town planning. It was then flatly overruled by councillors.
This was a project that had already received town-planning approval – and was in line with federal and state government objectives for affordable housing – and yet councillors did not have to provide any serious grounds for overturning the decision of their more qualified staff.
Experiences like this are common throughout Australia. Yes, in most cases there’s an alternative body to which an appeal can be made but many projects don’t survive the delays and costs involved.
Meanwhile our affordable housing crisis deepens.
We must find a way to convince communities to invite housing development into their areas and not reject it out of hand.
I’ve been impressed by a UK proposal to address this very issue. The suggestion is that government match the council rates – dollar for dollar – for any new home, for six years, with the money to be used exclusively for community programs in that area. For affordable housing dwellings, this figure is proposed to increase to 1.25 times the new home’s rates.
It’s smart, innovative thinking and serves as a model for how we might overcome the negativity and knee-jerk obstructionism which so often characterises the passage of affordable housing projects through council.
Local councils do not operate in a vacuum.
Their lack of cooperation will continue to force prices up and impede efforts to both ensure we have enough housing in this country and reach the target of halving the number of homeless people by 2020.
They have a responsibility to understand the bigger picture when it comes to affordable housing in Australia and be part of a solution.
Or if not, to get out of the way.
Toby Hall is the Chief Executive Officer of Mission Australia
This piece was published in the Sydney Morning Herald on 21st March
More than 17,000 Indigenous Australians living in remote communities have been supported to help manage their money through a joint Australian Government and ANZ bank initiative that is marking its five year anniversary today.
