Alternative Housing Ideas
The NSW housing market is not working for anyone.
Private housing is too expensive to buy, affordable housing can't keep up with demand, and public (or social housing) housing waiting list is 40,000 long.
What if it could be better? What if these three sectors of the housing market no longer worked in silos, but were merged together into a model that was affordable enough for everyone to have a home of their own, yet flexible enough to give low-income families the assistance they need.
What we are proposing is a fairer, more equitable model of housing, the Equity Housing Model.
Learn more about this Social IssueHousing Affordability
Lower-income households are the least able to absorb high housing costs and rising costs of living. They are generally grouped according to income levels defined by the NSW government:
These three groups are all impacted by housing affordability in vastly different ways, which makes solving the issue much more difficult.
To make housing truly affordable, the Equity Housing Model proposes three strategies to creatively reduce development costs.
If all three strategies can be implemented, the resulting cost savings would allow the sale of just 60% of the housing as Life Leases to cover the development costs. The remaining 40% would be saved and allocated as Affordable Rental and Social Housing.
A 2019 study by Troy, Randolph & van den Nouwelant, estimating the costs of social and affordable housing delivery, found that 75% of the costs of operating affordable housing were debt & interest (under a private finance model), with only able to cover 53% of costs.
Under the Equity Housing Model, the sale of 60% of housing as Life Leases would be able to cover the majority of the development costs, resulting in less debt, and fewer repayment costs. This would substantially reduce the operating costs of housing, to a point where the rent from Affordable and Social Rentals would be able to cover costs.
This would allow us to provide up to 20% Social Housing within the model without ongoing subsidy and still maintain long-term viability.
Under the Equity Housing Model, households of different incomes have a choice between different housing types and can choose the one they can most afford.
The model cross subsidises between higher and lower-income households to achieve a balance between affordability and financial viability.
Because all three housing types exist within the same building, households in Social and Affordable Housing can have their housing costs increased proportionally if their incomes increase, without the threat of eviction. Once they reach the income levels of a Moderate Income household, they may choose to purchase their home as a Life Lease.
The additional revenue from new Life Lease purchases can then be used to fund more housing.
The Equity Housing Model reimagines how we could develop housing in a way that improves the lives of people while making housing better, more affordable, and more equitable.
The model proposes an alternative vision where:
The next steps in developing this Design are:
If you are able to assist us in developing this Design, we would really appreciate you reaching out for a chat.