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Understanding the Australian Housing System

Understanding the Australian Housing System. NSW Disability Network Forum workshop Adina Hotel, Crown St Surry Hills 4 February, 2014. Introduction. Acknowledgement of the traditional owners of the land we meet on today About Shelter NSW and what we do

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Understanding the Australian Housing System

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  1. Understanding the Australian Housing System NSW Disability Network Forum workshop Adina Hotel, Crown St Surry Hills 4 February, 2014

  2. Introduction Acknowledgement of the traditional owners of the land we meet on today About Shelter NSW and what we do Focus of discussion on the Australian housing system and how it works

  3. Central proposition Today’s housing landscape is dominated by housing stress and an insufficient supply of affordable housing

  4. Aim of today’s workshop To focus on some implications for your work as disability advocates through an examination of the housing system & the current crisis experienced by households on low incomes To provide information and resources about the housing system and some of the drivers of housing policy

  5. What is the housing system and how does it work? The phenomenon of housing stress and the need for affordable housing Housing tenures The role of governments How housing policy is formed The workshop covers

  6. Recent reports & useful articles • Anglicare Australia, 2013, Rental Affordability Snapshot • The Politics of Housing, Sarah Toohey, Campaign Manager, Australians for Affordable Housing, 2012 • Renovating housing policy. Grattan Institute, Jane-Frances Kelly, October 2013

  7. More reports & useful articles • “Living Independently…A Guide to the NDIS & Housing”, Bruce Bonyhady, Chair NDIA, HousingWORKS – Dec. 2013 • New South Wales Auditor-General Report – Performance Audit ‘Making the best use of public housing’ 30 July, 2013

  8. Quick quiz:housing myth or reality? True or false? • Talk to the person you are sitting next to and consider the eight statements on housing – true or false • Be ready to report back answers

  9. Tenure of all Australian households, Pie chart 2011

  10. The meaning of home • The establishment of a home goes to the heart of what makes us human, and the bonds and connections which enable individuals to live life with dignity and contribute to the wellbeing of others. • The health of the wider community and the economy on which it depends, hinge on the continuing contribution of individuals. Without a home this contribution is not possible.

  11. Housing as a wealth-creating asset Housing is not only a place called home, but also an asset that accrues value – which impacts on all three tenure forms: • Homeownership: accrues homeowners’ wealth • Rental housing: accrues wealth for landlords • Social housing: comprises an asset that can be reconfigured by social housing providers to meet other needs

  12. Major housing challenges in Australia Today’s housing landscape is dominated by housing stress and an insufficient supply of affordable housing: A low-income or moderate-income household is in ‘housing stress’ if they pay more than 30% of their gross income on housing Housing is generally considered to be ‘affordable’ if household members are not in ‘housing stress’ after they have paid for their housing (whether they are renting or buying)

  13. Insufficient supply of affordable housing In Australia in 2009–10, there was a shortage of 539,000 private rental dwellings that were both affordable and available for renters with gross incomes in the bottom 40% of income distribution Insufficient supply is linked to: high levels of housing stress: in 2009–10, 60% of lower-income rental households were in rental stress low vacancy rates in private rental market: national vacancy rate for dwellings in the private housing market was 1.9% in January 2013. homelessness: estimate of 105,237 homeless people on census night in 2011 — a 17.3% increase from 2006

  14. Housing stress by tenure Housing stress varies by tenure — in NSW in 2009–10: 62% of lower-income renter-households were in rental stress 54% of lower-income homeowner-households were in mortgage stress

  15. Key housing data: Sydney LGA Housing stress — census night in 2011 • 95.3% of low-income renter-households are in rental stress • 79.3% of low-income homeowner-households are in mortgage stress Affordable rental and purchase stockin September 2012 • 3% of rental stock is affordable for very low-income households • 8% of rental stock is affordable for low-income households • 0% of home purchase stock is affordable for very low-income households • 0% of home purchase stock is affordable for low-income households Public housing stock — December 2012 • 8,695 dwellings

  16. Key housing data: Wollongong LGA Housing stress — census night in 2011 • 76% of low-income renter-households are in rental stress • 58.8% of low-income homeowner-households are in mortgage stress Affordable rental and purchase stockin September 2012 • 16% of rental stock is affordable for very low-income households • 45% of rental stock is affordable for low-income households • 0% of home purchase stock is affordable for very low-income households • 5% of home purchase stock is affordable for low-income households Public housing stock — December 2012 • 6,440 dwellings

  17. Key housing data: Campbelltown LGA Housing stress — census night in 2011 • 71% of low-income renter-households are in rental stress • 62.5% of low-income homeowner-households are in mortgage stress Affordable rental and purchase stockin September 2012 • 5% of rental stock is affordable for very low-income households • 30% of rental stock is affordable for low-income households • 0% of home purchase stock is affordable for very low-income households • 8% of home purchase stock is affordable for low-income households Public housing stock — December 2012 • 6,083 dwellings

  18. Components of a housing system include: • The stock — that is, the type of housing • The condition of the stock and where it is located • How housing is allocated • The kinds of tenure (for example, homeownership, social housing and private rental)

  19. The housing system The way housing is organised is called a housing system. It is a combination of: • how housing markets work (how housing is produced, distributed and consumed — the markets are shaped by demand and supply) and • how governments intervene to correct imbalances in the markets

  20. The way the housing systemdevelops depends on: • History • Values • Politics • Economics • Traditions

  21. A contest of ideas or paradigms Recognise the existence and effects of competing paradigms: • Neoliberalism – small government, reliance on the logic of the market, individual effort and freedom, valorisation of continued growth, deregulation • Social justice – welfare or interventionist state, regulation of economy around work & job creation, mandated provisions of social security for individuals on low incomes, collective responsibility, social inclusion, human rights

  22. Social justice - policy goals Anglicare Australia – Rental Affordability Snapshot 2013: ‘Policy interventions must address housing inequality forcefully and with out hesitation. Along with income, affordable housing is one of the few issues that genuinely crosses all sectors and population groups within Australia. Like NDIS or Gonski, this is an issue that will take genuine intervention from governments, business and society as a whole. Action for change must be lead and as such it is the Federal Government which must make a commitment to intervention.’

  23. Policies are based on values and philosophiesOften we accept those values without questioning them

  24. Three government policy directions • Market orientation: individual freedom, consumer choice, self-help, entrepreneurialism • Welfare/citizenship: community, common interest, social partnership, universal entitlement • Mixed model: targeted welfare delivery, safety net, some universal services, the market will deliver

  25. Homeownership The Great Australian Dream • 2 barriers for low-income households becoming homeowners: high entry costs, plus the challenge of meeting recurrent costs • House price inflation is socially divisive • Price inflation of houses: it is not just about the value of the land

  26. Homeownership In 2011, 66% of NSW households were homeowners: • 33% were owners without a mortgage: 820,004households • 33% were owners with a mortgage: 824,295 households

  27. Private rental housing Privately-owned housing which an owner rents out to someone else

  28. Private rental housing In 2011, 18% of NSW households were in the private rental market: 430,134 households

  29. Private rental Challenges facing low-income households in the private rental market include: • Expensive • Low vacancy rates • Insecure • Discrimination

  30. Social housing In 2012, there were 141,303 households in social housing in NSW: • 111,087 households in public housing dwellings • 25,844 in community housing dwellings • 4,372 Aboriginal Housing Office dwellings (state-owned and managed Aboriginal housing)

  31. Social housing Trends in social housing: Residualisation Significant decline in social housing funding between 1996 and 2008: if social housing dwellings as proportion of total housing supply had been maintained at 1996 level, there would have been additional 90,000 dwellings in 2008 Increased allocations to those in greatest need Many low-income households are no longer eligible for social housing

  32. Public housing • Housing that is owned and managed by government and rented to eligible households

  33. Public housing Public housing in NSW: • Dwellings (2012): 112,310 • Occupied dwellings (2012): 111,087 • Households paying less than market rent (2012): 101,148 • New households assisted (2012): 6,505 • Applicants on waiting list (2012): 52,986 • ‘Greatest need’ allocations as proportion of all new allocations (2011–2012): 65.6%— compared to 38.9% in 2007–08

  34. Community housing • Housing managed by non-profit non-government landlords • Aboriginal housing organizations are not usually included

  35. Community housing Community housing in NSW: • Dwellings (2012): 25,311 • New households assisted (2012): 4,021 • ‘Greatest need’ allocations as proportion of all new allocations (2011–2012): 69.7%— compared to 69.7% in 2007-08

  36. Aboriginal housing Housing targeted to Aboriginal people that is owned or managed by Aboriginal organizations, including: • state-owned and managed Aboriginal housing (NSW Aboriginal Housing Office) • Aboriginal community organizations (such as Aboriginal land councils)

  37. Aboriginal housing NSW Aboriginal Housing Office: • Dwellings (2012): 4,478 • Occupied dwellings (2012): 4,372 • Households paying less than market rent (2012): 2,854 • New households assisted (2011–12): 418 • Applicants on waiting list (2012): 2,200 • ‘Greatest need’ allocations as proportion of all new allocations (2011–2012): 31.0%— compared to 12.9% in (2007–08)

  38. Aboriginal housing Aboriginal community housing organisations in NSW: • Permanent dwellings (2011): 4,716 • Occupied permanent dwellings (2011): 2,125 • Aboriginal community housing organizations (2011): 206 • Currently funded/actively registered Aboriginal community housing organizations (2011): 97

  39. Government interventions – federal Supply of money — interest rates Taxation and expenditure • Taxes, e.g. goods and services tax • Tax expenditures (tax concessions and exemptions become ‘foregone revenue’, e.g. exemption from capital gains tax of family home) • Direct expenditures, e.g. National Rental Affordability Scheme, National Affordable Housing Specific Purpose Payment Regulation • Legislation, e.g. trade practices law, privacy law • Subordinate legislation (‘regulations’) • Mandatory codes of practice

  40. Government interventions – state Taxation and expenditure Taxes, e.g. land tax, conveyancing transfer duty on house sales Tax expenditures, e.g. exemption from transfer duty for first homeowners Direct expenditures, e.g. Tenants Advice and Advocacy Program Regulatory interventions Environmental planning policies and instruments Tenancy protection laws Boarding house regulation

  41. Government interventions – local Taxation and expenditure Taxes, eg. rates, developer contributions for affordable housing Direct expenditures, eg. in-kind support to community-based housing providers Regulatory interventions Zoning Development controls

  42. Shelter NSWWorking for a fair and just housing system Join us! Become a member, connect with us on Facebook and subscribe to our Shelter NSW eBulletin www.shelternsw.org.au Tel: (02) 9267 5733 Paula Rix, Senior Policy Officer (Education and Outreach): paula@shelternsw.org.au

  43. Evaluation Shelter NSW would appreciate your feedback on this workshop. Please leave your completed evaluation in the box or folder marked ‘evaluations’ before you leave.

  44. Possible Solutions Australians for affordable housing, Homelessness Australia, National Shelter and ACOSS have policy goals to address the constraints discussed today: Increase Commonwealth Rent Assistance (CRA) by 30% Increase Newstart Allowance Commitment from state & territory govt’s to extend National Partnership Agreement on Homelessness beyond 2013 Adequate/ guarantee funding for homelessness programs Tax and regulatory reform

  45. Commonwealth housing assistance Commonwealth funding for housing assistance is mainly under the National Affordable Housing Agreement covers • public rental housing • State-owned and managed Aboriginal housing • Community housing • Home purchase assistance • Private rental assistance • Former Crisis Accommodation Program • Specialist homelessness services (NAHA replaced CSHA in 2009, and includes a number of housing sector reforms)

  46. Commonwealth housing and homelessness initiatives Affordability: • National Housing Supply Council – closed Nov 2013 • Housing Affordability Fund • First Home Savers Accounts Affordable Housing: • National Rental Affordability Scheme (NRAS) Homelessness: • National Partnership on Homelessness Aboriginal housing • National Partnership on Remote Indigenous Housing

  47. Commonwealth housing initiatives on affordable housing National Rental Affordability Scheme • Tax-free incentives for development of new affordable rental housing — $6,000 from Commonwealth and $2,000 from state government per dwelling, for each of 10 years • Dwellings are targeted to low and moderate-income households • Rents are set at below-market rates • Aim to add 50,000 dwellings to affordable rental housing supply

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