Policy options for stimulating private sector investment in affordable housing

Real estate Rental housing Affordable housing Tenancy support Australia

This project is about operationalising the outcomes of a previous commercially focused AHURI project, “Policy Options for Stimulating Private Sector Investment in Affordable Housing Across Australia” which is being prepared for the Affordable Housing National Research Consortium. The project is concerned with providing a blueprint and supporting additional financial analysis for the implementation of the outcomes (i.e. policy proposals for new private funding models) of Stages 1 to 4 of the above-mentioned Consortium project. The three Consortium project reports clearly establish that: a) housing affordability problems have intensified significantly in Australia over the past 15 years; b) the bottom end of the rental housing market is failing abjectly in meeting rising demand; c) existing housing subsidies provided through both the CSHA and the social security system (Rent Assistance), although making a vital continuing contribution to housing affordability, are inadequate (at current and prospective overall volumes of support) by themselves to deal with the worsening situation and that:– d) the only feasible alternative is to attract and leverage a large volume of private investment (especially from the institutions) into affordable housing provision to supplement provision under existing patterns of investment and subsidy flows. If $3 or $4 of private investment can be leveraged for every $1 of extra subsidy, then the supply of affordable housing will increase substantially by comparison to directly contributing that $1 to Rent assistance (RA) or public housing through the CSHA. 

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