Federal funding for co-operative housing could be a game-changer for how we define and deliver affordable housing, according to this report. It finds that by integrating co-operative principles into policy and development frameworks, Australia could address housing challenges effectively, promote community resilience, and create more livable cities. 

The report looks at how co-operatives have been used to create large-scale affordable housing across Europe and makes recommendations for government to accelerate the growth of Australia’s nascent co-operative sector. It finds that the growth and sustainability of the sector in Australia is held back by restrictive funding options, insecure tenancy and weak recruitment models.

Findings

• 35% of Australian households are not able to own or buy their own home.
• Co-operative housing makes up just 0.5% of Australia’s total housing stock.
• Improved funding could lift co-ops’ share to 10% of all community housing.
• Co-operative housing fosters a sense of ownership and stability akin to homeownership.
• Co-operative models have better social and environmental outcomes.
• Implementing people-centred urban planning and architectural design principles is crucial for creating vibrant and inclusive communities. 
• One of the key factors inhibiting the growth of co-operative housing in Australia is a lack of awareness.

Principles for establishing an affordable rental housing sector 

1. Mandate that a percentage of build-to-rent be earmarked for rental housing co-operatives, including a target of 10 per cent rental housing cooperatives in the community housing sector. 
2. Mandate that rental housing co-operatives be developed by limited or non-profit developers.
3. Dedicate a line of credit for development of rental housing co-operatives with clear criteria with regards to tenure security, tenant participation and affordability.
4. Encourage subsidies to support new affordable rental models, through providing cheaper land.