This research investigates models for engaging private sector investors and developers in financing or delivering social and affordable housing, across different market segments and tenures in Australia and internationally. It also identifies key existing and potential players, and financial, regulatory or development barriers to wider participation.

This research modelled five alternative pathways to funding social housing and found the ‘capital grant’ model, supplemented by efficient financing, provides the most cost effective model for Australia. The research also established the current and future unmet need for social housing in different parts of Australia.

As home ownership rates decline across all age cohorts, the suboptimal quantity, allocation, and security of housing opportunities in the rental market has received increasing policy attention. To date, fiscal strategies for attracting investment towards rental housing have had limited success, especially in attracting institutional investors to this sector.