This report presents the findings of a research project commissioned by CHIA NSW and Homelessness NSW to provide estimates of the social and affordable housing need for Australia by sub-region and the likely costs to government of delivering housing to meet these needs over the period to 2036.

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.

A tenfold increase in building is needed to overcome the current social housing shortfall and cover projected growth in need. It can be done, and direct public investment is the cheapest way.

This study examined the range of strategies and initiatives governments have used to leverage affordable housing supply across the continuum of housing needs (i.e. from social housing to affordable rental and home ownership) in a constrained funding and increasingly market-driven context, across a range of different jurisdictions and markets.

There is growing interest in the potential for inclusionary planning approaches to help deliver affordable housing supply in Australian cities and regions. Within wider government strategies for affordable housing supply, inclusionary planning approaches can play a role in requiring or incentivising dwelling units, land, or financial contributions towards affordable housing projects.