What is affordable housing?

    Affordable housing is housing that is appropriate for the needs of a range of very low to moderate income households and priced so that these households are also able to meet other basic living costs such as food, clothing, transport, medical care and education. Generally, housing is considered affordable if it costs less than 30% of gross household income. This includes affordable homes for purchase (including higher density and more diverse housing); affordable private rental; and social housing. 

    Very low to moderate incomes are defined by the Victorian Government as those with incomes up to $64,020 for single adults and $134,450 for families living in the Greater Melbourne area.

    Why is affordable housing important?

    Access to housing that is safe and secure is a fundamental human right. It is the foundation that enables each and every person to live well and access other basic rights that we are all equally entitled.

    There is a clear relationship between housing and wellbeing.  Access to appropriate housing has a multitude of broader benefits, from better health and wellbeing outcomes to improved learning outcomes for children attending school.  It also delivers significant economic benefits including greater competitiveness through more efficient local labour markets.

    In Australia's major cities, where housing costs have risen significantly, relative to incomes, the share of 'market affordable' housing is declining, hence the need for policies and interventions to increase the supply of other types of affordable housing. 

    SGS Economics have mapped the long-term financial impacts of not addressing this decline in affordable housing and found that ‘the national average benefit-cost ratio for Australia in providing adequate social and affordable housing infrastructure is 2:1. In other words, for every $1 invested to induce delivery of public, social and affordable housing, the Australian community saves $2 in future costs.’  The reverse of this is also true – for every dollar not invested in this area it will cost $2 to address.

    What housing need exists in the community?

    According to the Australian Bureau of Statistics 2016 Census, more than 7,000 households in the lowest 40% of household incomes in the City of Whitehorse are suffering from housing stress, which means they are spending 30 per cent or more of their income on rent or mortgage repayments.

    In September 2022 only 2.1% of available lettings in Whitehorse were affordable for those receiving Centrelink incomes and not spending more than 30% of gross income on rent.

    Our research shows there is an urgent need for 2,570 additional social housing dwellings and without intervention this need is forecast to increase to 3,740 social housing dwellings by 2041.

    Council is committed to helping address this need – everyone deserves access to a safe and secure home.

    How can Council support affordable housing?

    The Victorian Government is primarily responsible for the delivery of housing and homelessness services. 

    Council can also support and contribute to social and affordable housing in a number of ways, including through its role as a planning authority, partnering with and facilitating the work of other stakeholders, and advocating to other levels of government.

    What is mandatory inclusionary zoning?

    Mandatory inclusionary zoning is a State Government planning tool which makes it compulsory for new developments to include a proportion of affordable housing properties in the new build. This can include public and community housing, affordable homes for purchase and affordable private rental.

    In the case of affordable housing, it could be argued that a minimum level of this housing is required in all communities to ensure social sustainability.  A key benefit of an inclusionary zoning approach is that it would provide certainty for developers, land owners and the community regarding affordable housing contributions.

    The current Victorian planning framework does not provide a planning mechanism for councils to mandate developers to provide affordable housing as an inclusionary requirement.  Whitehorse City Council is already advocating for this to change through the Eastern Affordable Housing Alliance and the Regional Local Government Homelessness and Social Housing Charter Group.

    While it is not possible to require developers to provide affordable housing, it is possible to encourage developers to voluntarily make a contribution towards affordable housing.