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Housing Affordability Literature Review and Affordable Housing Program Audit
Urban Research Centre University of Western Sydney

July 2008

Acknowledgements
This report was prepared with the assistance of Elena Sliogeris, Louise Crabtree, Peter Phibbs and Kate Johnston. Professor Phillip O’Neill Director Urban Research Centre

List of Acronyms
AMI BCLT CERC CEHL CHT CLT CSHA HAF HDFC HFHA LEHC LIHTC NRAS SHA ULDA UDIA Area Median Income Burlington Community Land Trust Common Equity Rental Cooperative Common Equity Housing Limited Champlain Housing Trust Community Land Trust Commonwealth-State Housing Agreement Housing Affordability Fund Housing Development Funding Corporation Habitat for Humanity Australia Limited Equity Housing Cooperative Low Income Housing Tax Credit National Rental Affordability Scheme State Housing Authority Urban Land Development Authority Urban Development Institute of Australia

Contents
Executive Summary Structure of the literature review 1 4

1.

Definitional Issues

5
5
6 7

How has housing affordability been defined?
What are the problems with these definitions? Can we come to an agreed definition for affordable housing?

2.

Nature and Extent of the Problem

9
9 13

Where is the problem manifest? What groups are affected?

How is the housing affordability problem influencing householders’ housing choices and behaviours? 14 What is the recent history of the issue? 15

What changes in housing affordability can be identified and what has been done elsewhere? 16

3.

Assessment of policy and programs

17
17
17 18 19
21 21 22

International review
England Ireland United States
Deed restrictions Limited-equity housing cooperatives Community land trusts

Canada

23

Australian Review
South Australia Australian Capital Territory

24
25 26

Queensland NSW
Planning mechanisms Forest Glade Habitat for Humanity Australia Cooperative Housing

28 29
29 30 30 31

Victoria
Ownhome



References: ACT Affordable Housing Taskforce (2002) Affordable Housing in the Australian Capital Territory, ACT Affordable Housing Taskforce. ACT Planning and Land Authority (2008) 2.5 Concept Plan McGregor West. AMP and NATSEM (2008) Wherever I lay my debt, that’s my home. Trends in housing affordability and housing stress, 1995-96 to 2005-06, AMP NATSEM Income and Wealth Report. Australian Government (2008a) Making housing affordable again. http://www.facs.gov.au/internet/facsinternet.nsf/vIA/housing_affordable/$File/making_h ousing_affordable_again.pdf Australian Government (2008b) National Rental Affordability Scheme technical discussion paper, released May 2008. Australian Government (2008c) Housing Affordability Fund: Consultation Paper. Department of Families, Housing, Community Services and Indigenous Affairs. Australian Institute of Health and Welfare (2007a) Housing Assistance in Australia, Cat. No. HOU173. Canberra, AIHW. Australian Institute of Health and Welfare (2007b) Home purchase assistance 2005-06: Commonwealth State Housing Agreement national data reports. Australian Institute of Health and Welfare (2007c) Community housing 2006-07: Commonwealth State Housing Agreement national data reports, Housing assistance development series, Cat. No. HOU 172, Canberra, AIHW. Bankwest (2008) Key Worker Housing Affordability Report. Bankwest Financial Indicator Series. Battellino R (2008) Background Notes for Opening Remarks to Senate Select Committee on Housing Affordability in Australia, Melbourne, 24 April 2008. Beer A, Kearins B and Pieters H (2007) Housing affordability and planning in Australia: the challenge of policy under neo-liberalism, Housing Studies, 22(1),11-24. Bramley G (1990) Bridging the Affordability Gap: Report of Research on Access to a Range of Housing Options, BEC, Birmingham. Burke T, Pinnegar S, Phibbs P, Neske C, Gabriel M, Ralston L and Ruming K (2007) Experiencing the housing affordability problem: blocked aspirations, trade-offs and financial hardships, National Research Venture 3: Housing affordability for lower income Australians, Research Paper No. 9, Australian Housing and Urban Research Institute. Community Finance Solutions (2005) Community Land Trusts - capturing land value for communities. http://www.communitylandtrust.org.uk/. Crook T and Whitehead C (2002) Social housing and planning gain: is this an appropriate way of providing affordable housing? Environment and Planning, 34(7), 1259-1279. Davis J (2006) Shared Equity Homeownership: the Changing Landscape of Resale-Restricted, Owner-Occupied Housing. National Housing Institute. Montclair, New Jersey. Davis J and Demetrowitz A (2003) Permanently Affordable Homeownership: Does the Community Land Trust 40 Deliver on its Promises? Burlington Community Land Trust, Burlington, Vermont. Davis J and Jacobus R (2008) The City-CLT Partnership: Municipal Support for Community Land Trusts. Lincoln Institute of Land Policy, Cambridge, Massachusetts. Department for Families and Communities (South Australia) (2006) Local Government Affordable Housing Resource Kit, Government of South Australia Disney J (2007) Affordable Housing In Australia - Some Key Problems and Priorities for Action National Forum on Affordable Housing, Australian Housing and Urban Research Institute, Melbourne. Dixon J and Dupuis A (2003) Urban intensification in Auckland, New Zealand: a challenge for new urbanism, Housing Studies 18(3), 353-68. FaHCSIA (2008) Housing Affordability Fund - consultation paper, Commonwealth of Australia. Gabriel M, Jacobs K, Arthurson K, Burke T and Yates J (2005) Conceptualising and measuring the housing affordability problem, National Research Venture 3: Housing affordability for lower income Australians Research Paper No. 1, Australian Housing and Urban Research Institute. Gleeson B, Darbas T, Johnson L and Lawson S (2003) What is a metropolitan strategy?, A research paper prepared for Planning NSW by the Urban Policy Program, Griffith University. Gurran N (2003) Housing locally: positioning Australian local government housing for a new century, Urban Policy and Research, 21(4), 393-412. Gurran N, Milligan V, Baker D and Bugg L (2007) International Practice in Planning for Affordable Housing: Lessons for Australia. Positioning Paper, Australian Housing and Urban Research Institute, Sydney. Hall J (2004) Public housing: residualisation or reinvigoration? Housing Works - Parity, 2(2), 13-16. http://www.sisr.net/events/docs/04tenyear_future.pdf Hamnett S and Freestone R. (2000) The Australian Metropolis: a Planning History, Allen and Unwin: St Leonards. HNZC (2004) Building the Future: Towards a New Zealand Housing Strategy, Housing New Zealand Corporation, Wellington. Housing, Local Government and Planning Ministers (2005) Framework for National Action on Affordable Housing, 4 August 2005, Australia. Lawson J and Milligan V (2007) International Trends in Housing and Policy Responses. Final Report. AHURI, Sydney. Lerman B (2006) Mandatory inclusionary zoning – the answer to the affordable housing problem, Boston College Environmental Affairs Law Review, 33(2), 383-416. Milligan V, Phibbs P, Fagan K and Gurran N (2004) A Practical Framework for Expanding Affordable Housing Services in Australia: Learning from Experience, Final Report No. 65, Australian Housing and Urban Research Institute. Milligan V, Phibbs P, Gurran N and Fagan K (2007) Approaches to Evaluation of Affordable Housing Initiatives in Australia, National Research Venture 3: Housing affordability for lower income Australians Research Paper No. 7, Australian Housing and Urban Research Institute. Monk S, Crook T, Lister D, Rowley S, Short C and Whitehead C (2005) Land and Finance for Affordable Housing: The Complementary Roles of Social Housing Grant and the Provision of Affordable 41 Housing Through The Planning System. Joseph Rowntree Foundation, UK National Housing Strategy (1991) Australian Housing: the Demographic, Economic and Social Environment, Issues Paper No. 1, AGPS, Canberra. Norris M and Shiels P (2007) Housing affordability in the Republic of Ireland: is planning part of the problem or part of the solution?, Housing Studies, 22(1), 45-62. NSW Urban Taskforce (2006) Affordable Housing: Issues With Existing Planning Mechanisms At State And Local Government Level And Options To Stimulate Private Investment A Report to the NSW Government. NSW Urban Taskforce, Sydney. Oxley M (2006) The gain from the planning-gain supplement: a consideration of the proposal for a new tax to boost housing supply in the UK. European Journal of Housing Policy, 6(1), 101-113. Paris C (2007) International perspectives on planning and affordable housing, Housing Studies, 22(1), 1-9. Productivity Commission (2004) First Home Ownership: Productivity Commission Inquiry Report. http://www.pc.gov.au/__data/assets/pdf_file/0016/56302/housing.pdf Queensland Government, Department of Infrastructure (2007) Queensland Housing Affordability Strategy. Queensland Government Department of Infrastructure, Brisbane. http://www.affordablehome.com.au/files/pdf/Queensland_Housing_Affordability%20Stra tegy%20document%2007.07.pdf Richards A (2008) Some observations on the cost of housing in Australia, address to 2008 Economic and Social Outlook Conference The Melbourne Institute, Melbourne, 27 March 2008, http://www.rba.gov.au/Speeches/2008/sp_so_270308.html Robertson R (2006) Thinking about the big drop in Australian housing affordability’, Macquarie Research, 22 December. Saegert S and Benitez L (2005) Limited equity housing cooperatives: defining a niche in the lowincome housing market, Journal of Planning Literature, 19, 427-439. Select Committee on Housing Affordability in Australia (2008) A Good House is Hard to Find: Housing Affordability in Australia, The Senate, Commonwealth of Australia. SGS Economics and Planning (2007) Housing Affordability: What are the Drivers and How do We Fix the Problem?, Melbourne Quarterly Seminar Series. Stretton H (1989) Ideas for Australian Cities, Transit Australia: Sydney. Urban Development Institute of Australia (2007) An Industry Report into Affordable Home Ownership in Australia, August. Wilkinson J (2005) Affordable Housing in NSW: Past to Present, NSW Parliamentary Library Research Service. Wright-Howie D (2004) Public housing in Australia is in decline: the facts speak for themselves, Housing Works - Parity, 2(2), 8-9. http://www.sisr.net/events/docs/04tenyear_future.pdf Yates J, Berry M, Burke T, Jacobs K, Milligan V and Randolph B (2004) Housing affordability for lowerincome Australians: Plan, National Research Venture 3: Housing Affordability for Lower Income Australians Research Paper Plan, Australian Housing and Urban Research Institute. Yates J (2007a) Affordability and access to home ownership: past, present and future?, AHURI 42 Research reports, no. 10, November. Yates J (2007b) Housing affordability and financial stress, National Research Venture 3: Housing Affordability for Lower Income Australians Research Paper No. 6, Australian Housing and Urban Research Institute. Yates J (2007c) The Polarisation of Housing Affordability, National Research Venture 3: Housing Affordability for Lower Income Australians Research Paper No. 8, Australian Housing and Urban Research Institute. Yates J and Gabriel M (2006) Housing Affordability in Australia, National Research Venture 3: Housing Affordability for Lower Income Australians Research Paper 3, Australian Housing and Urban Research Institute. Yates J, Wulff M and Reynold M (2004) Changes in the Supply of and Need for Low Rent Dwellings in the Private Rental Market. Final Report No. 61, Australian Housing and Urban Research Institute. Yates J, Randolph B and Holloway D (2006) Housing Affordability, Occupation and Location in Australian Cities and Regions. Final Report No. 91, Australian Housing and Urban Research Institute. 43

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