National housing policy in Australia: are new initiatives in affordable housing sustainable?

Abstract

House price growth in Australia has outstripped income growth to the point where more than one million low and middle income households are now experiencing housing stress. Moreover, social housing provision has been gradually wound back in Australia since the 1980s in favour of a residual model based on tax concessions and subsidies, that has exacerbated the problem. However innovative policies introduced in 2009 by the Australian Government in response to the global economic crisis suggest a change indirection that might offer new, affordable social housing in a difficult economic climate. This paper critically reviews affordable housing policy in Australia and new initiatives such as the National Affordable Housing Agreements. We conclude that current initiatives remain constrained by hastily implemented policies, a 'rush to build' and a reluctance to provide an ongoing commitment to social housing.