04.03.2021Momentum on investment in social and affordable housing – essential on the Road to Recovery

Tackling Victoria’s social and affordable housing crisis has become more important than ever.

Increasingly, there is evidence that affordable housing availability contributes important economic and productivity outcomes. Supporting key workers, providing security of tenure and reduced commute times, are just some of the important drivers of productivity and economic benefits, that come from investment in affordable housing.

That is why Committee for Melbourne (the Committee) is pleased the Victorian Government is now developing a 10-yr social and affordable housing strategy. This follows from the Government’s commitment in the State Budget 2020-21 to the Big Housing Build, with $6 billion to be injected into the construction of around 12,000 social and affordable homes. The Committee welcomes the Big Build announcement as a good first step but highlights that more is needed to accommodate vulnerable individuals and key workers.

The Committee has been advocating for a range of social and affordable housing solutions, that would enable the delivery of affordable housing at scale. Investment in housing across a spectrum of social need, will require more than just direct investment by governments.

In the Committee’s submission to the recent Infrastructure Victoria 30-yr Draft Strategy, the Committee noted that the problem of affordable housing is a community one. It requires a range of solutions that would avoid placing a significant burden for delivery of affordable housing on one sector of the economy (eg the private development sector or government). An affordable housing levy, with appropriate transparency and independent governance and accountability frameworks, could be a possible policy consideration.

The Committee would welcome member input into it’s submission to the Victorian Government’s 10-yr social and affordable housing strategy – due on 9 April. Please contact Leanne Edwards, ledwards@melbourne.org.au for further information.

The Committee’s submission to Infrastructure Victoria’s Draft 30-yr Strategy can be viewed here