Transformative Models for Social and Affordable Housing
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By Alexi Freeman
The need for more social, sustainable and affordable housing solutions has never been more critical as the era of housing scarcity, poor renter protections and rising living costs continues to bite hard for many.
Clearly, there is urgency for new and collaborative approaches from governing bodies, the private sector and the design community.
Australia, like many nations, grapples with a housing paradox. In our case, over a million unoccupied homes coexist with a homeless population of 122,000.
The current shortage of 600,000 social and affordable housing units – projected to rise to over 1 million within 15 years – highlights the urgency for action.
To truly understand the transformative potential of social and affordable housing models, it is important to understand the underlying issues plaguing the Australian housing market and identify potential barriers to adoption.
But first, what is social housing? This encompasses both short and long-term rental options managed by governmental or not-for-profit agencies, serving as a crucial resource for individuals and families facing housing instability.
Meanwhile, affordable housing – according to the national housing accord – refers to rental accommodations offered at below-market rates to eligible tenants, aiming to alleviate financial burdens and provide stability in an increasingly challenging housing landscape.
One of these challenges is the financialisation of the property market – driven by policies like negative gearing and capital gains tax concessions which have exacerbated housing affordability challenges.
Negative gearing allows property investors to offset the costs of owning an investment property against their taxable income, while capital gains tax concessions reduce the tax payable on any capital gains made from the sale of an investment property.
These policies have incentivised property investment for speculative purposes, driving up housing prices and impacting affordability issues for potential homeowners and renters alike.
Furthermore, the meteoric rise of temporary-stay phenomena – such as Airbnb and other services – has further decreased the availability of long-term rental properties, particularly in popular tourist destinations and metropolitan areas.
Properties that traditionally would be available for long-term rental are often converted into short-term accommodations, reducing the housing supply for permanent residents, contributing to affordability pressures and perpetuating the cycle of scarcity.
Despite these challenges, initiatives around the world such as the Betondorp in Amsterdam – a garden suburb featuring 900 houses alongside shops, schools, a bathhouse, a public library and community building – offer valuable insights into successful community-focused design.
Built in the 1920s, Betondorp features intergenerational social houses alongside essential amenities, demonstrating how collaboration between NGOs and designers can lead to sustainable housing models.
In the Netherlands, rent control by NGOs stabilises affordability for the majority of housing. However, Amsterdam’s housing demand still outstrips supply, necessitating innovative solutions like preventing homes from becoming revenue models and building 7500 new affordable homes annually.
These Dutch models underscore the need for comprehensive policy reform in Australia to better support social and affordable housing initiatives.
Elsewhere, projects like Queensbridge House in New York further exemplify transformative approaches.
Queensbridge’s integration of public spaces fosters community and well-being. Owned by the New York City Housing Authority since 1939, it sets precedents for affordability solutions.
Queensbridge is the largest North American public housing project, encompassing 26 buildings with 3000 apartments for 11,000 residents.
Notably, it allocates only 25% of its 62.5-acre footprint to residential buildings, prioritising the communal importance of living green spaces in its design.
Meanwhile, in Melbourne, Nightingale Housing’s transparent pricing and commitment to sustainability helped them achieve NGO status in 2021, making them an outlier in the profit-driven property sector.
They have delivered hundreds of homes across six states, demonstrating their ongoing commitment to affordable homes over profitable commodities.
The success of Nightingale Housing lies in its triple-bottom-line model, which emphasises social, financial and environmental sustainability.
By selling homes at cost and elevating community needs, Nightingale has become a leader in transformative architecture, paving the way for a more equitable future.
Similarly, Assemble’s focus on sustainable, well-designed homes and neighbourhoods is reshaping the Australian housing landscape.
By blending for-profit and not-for-profit models – such as their 20% affordable and 20% social housing model for their Kensington project – Assemble is addressing the demand for affordable housing while promoting financial flexibility and mobility.
By integrating principles of community engagement, sustainability and affordability into their projects, designers and architects are reshaping the housing landscape and prioritising the needs of residents over profits.
Government initiatives include Homes Victoria’s 10-year social and affordable housing strategy, with a vision for “all Victorians to have access to safe, affordable, and appropriate housing in the right locations.”
The Victorian Social Housing Growth Fund – also a Homes Victoria initiative – has committed to supporting community housing providers through the $5.3 billion Big Housing Build.
Additionally, the National Housing Accord – which legislated reducing rent increases to once per annum – demonstrates a commitment to addressing housing challenges.
To address these challenges, transformative housing models like those in Amsterdam and New York could provide valuable insights and potential solutions.
For example, NGOs in Amsterdam have implemented rent control measures to help stabilise housing affordability for a significant portion of their population.
Similarly, initiatives like Nightingale Housing in Australia emphasise transparency, affordability and community well-being in their development projects, offering a potential blueprint for addressing housing affordability challenges in the Australian context.
However, successfully implementing such transformative housing models will require comprehensive policy reforms to address underlying market pressures and create an enabling environment for sustainable and affordable housing.
Such reforms could include changes to taxation policies to discourage speculative property investment, increased regulation of short-term rental platforms to ensure a sufficient supply of long-term rental properties and more targeted investment in social and affordable housing initiatives.
Additionally, there is a need for greater collaboration between government, NGOs and the private sector to leverage resources and expertise in addressing housing affordability challenges.
Public-private partnerships, like those developed through Assemble’s build-to-rent projects, could provide a viable pathway for delivering affordable housing at scale while ensuring long-term financial sustainability.
The global movement towards social and affordable housing offers hope in an increasingly challenging housing landscape.
But while transformative housing models offer promising solutions to the complex challenges of housing affordability and sustainability, their successful implementation in Australia requires careful consideration of the specific challenges and opportunities within the Australian context.
By learning from international examples and working collaboratively across sectors, Australia can co-create a more equitable and sustainable housing system for all its residents, thereby ensuring that housing becomes a fundamental right for everyone.
Alexi Freeman is an interdisciplinary artist with a diverse creative practice ranging from growing biomaterials with microorganisms to designing costumes for The Australian Ballet. Alexi is based in Naarm. Instagram @alexifreeman.
