Melbourne needs more affordable housing close to public transport and services. In the past two years, the rough sleep time in Melbourne, Inner Mongolia has increased by 74%. This may be the most obvious result of the lack of affordable housing options. For families dependent on government aid, only 1% of advertising rental properties in metropolitan areas are affordable. For low- and middle-income families, it is increasingly difficult to purchase or lease services in well-served internal and central suburbs. One month ago, one of us wrote an article in the “Dialogue” lamenting the government’s lack of leadership on this issue. In the 15 months after the election, the Victorian government did not commit to a change to Melbourne’s planned metropolitan strategy or affordable housing strategy. What is the difference in a month. It’s almost like some government leaders read this article. Since then, important policy statements have been issued weekly (or more accurately, weekends). Now that the Melbourne Project and Victorian homes have been delivered, it is fair to assess how these strategies meet Victoria’s low- and low-income housing needs. The definition of “affordable housing” in these documents remains ambiguous. They also did not specify various income groups. We take the liberty to define these groups based on the median income.
Middle-income family We define middle income as 80-120% of the median regional income – about $68,500 to $102,500 per year. In this group, first time home buyers seem to be the biggest winners in planning Melbourne and Victoria homes. The Victorian government will waive stamp duty on first-time homebuyers for homes valued at $600,000 and stamp duty on homes that exceed that price. This will allow the government to spend $851 million over four years and save $8,000 for average buyers. However, if the previous first-time home buyer incentives have taught us anything, then this may increase the cost of cheap homes without the affordability benefits. The government also provides a shared equity plan. This allows first-time homebuyers to buy their homes with the government. The program is designed to support families who are eligible for bank loans but need help to save money. Western Australia has a similar program that has helped more than 1,500 families buy homes to date.
low-income family The group’s median income is 50%-80%, and it is $42,500 to $68,500 per year. For some first-time home buyers, the above options are exciting, but for low-income families with weekly incomes between $800 and $1,300, these options are out of reach. These families are unlikely to qualify for social housing, but they are unable to afford market rents and purchase prices. The group includes many services and trade workers and their families, and they need a steady stream of new, appropriately sized and affordable market leasing options. However, neither the Victorian housing nor the Melbourne plan specifically addressed a new program to replace the current national rental affordability program that the federal government had abandoned in 2013. As stated in the affordable housing strategy, federal policies such as capital gains tax credits and negative liabilities are beneficial to investors for the first time and other homebuyers. However, state government policies may have an impact on expanding the rental housing market. In other cities with similar housing affordability crises such as Vancouver, New York and London, accelerating approvals, developing exemptions, inclusive zoning and other combinations of mechanisms will help develop new sub-market leasing units. Close to public transportation and services, these are usually offered at a specific price and are permanently affordable.
Very low income family The income of these families is less than 50% of the regional median, or less than $42,500. They may be important beneficiaries of important new social housing finance and development. The Victorian government has set up a $1 billion fund to support new social housing. The government will work with community housing providers to provide social housing through new construction and rental subsidies. It is estimated that 2,200 new homes will be added in the next five years. There is an urgent need for capital injection: Victoria has the lowest proportion of social housing stock in Australia. The state government is also increasing funding or providing new funding for domestic violence housing blitz, supporting homeless transitions and home renovations. The new $1 billion loan guarantee fund for social housing providers will be linked to the shared social housing rent register. This will make life easier for 33,000 families on the public housing waiting list. They must currently register separately with a dozen other community housing suppliers.
Planning for Melbourne has identified a policy direction to use the remaining government land to develop socially affordable housing. The launch of the housing and VicRoad’s advice to Maribyrnong Ballarat Road provides an example of how these partnerships work. The Melbourne Initiative is also committed to increasing the supply of social housing through the regeneration and intensification of existing public housing. However, the strategy does not recommend social housing as a percentage of total housing and new housing. In order to provide all families now eligible for social housing, Victoria will need 76,000 social housing units. By 2051, this number is expected to increase to 140,000 In addition, it is planned that Melbourne plans to require 1.6 million new homes in the next 30 years. That is more than 50,000 new homes a year. Among them, 5,000 people are needed to meet the needs of low-income seniors, intellectual and physical disabled people, female-headed households escaping domestic violence, and others who simply cannot compete in the private rental market
Now let these plans work Planning for homes in Melbourne and Victoria offers several directions that can benefit all Victorians, including a greater emphasis on public transport networks, more diverse housing options, 20-minute community and practical mechanisms to make more housing more Close to public transportation and services. The plan also sent a very encouraging voice, emphasizing the role of planning in helping to provide social and affordable housing. This includes legislation and definitional barriers to overcoming the effectiveness of mechanisms such as density bonuses or inclusive housing. The continued lack of formal definition of affordable housing is a fundamental flaw in Victoria’s affordable housing policy, and Victoria’s residential and Melbourne plans remain unresolved. Planning Melbourne and Victorian homes together offer some welcome directions for better and affordable housing. But the previous Victorian planning strategy, Melbourne in 2030, failed in implementation. Victoria must link infrastructure improvements to specific affordable housing targets in well-served areas. The government should continue to work on value capture and development to determine the implementation of its long-awaited affordable housing strategy.