In Melbourne, there is an urgent need for affordable housing that is closer to public transport and services. In the past two years, rough sleep in Melbourne city has increased by 74%. This may be the most obvious result of the lack of affordable housing options. For families relying on government assistance, only 1% of rental properties advertised in metropolitan areas can be affordable. For families with low-middle incomes, it is increasingly difficult to buy or rent houses in well-serviced inner and mid-urban areas. The Victorian government has not yet made any promised amendments to the Metropolitan Strategy or Affordable Housing Strategy of the Melbourne Planning Plan.
The “Melbourne Plan” and “Victorian House” have been implemented. We can conduct a preliminary assessment of how these strategies meet the housing needs of Victorians among middle-income, low-income and low-income groups. These documents are for “affordable housing” The definition of is still vague. They also do not specify various income groups. We are free to define these groups in terms of median income. We define the median income as 80-120% of the median income in the area, which is approximately A$68,500-102,500 per year. In this group, first-time home buyers seem to be the biggest winners of the “Melbourne Project” and “Victoria House”. The Victorian government will waive stamp duty for first-time homebuyers, with a tax exemption of not more than 600,000 Canadian dollars. For houses whose prices are higher than this price, stamp duty will be reduced. This will cost the government US$851 million over four years and save the average buyer US$8,000.
However, if previous first-home buyer incentives have taught us anything, then this is likely to exaggerate the cost of cheap housing without bringing in affordable benefits. The government also provides a shared equity plan. This allows first-time home buyers to purchase homes jointly with the government. The program is designed to support families who are eligible for bank loans but need help saving savings. Western Australia also has a similar program, which has helped more than 1,500 families buy houses so far.
Middle-income family
We define the median income as 80-120% of the median income in the area, which is approximately A$68,500-102,500 per year. In this group, first-time home buyers seem to be the biggest winners of the “Melbourne Project” and “Victoria House”.
The Victorian government will waive stamp duty for first-time homebuyers, with a tax exemption of not more than 600,000 Canadian dollars. For houses whose prices are higher than this price, stamp duty will be reduced. This will cost the government US$851 million over four years and save the average buyer US$8,000.
However, if previous first-home buyer incentives have taught us anything, then this is likely to exaggerate the cost of cheap housing without bringing in affordable benefits.
The government also provides a shared equity plan. This allows first-time home buyers to purchase homes jointly with the government. The program is designed to support families who are eligible for bank loans but need help saving savings. Western Australia also has a similar program, which has helped more than 1,500 families buy houses so far.
low-income family
The income of this group is 50%-80% of the regional median income, which is $42,500-$68,500 per year.
Although the above options are exciting for some first-time homebuyers, they are out of reach for low-income families earning between $800 and $1,300 a week. These families are unlikely to be eligible for social housing, but they cannot afford market rents and purchase prices. This group includes many service and trade workers and their families, who need a steady stream of new market leasing options that are appropriate in scale and at reasonable prices. However, neither the Victorian Housing Association nor the Melbourne Plan specifically discussed a new plan to replace the National Rent Affordability Plan that the current federal government abandoned in 2013.
As the affordable housing strategy says, this is absolutely true. Federal policies such as exemptions from capital gains tax and negative equity liabilities are more beneficial to investors than first-time home buyers and other residential home buyers. However, state government policies may have an impact on the expansion of the rental housing market.
In Vancouver, New York and London and other cities with similar housing affordability crises, the combination of expedited approvals, reduced development taxes, inclusive zoning and other mechanisms has helped develop new submarket rental units. These facilities are located near public transportation and services, are usually provided at a specific price, and are kept forever.
Very low-income families
The income of these households is less than 50% of the median in the area, or less than $42,500. They may be the main beneficiaries of large amounts of new social housing funding 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 buildings and rent subsidies. It is estimated that as many as 2,200 new housing units will be delivered in the next five years.
The state government has also increased funding or provided new funding for the domestic violence housing blitz to support the transition of the homeless and home renovations. The new $1 billion loan guarantee fund established for social housing providers will be linked to the shared social housing rent register. This will make life easier for the 33,000 families on the waiting list for public housing. They currently have to register separately with up to 12 other community housing providers.
The Melbourne Plan has identified a policy direction to use the remaining government land to develop social and economically affordable housing. Launch Housing and VicRoad’s proposal on Ballarat Road in Maribyrnong provides an example of how these partnerships work. The Melbourne Plan is also committed to increasing the supply of social housing by rebuilding and strengthening existing public housing spaces.
However, this strategy does not recommend considering the level of social housing as part of the total amount of existing housing and new housing. In order to provide housing to all families who are now eligible for social housing, Victoria will need to add 76,000 social housing units. By 2051, this number is expected to increase to 140,000. In addition, the Melbourne Planning Department estimates that 1.6 million new houses will be needed in the next 30 years. There are more than 50,000 new houses every year. Among them, 5,000 people will be needed to meet the needs of low-income elderly, people with intellectual and physical disabilities, female-headed households who avoid domestic violence, and others who simply cannot compete in the private rental market.
These plans need to be followed up
Provides some directions for the Melburnians to plan Melbourne and nursing homes that may benefit all Victorians. The welcome aspects include: greater emphasis on public transportation networks, diversity of housing options, 20-minute neighborhoods, and practical mechanisms that bring more housing closer to public transportation and services.
These plans also give out encouraging voices about strengthening the role of the plans in helping to deliver society and affordable housing. This includes overcoming legislative and definitional obstacles, such as the effectiveness of mechanisms such as density bonuses or inclusive housing. The continuing lack of a formal definition of affordable housing is a fundamental flaw in Victoria’s affordable housing policy. Victoria House and Plan Melbourne have not yet been resolved.
The Melbourne plan and Victorian homes together provide some popular directions to provide better-located and affordable housing. But the previous Victorian planning strategy, Melbourne 2030, failed in its implementation. Victoria must link infrastructure improvements to specific affordable housing goals in well-served areas. The government should also continue to carry out work on value acquisition and development contributions to clearly implement its long-awaited strategy for affordable housing.
