Modern Australian
The Times

Public housing 'renewal' likely to drive shift to private renters, not owners, in Sydney

  • Written by Dallas Rogers, Associate Dean, School of Architecture, Design and Planning, University of Sydney

A target of 70% private and 30% public dwellings is an accepted standard for public housing renewal projects in several Australian states. This level of private ownership is said to be necessary to counter stigma and the supposed demotivating impacts of concentrated disadvantage. When we looked at the impact of applying this model to the planned Waterloo redevelopment in inner Sydney, the demographic projections were revealing.

Read more: Why the focus of stimulus plans has to be construction that puts social housing first

Our analysis shows the project would reduce the suburb’s proportion of social housing dwellings from 30% to about 17%. About 30% of households in the suburb would be owner-occupiers. Private renters might rise to more than 50% of households.

Why set social mix targets?

Social mix is often proposed as an antidote to a range of presumed problems associated with public housing estates. With the need for a social housing stimulus package receiving attention, and the Victorian government announcing a A$500 million program, it’s timely to revisit the mix of tenancies in estate redevelopments.

Read more: Class divide defies social mixing and keeps public housing stigma alive

State housing authorities favour a mix of public and private residential tenures when they redevelop large public housing estates. Authorities can then sell the majority of new dwellings to private owners and investors.

As Kate Shaw, Janet McCalman and Deborah Warr have explained in The Conversation, the strategy doesn’t always work as promised. Drawing on extensive empirical research into mixed-tenure renewal neighbourhoods, the evidence shows simple mathematical “one size fits all” targets do not work. Decisions on the residential mix need to be sensitive to local settings and needs.

Nonetheless, an orthodoxy has emerged among some housing authorities that social housing tenants should make up 30% of households while 70% should be sold to owner-occupiers and investors.

Read more: Social mix in housing? One size doesn't fit all, as new projects show

The case of Waterloo

In Waterloo, limitations of the fixed-ratio approach relate to the likely composition of the post-renewal resident population.

The Waterloo estate site now contains about 1,900 public housing units. The renewal plan proposes retaining this number in the context of a three-fold increase in dwellings with a 70:30 private-public tenure mix. This will result in a total of about 6,500 dwellings.

At the suburb or neighbourhood level, Waterloo had 6,151 dwellings in 2016. As the table below shows, almost exactly 30% of these were let to social housing tenants.

Public housing 'renewal' likely to drive shift to private renters, not owners, in Sydney Data: ABS Census 2016, Author provided The table also shows the large variation in tenure mix across five Sydney suburbs and the Greater Sydney area. Some 44% of all dwelling stock in Waterloo was already rented privately. That’s almost 50% more than the Sydney-wide average of just under 30%. Importantly, 63% of private dwellings in Waterloo are privately rented – double the Greater Sydney proportion. Located close to three universities and the CBD, Waterloo is dominated by investor-owned rental housing. Future occupation is likely to follow this pattern. Read more: We still live here: public housing tenants fight for their place in the city More like 17% social housing State housing authorities measure tenure mix within public housing estates. But the Australian Housing and Urban Research Institute recommends measuring tenure mix at the neighbourhood scale. Adding 4,500 new private households, while maintaining current social housing numbers, will reduce the proportion of social housing in the suburb of Waterloo to about 17%. Projecting the current rate of renters in private dwellings onto the proposed 70:30 renewal mix might be expected to result in 63% of new private dwellings being privately rented. The suburb would then comprise 52% private renters. Less than one-third of residents would be owner-occupiers. The chart below shows how applying the 70:30 target to redeveloping the public housing estate could actually reduce tenure diversity for Waterloo. Public housing 'renewal' likely to drive shift to private renters, not owners, in Sydney Data: ABS Census 2016, Author provided Read more: Voices of residents missing in a time of crisis for public housing Many private renters struggle too The need for more social and affordable housing in well-serviced, inner-urban areas is well recognised. Getting the residential tenure mix right through renewal is key. In the only full-length book on social mix in Australia, Kathy Arthurson notes social disadvantage occurs in both public and private rental housing. She writes: The omission of private rental from the social mix literature is problematic, as in Australia and elsewhere most poor renters are in private rental and not in public housing. Read more: Private renters are doing it tough in outer suburbs of Sydney and Melbourne A key element of the case for limiting social housing to 30% in redevelopment projects is the belief that any more would scare off potential private buyers and reduce developer returns. However, an RMIT evaluation of the Victorian Public Housing Renewal Program showed the presence of social housing had little effect on sales of private apartments in renewed inner-city public housing estates. Another evaluation of the Kensington renewal project in Carlton, Victoria, found strong investor sales but fewer owner-occupiers than anticipated. Key takeaways Recent research in Melbourne and Sydney suggests the supposed benefits of social mix are based on owner-occupiers, not more transient private renters. It also shows social mix renewals that apply a simplistic 70:30 target within a narrowly defined boundary around an “estate” risk seriously undervaluing large public housing assets.

Authors: Dallas Rogers, Associate Dean, School of Architecture, Design and Planning, University of Sydney

Read more https://theconversation.com/public-housing-renewal-likely-to-drive-shift-to-private-renters-not-owners-in-sydney-133352

Chatswood Tutoring And Its Role In Academic Achievement

Academic success often requires more than classroom attendance alone. Students face increasing expectations as they progress through school, particu...

Why Laser Hair Removal Treatments Continue Growing In Popularity

Managing unwanted hair can become time-consuming and frustrating for many people, especially when shaving, waxing, and other temporary methods requi...

Choosing the Right Devices for a Flexible Workplace

For IT leaders managing large fleets, the device layer is where workforce productivity and security policy meet. The shift towards flexible and hybrid...

How Business Advisory Services Help Companies Achieve Sustainable Growth

Every business owner aims to build a profitable and sustainable organisation. While dedication, innovation, and hard work are important, achieving l...

Why Body Contouring Has Become A Popular Cosmetic Treatment

Many people maintain healthy lifestyles through regular exercise and balanced eating habits but still struggle with stubborn areas of fat that are d...

How to Choose the Right POS Hardware for Your Business in Australia

A lot of Australian business owners spend weeks researching POS software but buy hardware almost as an afterthought. That's a mistake. The wrong har...

Why Material Handling Hose Is Critical for Industrial Efficiency

A high-performance material handling hose is an essential component in industries that transport abrasive, dry, or bulk materials on a daily basis...

How to Choose the Right Lawyer in Melbourne for Your Situation

Choosing legal support can feel difficult, especially when the stakes are personal or business-related. The right lawyer in Melbourne should underst...

Hoteliers Look to Clever Value Adds to Increase Revenue

The Australian hospitality industry is still in recovery mode after a notoriously rough patch in recent years. While there has been a post-COVID tra...

Moving to Queensland? Here’s How to Prep Your Car for the Big Move North

There’s no sign of the northern migration slowing down, with thousands of southerners fleeing from chaotic lifestyles and cooler climates for a brig...

Diesel Shortage to Impact Trades and Contractors

Strait of Hormuz blockage affecting all major parts of trades and construction Trades and construction across residential, commercial and industria...

Why Holiday Home Owners Turn to Rental Management Agents

The Allure — and the Reality — of Renting Out Your Property Owning a holiday home is a dream for many Australians. Whether it's a beachside sha...

Why Finding Reliable Doctors In Bundoora Is Important For Long-Term Health

Access to quality healthcare plays an important role in maintaining overall wellbeing and managing health concerns early. Trusted Doctors in Bundoor...

Understanding the Different Types of Car Services: Minor vs Major

When it comes to car maintenance, one of the most important things every vehicle owner should understand is the difference between a minor and a maj...

How Superannuation and TPD Insurance Work Together

Superannuation is an essential part of financial planning in Australia. It is designed to provide individuals with income during retirement, helping...

Tiny Towns funding granted for Mt Hotham and Mt Buller upgrades

Alpine Resorts Victoria (ARV) has welcomed funding support from the Victorian Government’s  Tiny Towns Fund, with both Mt Hotham and Mt Buller se...

Locksmith Services: Why Professional Security Solutions Matter More Than Ever

Security is a critical concern for homeowners, businesses, and vehicle owners alike. Whether it involves protecting a property, replacing damaged lo...

Why Tooth Fillings Are Important For Protecting Damaged Teeth

Cavities and minor tooth damage are common dental problems that can worsen if left untreated. Professional tooth fillings help restore damaged teeth, ...