Dwellings rented from a State or Territory housing authority as a percentage of all dwellings in Australia divided geographically by statistical local area, at the 2011 census
Public housing in Australia is one part of social housing and the other is community housing.[1]Public housing is provided by departments of state governments. Australian public housing (often historically referred to as "Housing Commission") operates within the framework of the Commonwealth-State Housing Agreement, by which funding for public and community housing is provided by both federal and state governments.[2] According to the 2006 census, Australia's public housing stock consisted of some 304,000 dwellings out of a total housing stock of more than 7.1 million dwellings, or 4.2% of all housing stock[3] (compared with 20% in Denmark, 46% "low rent housing" in France and 50% public housing in the UK at peak).
Housing advocates have urged construction of new public housing dwellings to meet the rising numbers of families seeking public housing. Existing public housing stock has been severely underfunded, and older buildings demolished.[4][5] There are also moves towards privatisation and transition into community and social housing models, reinforced through government policies which aim to sell large amounts of public homes into the private market.[6] This has led to recent campaigns to save public housing marked for demolition,[7][8] and advocate for upgrades and maintenance and construction of new public housing dwellings, such as the Bendigo street housing campaign in which homeless people were housed by community in homes left empty by the Victorian state government.[9]
The state government departments which are responsible for providing public housing have been known by a variety of names due to their history in each state, such as the Office of Housing (Victoria), the Department of Housing (Queensland) and Housing SA (formerly known as the Housing Trust, South Australia). Their official name tends to change with the way each state government prioritises public housing within its departmental structure. For example, for a time in the 1980s, Victoria's public housing had its own department (Department of Planning and Housing). Since the early 1990s, departmental restructuring under the Kennett government relegated its status to the 'Office of Housing' within the Department of Planning and Development. It has since been moved from a 'bricks and mortar' issue to one of health and welfare, now being an office within the Department of Human Services. The management of some public housing has been outsourced to not-for-profit management companies as part of a demand management philosophy to target it towards people with special needs.
Dwelling types
Australian public housing has traditionally been of two main types – inner-city medium to high-rise apartments, and low-density townhouses or fully detached houses on master-planned estates located on, what were at the time of construction, the suburban fringes of cities and towns. The inner-city public housing is mostly found in Melbourne, Sydney and to an extent, Perth, with a high-rise tower block development in Stainforth Court,[10]Hobart. These estates generally comprise 3-5 story walk-up flats and 8-22 story high-rise towers. Since the late 1990s, the Victorian government has embarked on a process of redeveloping its inner-city estates with a mix of public and private housing. Low-density suburban estates can be found in nearly every city and town in Australia. Some of the low-density housing has been sold off over the years to long term tenants, and some has begun to circulate on the private property market at high prices in gentrified suburbs such as Port Melbourne.
History
Public housing from the 1890s to 1970s
While many Australian housing affordability academics[who?] attribute the "Golden Age" of affordable housing in Australia from 1945 to 1975,[11][12] issues of affordable housing and housing conditions in state capitals for workers had become a concern of governments from early in the 20th century.[13][14] In the first decade of the 1900s, Australia was still feeling the effects of the 1890s economic depression.[15] At the time, the only housing options available were private leasehold (accounting for 45% of tenure arrangements in Australia in 1911), owner-occupier freehold (accounting for 50% of tenure arrangements), and other informal tenure arrangements.[16] Before economic recovery was achieved, however, all progress was halted by World War I from 1914 to 1918.[17]
From 1912 to 1918, several state governments commissioned reports investigating their state’s housing system failures, resulting in the establishment of various financial schemes across all states that focused on making home ownership more attainable for more of the working class.[18] In addition, the Commonwealth government established the War Service Homes Scheme in 1919 which offered very competitive loans to returned war servicemen for the purpose of constructing or buying a home.[19] Although the 1920s saw a rebound in terms of economic and housing activity, the Great Depression of the 1930s saw economic and housing conditions returned to that of the worst days of the 1890s.[20]
During the Great Depression, unemployment in Australia rose to over 30%.[21] In addition to the rising level of poverty, the lack of new housing stock in Australia left an unprecedented number of workers left powerless in the face of merciless private landlords who at the time had the legal right to take as ransom the belongings of renters to cover unpaid rent and rapidly deteriorating living conditions.[22] This resulted in a significant amount of urban renters turning to informal settlements and 'slums' for shelter, such as Melbourne’s 'Dudley Flats'. The state of the housing system nationwide and the squalor in which those who were subject to it lived drew protests from the working class and the criticism of reformists from various backgrounds.
The Australian Labour Movement laid the blame for the poor social conditions of the 1930s in the capital cities squarely at the feet of the private landlords as well as the state and Commonwealth banks, which were popularly understood to also have played a critical role in the 1890s economic crash.[23] Resistance to evictions during the 1930s, which involved tactics ranging from demonstrations to the occupation of real estate offices and homes, led to the introduction of government rental assistance in some states and fuelled demands for public housing.[24][25] From the political right, there was slowly amounting pressure to reclaim the slum sites (often formed in seaside areas in Australian capital cities) for more economically productive activities.[26] At the same time, proponents of the emerging town planning movement in Australia began actively arguing for state and national government involvement in developing town plans as a means of slum eradication.[27][28] Inspired by the garden city movement in the United Kingdom, it was thought that the rationalization of urban development via town planning could not only improve the urban environment, but also social behavior.[29] In the case of Victoria, Methodist social reformer Frederick Oswald Barnett during this period was particularly influential in creating wider popular concern (as well as voyeuristic interest) in the awful condition of the slums in Melbourne.[30]
Another round of reports was commissioned by federal and state governments in the mid to late 1930s, including those of the Housing Investigation and Slum Abolition Board (Victoria, 1936), the Housing Slums Investigations Committee (NSW, 1936), and the Building Act Inquiry Committee (South Australia, 1937). These reports uniformly pointed to the proven inability of finance schemes directed towards home ownership to improve the housing system for the working class.[31] This in combination with growing social pressure for housing reform drove the Tasmanian Government to establish a housing division via the Agricultural Bank in 1935, as well as prompted the creation of the 1937 South Australian Housing Trust, the 1938 Victorian Housing Commission, and the 1942 NSW Housing Commission.[32] And then World War II broke out.
Against the backdrop of World War II and a housing market that had been at near standstill for a decade, the Commonwealth Housing Commission was established in 1943.[33] Arguing that “it has been apparent, for many years, that private enterprise, the world over has not adequately and hygienically been housing the low income group”,[34] the Commission promoted housing as a right for all Australians that should be targeted to low-income workers on a user-pays basis.[35] While most recommendations of the 1944 Commonwealth Housing Commission Report were ignored by the federal government,[36] the 1945 Commonwealth State Housing Agreement (CSHA) allowed the states to establish and operate public housing as funded by the Commonwealth via cheap loans, as well as encouraged states to provide rental rebates for low-income workers.[37] While all states operated their public housing schemes in varying ways and with different objectives (for New South Wales and Victoria in particular, a major focus was slum clearance and rehousing of the poverty stricken), preference for public housing was given to large families and recently returned servicemen.[38]
Under the first CSHA which was in place from 1945 to 1956, public housing stock nationwide rose from next to zero to 96,292 dwellings.[39] Getting construction under way took time however and a continuing shortfall meant that many people squatted disused housing during the mid to late 1940s while others lived in former military properties up until the late 1950s.[40] During this period, Australia recovered from the economic effects of World War II and, like many other Western nations at the same time, enjoyed a period of uninterrupted economic development.[41] As the economy strengthened, the private housing market once again became a significant supplier of new housing stock. In 1956, the recently elected Liberal-Country Coalition Party leader Robert Menzies renegotiated the 1945 CSHA, sounding the death knell to the golden age of public housing in Australia. Under the new CSHA, federal money was diverted away from public housing and rental assistance schemes, states were allowed to sell public housing via any means they saw fit, and private home ownership was encouraged once more.[42] From 1956 onwards, roughly 90,000 public housing built under the CSHA were sold across Australia.[43]
Further heralding the end of public housing was the emergence of economic rationalism in the 1960 and 1970s. Replacing the post-War Keynesian idea that government intervention in the housing markets was a necessary virtue, public opinion was swaying to the neoliberal idea that government intervention by the way of public housing was one of the causes of the problem.[44] This idea was helped along by the 1975 Royal Commission into Poverty that claimed that “Of the total 183,000 housing authority tenants the total poor numbered only 51,000; 132,000 housing commission rented dwellings (72%) were occupied by people with incomes more than 120% of the poverty line”.[45]
In recent years, not-for-profit community housing providers have developed a more prominent role in providing affordable housing to eligible tenants. These community housing providers are usually registered charities and include not for profit housing associations and rental housing co-operatives. Organisations such as the Brisbane Housing Company, a not-for-profit corporation operated by the Queensland Government and the Brisbane City Council is an example of a housing association. Cooperation between state housing departments and community housing providers is increasing, as in Queensland where prospective tenants who are on the waiting list for public housing are now also on the waiting list for community housing.[46]
Public housing today
Construction of new public housing dwellings is currently at its lowest rate for 40 years and existing public housing stock is severely underfunded.[47][48][49] The public housing waiting list in Victoria, for example, was at 45,600 applications, representing 99,000 people, as of June 2020. This represents a dramatic increase in applications in recent years.[50] There is a severe lack of new public housing dwellings.[51][6]
There are also moves towards privatisation through transition into community housing models. This can create tension between non-government organisations working on housing and homelessness, with some vying for management or ownership of previously state-owned or managed public housing, while other organisations resist privatisation and advocate for the expansion of public housing as the preferred model to alleviate waiting lists and homelessness.
There have been a number of recent campaigns to save public housing marked for demolition, advocate for upgrades and maintenance and construction of new public housing dwellings. State governments will occasionally announce funding policies for upgrades and maintenance. The issue of empty state government-owned homes is increasing as every state has hundreds or thousands of empty homes that could be transferred to public housing registers.[52][53][54] In Melbourne, Victoria, this issue led to the Bendigo street housing campaign in which homeless people were housed by community campaigns in homes left empty by the Victorian state government.[55]
Suburbs with public housing
Some suburbs of Australian cities with a high concentration of public housing, with at least 15% of all occupied dwellings recorded as being rented from a state or territory housing authority include:[when?][citation needed]
Public housing is a form of housing tenure in which the property is usually owned by a government authority, either central or local. Although the common goal of public housing is to provide affordable housing, the details, terminology, definitions of poverty, and other criteria for allocation vary within different contexts. Within the OECD, social housing represents an average of 7% of national housing stock (2020), ranging from ~34% in the Netherlands to less than 1% in Colombia.
In Ireland and the United Kingdom, housing associations are private, non-profit making organisations that provide low-cost "social housing" for people in need of a home. Any budget surplus is used to maintain existing housing and to help finance new homes and it cannot be used for personal benefit of directors or shareholders. Although independent, they are regulated by the state and commonly receive public funding. They are now the United Kingdom's major providers of new housing for rent, while many also run shared ownership schemes to help those who cannot afford to buy a home outright.
State housing is a system of public housing in New Zealand, offering low-cost rental housing to residents on low to moderate incomes. Some 69,000 state houses are managed by Kāinga Ora – Homes and Communities, most of which are owned by the Crown. In excess of 31,000 former state houses exist, which are now privately owned after large-scale sell-offs during recent decades. Since 2014, state housing has been part of a wider social housing system, which also includes privately owned low-cost housing.
Affordable housing is housing which is deemed affordable to those with a household income at or below the median as rated by the national government or a local government by a recognized housing affordability index. Most of the literature on affordable housing refers to mortgages and a number of forms that exist along a continuum – from emergency homeless shelters, to transitional housing, to non-market rental, to formal and informal rental, indigenous housing, and ending with affordable home ownership.
In the Victorian political system, the State Minister for Housing is a State Government cabinet position responsible for Housing. The Minister for Housing is responsible for the Office of Housing ; and is one of six state ministers responsible for the Victorian Department of Families, Fairness and Housing (DFFH).
Home ownership in Australia is considered a key cultural icon, and part of the Australian tradition known as the Great Australian Dream of "owning a detached house on a fenced block of land." Home ownership has been seen as creating a responsible citizenry; according to a former Premier of Victoria: "The home owner feels that he has a stake in the country, and that he has something worth working for, living for, fighting for."
The Housing Commission of Victoria was a Government of Victoria body responsible for public housing in Victoria, Australia. It was established in 1938, and was abolished in 1984.
In the United States, subsidized housing is administered by federal, state and local agencies to provide subsidized rental assistance for low-income households. Public housing is priced much below the market rate, allowing people to live in more convenient locations rather than move away from the city in search of lower rents. In most federally-funded rental assistance programs, the tenants' monthly rent is set at 30% of their household income. Now increasingly provided in a variety of settings and formats, originally public housing in the U.S. consisted primarily of one or more concentrated blocks of low-rise and/or high-rise apartment buildings. These complexes are operated by state and local housing authorities which are authorized and funded by the United States Department of Housing and Urban Development (HUD). In 2020, there were one million public housing units. In 2022, about 5.2 million American households that received some form of federal rental assistance.
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Frederick Oswald Barnett (1883–1972) was an Australian social reformer. He was responsible for raising public awareness of inner-city poverty and leading the campaign for improved housing conditions.
Housing in the state of Victoria, Australia is characterised by high rates of private housing ownership, minimal and lack of public housing and high demand for, and largely unaffordable, rental housing. Outside of Melbourne, home to 70% of the state's population, housing and rent is more affordable. In Melbourne, access to public housing is generally better, but housing and rent are less affordable.
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Public housing in the United Kingdom, also known as council housing or social housing, provided the majority of rented accommodation until 2011 when the number of households in private rental housing surpassed the number in social housing. Dwellings built for public or social housing use are built by or for local authorities and known as council houses. Since the 1980s non-profit housing associations became more important and subsequently the term "social housing" became widely used, as technically council housing only refers to housing owned by a local authority, though the terms are largely used interchangeably.
Housing in the United Kingdom represents the largest non-financial asset class in the UK; its overall net value passed the £5 trillion mark in 2014. Housing includes modern and traditional styles. About 30% of homes are owned outright by their occupants, and a further 40% are owner-occupied on a mortgage. About 18% are social housing of some kind, and the remaining 12% are privately rented.
Affordable housing is housing that is deemed affordable to those with a median household income as rated by the national government or a local government by a recognized housing affordability index. A general rule is no more than 30% of gross monthly income should be spent on housing, to be considered affordable as the challenges of promoting affordable housing varies by location.
Joe Flood is a policy, data analyst and mathematician. He has made contributions to mathematics, housing and urban economics, urban indicators, slum studies, climate change and genetic genealogy.
Community housing in Australia is not-for-profit affordable housing provided by community housing organisations known as Community Housing Providers (CHPs). It is part of the social housing sector. CHPs have varying modes of operation and structure, and different types of stock. Any budget surplus in CHPs must be used to maintain existing housing, to provide better services for tenants or to help finance new properties. Although independent, the CHPs are regulated by the state, and commonly receive public funding. Most of their stock is owned by public housing authorities (SHAs) in each State, and the CHPs manage the tenancies using the rent received from tenants.
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The Australian residential property market is the section of the Australian property market that provides rental properties by landlords to tenants. In Australia 31% of households rent their residences. The vast majority rent from private landlords, and a small minority rent from public housing authorities. Over the last three decades the proportion of Australians in public housing has halved, whilst the amount renting privately has grown. The average weekly price for a rental in Australia is $570 AUD. Sydney has the most expensive capital city rents. Rental rates have increased faster than inflation in recent years.
↑ Sandercock, L. (1977). Cities for Sale. Carlton: Melbourne University Press.
↑ Kemeny, J. (1983), The Great Australian Nightmare. Melbourne: Georgian House.
↑ Berry, M. (1988). To buy or rent? The demise of dual tenure policy in Australia'. In Howe, R. (Ed). New Houses for Old. Fifty Years of Public Housing in Victoria. Melbourne: Ministry of Housing and Construction.
↑ Hayward, D. (1996). What are these references even The reluctant landlords? A history of public housing in Victoria. Urban Policy and Research, 14(1), 5-36. DOI 10.1080/08111149608551610.
↑ Dalton, T. (1988). Architects, engineers and rent collectors: an organisational history of the Commission. In Howe, R. (Ed.). New Houses for Old. Fifty Years of Public Housing in Victoria. Melbourne: Ministry of Housing and Construction.
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