ACT Rental Affordability Strategy
Client Name: ACT Treasury
Industry: Housing, Public Policy Research,
Capabilities: Data analysis, Stakeholder consultation, Policy analysis
The Challenge
Increasing housing costs have led to an increase in those renting as opposed to owning property, which has placed greater pressure on Australia’s rental market. In the ACT, demand for dwellings for those in Income Quintile 2 will increase from 37,500 dwellings in 2021 to 57,000 in 2041. However, current demand is not being met by affordable supply.
To help address the situation, the ACT Government has a target to deliver an additional 600 affordable rental properties by 2025-26. It is unlikely this target will be achieved under business-as-usual policy settings.
The Action
Polis Partners supported Lockbridge in developing an ACT rental affordability strategy which aims to deliver the additional 600 affordable rental dwellings in 3 years. The strategy recommended policy settings that support the sectors’ short- and long-term supply of affordable rentals for low-income households. The work required a comprehensive policy review of domestic and international affordable housing policies and extensive consultation with local community housing providers, industry bodies and government agencies.
Complementing this was modelling of local affordable rental supply and projections of future demand, as well as detailed financial modelling of different stock delivery models and the implied government subsidy required for each of these models.
The Results
The strategy focuses on clear, actionable recommendations, with a considered road map for implementation. The extensive research and consultation are presented in a way that allows them to be a longer-term reference source for policy development and the sector.
Our understanding of the government’s policy environment combined with our stakeholder credibility and on-the-ground commercial experience in delivering affordable housing were critical to the project’s success.