Match supply to demand

Australia needs an appropriate supply and range of social and affordable rental dwellings that give people access to different types of low-cost housing.

Providing a variety of housing options has several benefits, including:

  supporting people as they move between different forms of housing, including the private rental and ownership markets49

  catering for different household types and income brackets

  recognising the needs of Aboriginal and Torres Strait Islander peoples

  enabling older Australians to stay in their communities

  providing nurses, aged care workers, teachers and other key workers with affordable accommodation close to their employment.

Access to social housing is managed through waiting lists, which are large and growing due to insufficient supply. As at 30 June 2019, there were 148,500 households around Australia on a waiting list for public housing and 12,100 households awaiting Aboriginal and Torres Strait Islander housing.50

Also, while the majority (80%) of social housing residents live in dwellings that are considered adequate for their household composition,51 the mix of housing types does not always match tenant requirements.

Ensuring the best housing for tenant requirements is challenging. Dwellings are often underutilised. This occurs when two or more bedrooms are surplus to a household's needs. The 2020 Australian Institute of Health and Welfare housing assistance report shows underutilisation has remained relatively stable over the long term. It sits at 17% for public housing and 11% for community housing, but increases to 26% for Aboriginal and Torres Strait Islander households in some areas.52

At the same time, while there has been progress, overcrowding continues to be a significant issue for Aboriginal and Torres Strait Islander households, especially in Remote Areas. In 2019, 50% of very remote and 31% of remote Aboriginal and Torres Strait Islander housing residents were living in overcrowded conditions.53

Ongoing investment would ensure suitable low-cost housing continues to be available to Australians through all stages of their lives.