Some of Sydney’s most desirable suburbs, renowned for their amenities and harbourside views, are falling behind in the provision of social housing, according to new research. This trend is not isolated to Sydney; across Australia, many well-located suburbs have minimal social housing. In New South Wales, Victoria, Western Australia, and Queensland, over 70% of high-amenity locations have less than 5% social housing, highlighting a significant opportunity for increased provision in these areas.
Dr. Stephen Glackin, a senior research fellow at Swinburne University of Technology, led a study for the Australian Housing and Urban Research Institute (AHURI) titled “Small-area analysis and projections of social housing change.” He noted,
“Most developed nations have more than 5% social housing. Some countries in Europe have 10%, some have 20%, so it’s doable.”
This research emerges as the federal government prioritizes housing, pledging to deliver 55,000 social and affordable rental homes nationally over the next five years. However, increasing density remains a challenge in some of Sydney’s most sought-after locations.
High-Amenity Areas with Low Social Housing
According to the AHURI report, coastal and city suburbs with high concentrations of amenities often have lower proportions of social housing. These areas are ranked by quintile, with five being the highest in terms of access to public transport, schools, medical services, employment opportunities, and leisure activities.
In 2021, the proportion of social housing compared to total housing stock was just 0.1% in Double Bay-Darling Point and 0.3% in Sydney (South)-Haymarket, both high-amenity locations. Similarly, North Sydney-Lavender Bay and Paddington-Moore Park had 0.6% and 0.8% respectively, while Chatswood-East had 1.1% and Bondi-Beach-North Bondi had 1.2%.
Local councils have expressed a desire for a diverse housing mix but note that social housing is primarily a responsibility of higher government levels. A spokesperson for Woollahra Municipal Council stated,
“Woollahra Council supports the provision of a diverse housing mix throughout the local area.”
Meanwhile, a City of Sydney spokesperson emphasized their commitment to addressing the housing crisis, stating,
“Sydney should not simply become an enclave for the rich. We need more housing, not less.”
Challenges and Opportunities
The AHURI research underscores the need for increased social housing in areas with good amenities. Social housing includes both public and community housing, but high costs pose a significant challenge. Alexandra Raphael, interim chief executive of Australian Community Housing, explained,
“The high-density areas are also where everyone wants to live. And also where land is incredibly expensive, so it makes it very difficult for the government in those places.”
The report found higher rates of social housing in suburbs with poor access to amenities. For example, in western Sydney, areas like Ashcroft-Busby-Miller and Bidwill-Hebersham-Emerton have social housing proportions of 27.8% and 24.1% respectively, despite being in locations with the lowest level of amenities.
Historical Context and Future Directions
Historically, governments have tended to build social housing in areas where land is cheaper, often far from employment centers and amenities. Independent economist Saul Eslake noted,
“For those with complex needs, those needs were less likely to be met than if the housing was located in more affluent areas where more services were available.”
Interestingly, inner-city areas like Redfern and Glebe defy this trend, boasting higher concentrations of both social housing and amenities. As Sydney continues to grapple with its housing crisis, these examples may offer valuable insights into integrating social housing into high-amenity areas.
Moving forward, the challenge remains to balance the provision of social housing with the economic realities of land costs in desirable areas. The federal government’s commitment to increasing social and affordable housing stock is a step in the right direction, but local and state governments will need to collaborate closely to address the broader issues at play.
