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Community housing

Why do we need it, and how does it work?

NSW has a shortfall of 132,600 social and affordable homes

That’s a huge number of people in NSW who can’t afford to rent a home. The social housing waitlist alone has ballooned to 70,000 households who have turned to the government for social housing, only to face a wait that’s often estimated at 10 years or more. Meanwhile many people on modest incomes (such as retail, hospitality and care workers) aren’t eligible for social housing, but simply can’t afford to rent near their work on the private market

And behind the headline numbers are human stories: perhaps a lost job meaning that rent can’t be paid; chronic ill health causing a mortgage default; or a relationship ending, with drastic impact. Sadly, domestic violence is a common thread (according to the Australian Institute of Health and Welfare, two in five people helped by specialist homelessness services in 2024-25 had experienced family and domestic violence).

Tile impacts of community housing 2
Sources: NSW Homelessness strategy and Give Me Shelter

How does community housing help?

Community housing is safe, secure and affordable housing that’s made available both to people on the social housing waitlist and to people eligible for affordable housing.

It’s delivered by Community Housing Providers (CHPs) — not-for-profit organisations that reinvest every dollar back into homes, services and communities. Unlike private landlords, CHPs exist to help people, not make a profit. CHPs are registered under government regulatory frameworks and are regularly assessed against service, governance and financial performance standards. And CHPs provide more than just a roof: other services help support community, health and wellbeing.

By combining safe and secure housing with long-term support, community housing creates lasting social and economic value — helping people thrive while strengthening communities across Australia.

A “profound” impact

Unsurprisingly, recent research found that the impact of securing social housing on interviewees’ capacity to lead a decent life was “profound”.”Their capabilities expanded and their lives were fundamentally transformed. Not surprisingly, a key aspect precipitating this shift was knowing that their security of tenure was now virtually guaranteed and their rent (a maximum of 25% of income) was affordable.”

And these benefits can be quantified: affordable/social rent tenants see a cost-of-living relief of $10,100 per dwelling per year, while the delivery of 40,000 dwellings planned over the next 40 years will deliver $4.4bn in societal benefit. (For more, see SIGMAH, a tool developed with Swinburne University of Technology, Australian Community Housing and others, to help social and affordable housing providers quantify social and environmental benefits.)

Community housing FAQs

CHPs are not for profit charities – not public businesses – and they often manage government-owned properties under contract. They are independently regulated and their tenants have the same rights under the Residential Tenancies Act 2010 as anybody else.

Community housing is a blanket term that encompasses both social and affordable housing. It’s delivered by government bodies or by Community Housing Providers.

Social housing is for people on very low incomes who cannot access suitable accommodation in the private rental market. Social housing often supports people with specific needs – for example, individuals experiencing homelessness, escaping domestic and family violence (DFV), or living with disability.

To access social housing, eligible tenants apply to join the social housing wait list.

Social housing can either be owned and managed directly by government (this is public housing) or by a Community Housing Provider.

Affordable housing aims to fill the gap for people who don’t qualify for social housing, but can’t afford full market rental.

It is owned and managed by Community Housing Providers.

Social housing is for people on very low or low incomes who can’t afford to rent. They must meet income eligibility limits.

Affordable housing: is for people on a broader range of incomes and eligibility varies depending on the provider and other factors.

Eligibility requirements apply for accommodation delivered under the Housing SEPP or with government assistance.

Local council schemes may have different eligibility requirements.

Social housing is usually owned by a CHP. (Public housing, on the other hand, is usually owned by Homes NSW).

Affordable housing can be owned by CHPs, local councils, NSW Government agencies or private developers (eg properties delivered under the Housing SEPP)

Community housing is managed by a CHP (which could be an Aboriginal CHP).

The CHP is a not-for-profit organisations that reinvest every dollar back into homes, services and communities.

Many factors are taken into account and different rules apply for different programs.

Social housing is usually up to 25% of household income. For more, see
Homes NSW tenant fees policy

Affordable housing rent is often 25-30% of household income and is capped at 80% of market rent. Commonwealth Rental Assistance is available. For more, see NSW Affordable Housing Ministerial Guidelines.

Affordable housing delivered through local council schemes is
typically charged at 30% of household income.

Yes.

Unlike public housing, CHPs are registered under government regulatory frameworks and are regularly assessed against service, governance and financial performance standards.