20 June 2021 – NSW would create 16,200 jobs and generate $5.2 billion in extra economic activity by meeting the average OECD benchmark on social housing supply, according to new economic modelling released ahead of this week’s budget.
The report from Equity Economics, commissioned by the Community Housing Industry Association NSW, forecasts the benefits of building 5,000 extra social housing dwellings each year.
The modelling shows the investment would also see 750 fewer people entering homelessness each year, creating cost savings of $13 million in avoided health and social services costs.
According to the report, Maximising the returns, cost savings to the NSW Government would be $316 million if delivery of the additional social housing dwellings is shared between the community housing sector and the NSW Government.
Critically, the modelling highlights the value of investing in community housing projects that will deliver a 50 per cent higher return on investment compared to the cost of building new public housing.
Quotes attributable to NSW CHIA CEO Mark Degotardi:
“Right now we face a housing crisis for vulnerable people in this state with over 50,000 households currently on the social housing waiting list, some of whom will be waiting 10 years or more to be housed.
“This waiting list won’t be cleared overnight, but it is critical the NSW Government sets its sight on addressing the backlog in this week’s budget.
“A commitment to 5,000 extra social housing dwellings each year would transform lives and, as this report shows, deliver tangible economic benefits to the taxpayer. Community housing providers can partner with the NSW Government to deliver these benefits.”
“In less than a decade, community housing providers have built thousands of new homes across NSW, created thousands of new construction jobs, and contributed $1.2 billion to the state’s economy. We can do much more with more government support.
“A significant, long-term funding commitment in this week’s budget would help to address NSW’s housing affordability crisis and deliver thousands of new jobs across the state.”
Media contact: Kayla Foster, 0447 040 029