Media release

9th March 2025

CHIA NSW CEO, Mark Degotardi

I don’t really care if we decide to take action on housing affordability because of our heart or because of economic case self-interest. As long as there is action.

The Productivity Commission recently published its report on government services relating to housing and homelessness.  It is a shame the report was released in the middle of the night, because its stark content needs to see the light of day.

The report tells a now familiar tale.  Homelessness services are overrun, social housing waitlist numbers are surging, and we’re just not building enough social and affordable housing. It’s less than 2% of total dwelling completions across Australia.

Although there are more than 63,000 households on the NSW social housing waitlist alone, the Productivity Commission reports that NSW has the lowest per capita expenditure on social housing of any State or Territory.  No matter which way you cut the data, we are losing this battle. We’re in trouble.  The housing crisis is at critical levels and if we’re to make a dent, we need to respond in kind.

The Federal and NSW Governments have made welcome forays into this space. The establishment of the Housing Australia Future Fund (HAFF) at the national level and the announcement of significant funding in last year’s State budget are examples of their responses. The foundations have been laid but with a federal election approaching and housing affordability a key priority for voters, an honest assessment of what needs to be done is required.

Three significant steps must be taken by governments if we are to maximise the opportunity for change.

Firstly, we need programmatic, not piecemeal responses. We need longer term commitments to growing social and affordable housing in NSW and across the country.  Housing is critical infrastructure that requires long-term commitment and planning. It requires engagement and partnership with the community housing sector and other elements of the broader housing system, like planning and local government.

Debate at the Federal level should be about how to increase the scale and effectiveness of the HAFF, not about whether the HAFF will survive.  This stop and go approach to housing policy and funding is making the problem worse.

Secondly, we must meet the scale of the crisis with funding at the same scale.  Last year’s NSW Budget announcement and the HAFF are significant – a good start.  We must build on these commitments, both in terms of our ambition and the scale of investment.

NSW’s budget investment will see 8,400 new social homes over the next seven years. We need to set our sights higher and commit to 25,000 new social homes by 2035.

Lastly, we need to move with more urgency. Homes NSW’s commitment to deliver “more homes, more quickly” is strongly supported by the community housing sector and is a mantra that should be applied at the Federal Government level as well.

We can’t meet a housing crisis with business as usual responses.  Future rounds of the HAFF need to be more streamlined, with faster procurement and stronger partnerships with community housing providers to maximise investment.

There are good economic and social reasons to push harder for success: better physical and mental health and better access to services and transport for housing residents. All these outcomes reduce demand for government services and increase productivity.

Investment in social and affordable housing also creates jobs and improves economic output over time. It makes economic sense; it is the right thing to do and it has broad community support.

Media contact: Bron Matherson, 0438 844 765 or Alana Mew, 0419 929 722