Affordable housing contributions

Housing is considered affordable where the cost of rent or paying the mortgage does not absorb more than 30% of the gross income of a very low to moderate-income household. Very low, low and moderate-income households are defined in legislation, within the income ranges published annually.

The terms affordable housing and affordable rental housing are used in the inner city to describe housing that is owned by the government or a registered community housing provider. This type of housing is rented to a mix of very low to moderate-income households for no more than 30% of household income.

The decline in housing affordability and the inability of everyday people to access affordable housing is having an increasingly detrimental impact on socio-economic diversity, which underpins the city’s rich social fabric.

The inability to access affordable housing pushes lower-income households to the city fringes. The ongoing loss of key workers living in the city is also a concern, as it is increasingly difficult for essential employment sectors to fill employment vacancies and staff shifts.

Affordable rental housing supports a diverse and well-functioning city. For people on lower incomes it provides a critical alternative to private market housing, providing some opportunity to live in the city. It also acts as a release valve to social housing, easing the pressure on demand for an already undersupplied market.