Green Building Standards Unlock Environmental, Economic, and Social Benefits in Affordable Rental Housing

Strategic Insights -

Research conducted at Griffith University's Cities Research Institute has highlighted the benefits of implementing green building standards in the affordable rental housing sector. The study reveals that a green-building mandate within a federal affordable housing financing scheme can lead to reduced energy and water bills, low-cost financing for community housing, and a decrease in Australia's carbon emissions.

Key Takeaways:

  • Implementing a green-building mandate can reduce annual rental housing costs by approximately $5-17 per week for 1-4 person households over a 10-year period.
  • Integrating green building principles into affordable housing developments can contribute to a 3% reduction in Australia's carbon emissions if applied nationally.
  • The Australian government's move towards bond-based financing structures may lead to an expansion of affordable rental housing stock, providing an opportunity for positive change as the country transitions to a low-carbon economy.
  • Almost half of Australian low-income households face 'housing stress', with more than 30% of household income allocated to housing.
  • Existing initiatives to increase affordable housing and reduce rental costs have been hindered by 'split-incentives' barriers, where landlords and developers are reluctant to invest in efficiency improvements.
  • Domestic residential energy costs have increased by approximately 60% over the past 10 years, with gas and water costs following similar trajectories.

Statistics:

  • $5-17 per week reduction in annual rental housing costs for 1-4 person households over a 10-year period.
  • 3% reduction in Australia's carbon emissions if a green building policy is applied nationally.
  • 60% increase in domestic residential energy costs over the past 10 years.
  • 30% of household income allocated to housing for low-income Australian households.
  • 50% of Australian low-income households facing 'housing stress'.

Sources:

  • Griffith University, Journal of Cleaner Production research.

[1] Stefen MacAskill, "Improved Rental Affordability and Reduced Carbon Emissions: A Green Building Mandate for Affordable Housing."

  • Griffith University, "Australian Government's Move Towards Bond-Based Financing Structures to Lead to Expansion of Affordable Rental Housing Stock".