Suburban Rail Loop Housing Model Fails to Deliver Affordable Homes

Strategic Insights -

The housing model planned for the Suburban Rail Loop in Melbourne has fallen short of its promise, delivering zero affordable homes in central Melbourne over nearly a decade, despite 31,000 new homes being approved during that time. This has prompted the Community Housing Industry Association to call for the state government to scrap the voluntary scheme and instead mandate affordable housing.

Key Takeaways:

  • The voluntary public benefit uplift scheme has resulted in zero affordable housing agreements since its inception in 2016, despite 31,000 new homes being approved in the same period.
  • The scheme allows developers to increase building density and height in exchange for providing certain public benefits, including affordable housing, but critics argue that building office space is more profitable than discounted housing.
  • Community Housing Industry Association Victoria chief executive Sarah Toohey has called for the state government to ditch the proposal and instead make affordable housing mandatory.
  • The scheme has been likened to a similar program in the Melbourne CBD and Southbank, which also failed to deliver affordable housing.
  • In contrast, a mandatory scheme introduced in central Sydney in 1996 has resulted in the contribution of $400 million and more than 1500 affordable homes built or in planning.
  • The City of Melbourne has called for mandatory inclusionary zoning to increase the delivery of affordable housing, while the state government claims that new planning rules will help ensure buildings are well-designed and include incentives for developers to create affordable housing.

Statistics:

  • 31,000 new homes have been approved in central Melbourne since 2016.
  • Zero affordable housing agreements have been made under the voluntary public benefit uplift scheme since its inception in 2016.
  • $400 million has been contributed towards affordable housing in central Sydney through a mandatory scheme introduced in 1996.
  • More than 1500 affordable homes have been built or are in planning in central Sydney through the same scheme.

Sources:

  • Community Housing Industry Association's latest report
  • The Age newspaper
  • ABC News
  • Victorian Greens acting leader Sarah Mansfield
  • The City of Melbourne's 2020-2030 affordable housing strategy
  • Victorian government's Suburban Rail Loop East project
  • Monash City Council and Whitehorse Council submissions to the public hearing for the $34.5 billion SRL East project.