The NSW Budget 2024-25 contains a significant funding boost to address housing supply and affordability, and we took our time to review it and share our insights.
"The budget marks a positive step in addressing the increasing demand for affordable housing. Achieving success will require a strong partnership between the state government and community housing providers." Charles Northcote, CHIA (NSW) chair and CEO at BlueCHP Ltd.
We are optimistic about the progress and potential for growth to start addressing the gap. Though it still falls short of the target to tackle the housing supply issue, this is a platform for growth. Currently, almost 60,000 households are on the social housing waitlist, with over 9,000 on the priority list.
Equity Economics collaborated with the Community Housing Industry Association (#CHIANSW) to conduct research in 2021. To maintain the OECD average, NSW must build 5,000 new social housing units annually for 30 years. This is the minimum target needed to maintain the current demand for social housing.
To close the gap and begin to address the growing demand for affordable homes NSW needs to deliver an additional 5,000 affordable homes annually to expand the existing supply. We also face the challenge of aging housing stock that needs replacement and requires increased investment to sustain the current housing stock.
The budget includes a $5.1 billion investment to build 8,400 social homes. This will consist of 6,200 new homes and 2,200 replacement homes, resulting in an additional 1,550 homes per year for the state's most vulnerable people. At least 50% of these new homes will be designated as priority homes for households in need due to domestic and family violence.
$655.1 million has been allocated for key workers and rental housing. This includes $450 million for acquiring sites and building 400-450 new Build to Rent dwellings for key workers in Greater Sydney. BlueCHP eagerly anticipates participating in the provision of these new dwellings, as BtR forms the foundation of our portfolio.
The package includes $1 billion allocated for repairing 33,400 existing social homes, $527 million for homelessness services, and 44 land sites to be utilised for housing delivery in partnership with the private sector.
"Now it is time for community housing providers to prove we can deliver quality affordable housing. By successfully capturing this investment and turning it into homes, we build the trust needed for more significant future investment, showing dollars spent on affordable housing deliver both social and economic benefits to the state," Charles Northcote.
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