Council plans for mandatory social and affordable housing in new Geelong estates could drive up prices for other homes, Victoria’s development institute has warned.
The requirement could result in developers passing on costs to homebuyers, Urban Development Institute Australia (UDIA) chief executive officer Danni Hunter suggested.
“Excessive affordable housing requirements, introduced without consideration of market and investment realities, will actually drive up prices and reduce housing supply,” she said.
While developers had “a role” in delivering affordable housing, supply shortages stemmed from 30 years of government under-investment, Ms Hunter said.
“The development industry can’t absorb the cost of that. No one wins when prices are out of reach for everyday Victorians.”
The warning comes after Geelong’s council this week announced plans for 13,500 new social housing dwellings over the next 21 years.
The plan was a chance for council to show leadership on one of the region’s most “serious challenges”, according to social inclusion portfolio chair Sarah Mansfield.
Cr Mansfield said the plan was “one of the most important things” council could do and that it could “impact in the lives of many”.
“We often talk really positively about all of the wonderful things happening in our region, but the benefits of our growth aren’t being shared equally, and we are seeing an increase in inequality.”
Greater Geelong has 3300 social housing residences and nearly 11,000 households living in housing stress, according to City Hall.
City Hall estimates the region will need 13,500 new social housing dwellings, including replacing 1500 existing residences, to keep up with population growth.
Council’s Draft Social Housing Plan 2018-2041 aimed to increase social housing by 6000 dwellings by 2031 and another 6000 by 2041.
The plan would require new developments to include social and affordable housing based on “identified need”.
Council would set up an advisory committee and seek agreements with state and federal governments under the plan.
Barwon South West Homelessness Network coordinator Rebecca Callahan said the plans accurately reflected demand based on population growth.
“It’s very exciting that the consultants have come up with the recommendations they have.”
She urged council to make a mandatory requirement for developers to set aside 15 per cent of new estates for social housing.
City Hall said social housing tenants, community agencies, housing providers and the industry all contributed to the plans, available for feedback at www.geelongaustralia.com.au/yoursay until the end of this year.
