Why Social Housing Supply Can’t Keep Up – Exploring the Causes, Consequences & Potential Solutions to Australia’s Housing Shortfall (Ep. 312)

Show Notes – Social Housing: Why Supply Can’t Keep Up

What is Social Housing?

This week, The Trio unpack social housing: subsidised accommodation aimed at vulnerable Australians.

It includes both public housing (state-managed) and community housing (run by not-for-profits).

Unlike private rentals, it’s allocated based on need, not market competition and supports those on low incomes, often dealing with complex challenges like homelessness or family violence.

Crisis Accommodation vs. Social Housing

Cate draws a clear line between crisis accommodation (short-term emergency shelters) and longer-term social housing. Crisis services, often provided by groups like The Salvation Army and Mission Australia, offer additional safety nets with added support services such as counselling and case management.

How Rents Are Set

Rent in public housing is typically capped at 25–30% of assessable household income. Rebates are applied to keep rent affordable, based on wage income and benefits.

Mike adds that in community housing, Commonwealth Rent Assistance is also factored in and providers usually charge under 75% of market rent to remain GST-exempt under social housing tax rules.

Affordable vs. Social Housing

Dave and Cate address the often-blurred lines between affordable housing and social housing.

While affordable housing lacks a universal definition in Australia, social housing is more targeted, prioritising those with urgent and ongoing need and is strictly income-tested.

A Shrinking Share of Housing

Cate points out that social housing now makes up just 4% of all housing in Australia, a figure unchanged since the 1990s despite population growth.

Over 170,000 households are currently on waiting lists, some facing years-long delays.

Meanwhile, ageing and abandoned housing stock is going unused. Cate cites specific examples in Knoxfield and Ballarat.

Demand Far Outpaces Supply

Mike estimates over 565,000 households either live in or are waiting for social housing.

Projections suggest that by 2037, Australia may need over 1.1 million dwellings, far exceeding current policy commitments.

International Comparisons

The Trio compares Australia’s performance globally.

At just 4.4%, we lag behind the OECD average (6.9%) and trail countries like the UK (17%) and the Netherlands (34%).

The message is clear: more investment in social housing and smarter policy are urgently needed.

Structural Fixes Needed

From policy fragmentation to underfunded maintenance and derelict stock, the episode digs into the inefficiencies holding bacl supply.

The team calls for a unified national approach: one that defines, funds, and expands social housing with long-term vision.

Dave’s Three-Step Plan

1. Define what social housing means nationally
2. Audit and fix vacant properties
3. Set a long-term percentage target for social housing, then build toward it

Gold Nuggets

Mike Mortlock’s gold nugget: Considering the COVID response and how the Federal government worked with the states… we need to have a national cabinet again to address this issue.

Cate Bakos’s gold nugget: “We need a bi-partisan approach!”

David Johnston’s gold nugget: Setting up a bi-partisan model, (an independent body that is not actually political) is a first start. Dave’s three point plan highlighted some of the challenges that need to be addressed with this enormous, and important task.