Moderate Income Housing Research
The need for Moderate Income Housing in the Sydney area
Professor Bill Randolph prepared a report for Landcom to assist in identifying the market and location of Moderate Income Households in Sydney. The report sets out to address three key tasks:
- Explore the apparent emergence of increasing un-affordability in home ownership, and to assess the burden of securing a loan for MIH.
- Analyse the current extent and nature of MIH stress by: geographic area; household and family type; by tenure; and housing type.
- Assessment of un-affordability on essential service workers on moderate incomes.
- Click here to view executive report (pdf document)
Accessory dwelling units studyThis study provides information on the potential provision of private rental affordable housing in the form of self contained accommodation attached to, or forming part of existing and new housing -- all within the same property title.
Overseas, especially in the U.S. and Canada, such accommodation fulfils an important affordable housing solution where rental supply is tight. The potential advantages of this form of affordable housing is that it can be established within existing homes that have an under-utilised bedroom and other spaces. This is important as 'baby boomer' couples age and become 'empty nesters'. Creating a one bedroom self contained unit in a former 3/4 bedroom home not only creates a new affordable rental housing unit, through the private sector (i.e. no public subsidy), but creates an additional income stream for the empty nester couple, supplementing their income and later pension income. Furthermore, in established suburbs, it materially assists urban consolidation.
Manufactured housing studyA study of the market potential for quality manufactured homes for moderate income households was undertaken in 2001/2. The study was based on the fact that in the US, up to 30% of new homes for first home buyers are manufactured homes which compete directly with site built homes in terms of features and quality, but are less costly.
- Click here to view executive summary (pdf document)
Market study of moderate income housingA study of moderate income housing needs and aspirations was undertaken in the Liverpool and Fairfield areas in 2001. It revealed that 1 in 4 households were on moderate incomes, that they aspired to own their own home and that whilst their clear preference was for a detached brick and tile home, they were open to alternative forms and designs that were affordable to them.
- Click here to view executive report (pdf document)
Demographia International Housing Survey 2007The survey by US consultants Demographia warns that the poor levels of housing affordability could hurt the economy as buyers are forced to tip more of their income into housing.
The Demographia report says it takes 6.6 years of median annual household income in Australia to buy a median-priced home — more than twice as long as it would take in Canada. For housing to be regarded as affordable, the report said, it should not exceed three times annual household income.
Los Angeles had the least affordable housing market among 159 cities surveyed. Sydney was ranked seventh, Perth 11th and Melbourne 23rd.