A draft affordable housing strategy is set to be released early next year by the City of Melbourne, which believes the city’s affordable housing shortage could increase by more than 23,000 by the year 2036 without changes to the planning scheme.
This week councillors will consider a submission to the Ministerial Advisory Committee on planning for affordable housing, which recommends the introduction of a minimum state-wide requirement for developers to include affordable housing in new development projects.
“If that cannot be achieved on a specific site, a financial contribution to another affordable housing project would be recommended,” Council said in a statement.
Analysis commissioned by council, and undertaken by SGS Economics shows an affordable housing shortfall of up to 23,200 by 2036.
The current shortfall is 5500 homes.
“The analysis shows that for every $1 spent on affordable housing, more than $3 in benefits would be created,” Lord mayor Sally Capp said.
“We need to consider what levers we can use with the planning scheme and what incentives could be introduced to boost the number of affordable homes being built.
“Any changes would need to be phased in over time and include consultation with the property sector.”
Capp said providing enough affordable housing was critical to making sure Melbourne remained an “inclusive and successful city” home to a diverse population.
“We need thousands more affordable homes right now to ensure key workers – such as police, nurses, school-teachers, emergency services workers and hospitality staff – have the opportunity to live close to where their job is based,” Capp said.
The Munro development, a key project that will transform the site next to the Queen Victoria Market into a build-to-rent complex is being delivered by developer PDG Corporation and builder Hamilton Marino.
Melbourne based Salta Properties operates in the sector, announcing its mixed-use development in Richmond last year, its second BTR project.
Up to 40 affordable housing units are included at the Boyd site, a partnership between PDG Corporation and the City of Melbourne, in Southbank.
City of Melbourne’s Planning Portfolio councillor Nicholas Reece said council is developing the draft Affordable Housing Strategy, with the aim to release it early 2020.