Landcom's Strategy for Moderate Income Housing
Housing Affordability
The strong NSW property market has placed home ownership out of reach for many people. Of particular concern is the number of essential service workers whose contribution is crucial for our economic growth and our city’s liveability. Essential service workers such as those working in emergency services, healthcare, education and trades are often forced to commute great distances to work due to a lack of affordable housing near their place of employment.
What is Moderate Income Housing (MIH)?
Moderate Income Housing (MIH) is housing and/or financing products that are affordable to households on moderate incomes, i.e. a combined household income of $52,000 to $79,000 (May 2007). The income figures are based on data published by the Australian Bureau of Statistics. The income range equates to 80% – 120% of the median gross household income in the Greater Sydney Region. ‘Affordable’ means that households spend no more than 30% of gross income on housing.
What is Landcom’s Strategy for providing MIH?
Landcom’s strategy has been to seek market-based solutions which enable moderate income households to purchase homes. In our Triple Bottom Line (TBL) reporting program we set a target that by 2008, where commercially feasible as determined by the Landcom Board, 7.5% of our housing and/or land product would be set at MIH price points.
Our focus has been on developing a diversity of innovative housing types that can be priced at levels that are affordable to those on moderate incomes. This is becoming increasingly difficult in the Sydney market and we are now looking at other strategies to achieve equitable and diverse communities. These include new financing products, development of long-term rental housing and community housing where appropriate.
Landcom’s TBL indicators and targets, which were set in 2002 and first reported against in 2003, are due for review this year. Our strategy and targets for MIH, and our housing diversity objectives more broadly, will be evaluated as part of that process.
Our results so far:
| Financial Year |
MIH as a percentage of yield |
| 2002/2003 |
2.6% |
| 2003/2004 |
6.5% |
| 2004/2005 |
12% |
| 2005/2006 |
6.2% |
| 2006/2007 |
5.1% |
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