A HOUSING STRATEGY FOR NSW ______

Submission prepared by Western Leadership Dialogue ACKNOWLEDGEMENT.

The Western Sydney Leadership Dialogue acknowledges Aboriginal and Torres Strait Islander Peoples as the Traditional Custodians of the land and pay our respect to Elders past, present and future. First Nation Peoples have experienced exclusion, discrimination and oppression for too long. The Dialogue endorses Traditional Owners having a place at the table when making decisions about their country, and especially the homes we build upon their land.

WESTERNSYDNEY.ORG.AU 2 ABOUT THE DIALOGUE.

The Western Sydney Leadership Dialogue is a not-for-profit, community initiative leading a national conversation about (GWS). The Dialogue facilitates interaction between key opinion leaders, across industry, government, academia, and the community, to inform public policy debate and to advance a GWS agenda through research, analysis, advocacy & events.

WESTERNSYDNEY.ORG.AU 3 CONTENTS.

Executive Summary 5

Housing For GWS 9 Economic Importance of Housing to GWS 10 Renewal & Maintenance of the Current Housing Supply 13 Supporting Community Housing Providers to Reach Their Potential 14 Supply – Undersupply & Over-Demand 15 Unlocking Locations & Opportunity 17 Proximity – Services & Transport 17 Availability – Utilising Available Government-Owned Land 20 Diversity – One of the Most Diverse , with the Least Diverse Housing Options 22 Reshaping Tenure and Typologies in the West 22 Creating Diverse Homes for a Diverse Population 25 Culturally Competent Homes 25 Emergency Housing – Homelessness and Victims of Family Domestic Violence 26 Housing for the Youth of GWS 27 Unaffordability in GWS 28 Resilience – Social & Affordable Homes for the Warming Future 31 Conclusion & Summary of Recommendations 35 End Notes 36

WESTERNSYDNEY.ORG.AU 4 EXECUTIVE SUMMARY.

Housing In Greater Western Sydney (GWS) Housing policy has a profound impact on the social stability, prosperity and happiness of the infinitely diverse inhabitants of GWS, in many complex, direct and indirect ways. An amenable and affordable home provides individuals, families and communities with physical comfort and safety, personal and logistic stability, a viable basis for social and economic participation, and both powerful incentive and satisfying reward for ongoing active engagement with and contribution to our shared wealth. Given its typically more pressing population density and growth pressures, relative disadvantages in many public services, shared infrastructure and general lifestyle amenity, shortcomings in housing policy that result in reduced access to a decent place to live, whether owned or rented, are especially damaging to those living in GWS.

Housing Policy Outcomes Housing policy underpins and influences outcomes in almost every other area of public policy. Good individual health, education, family, employment and economic outcomes are all dependent on quality housing. A stable and prosperous community, likewise, must first be a well-housed one. Coherent, sustainable and fair housing policy is also vital for maximising the economic contribution the sector can make, also especially important in GWS, host to significant past and projected growth in this area. Both as a social and economic pillar, housing policy is of defining importance to quality of life in GWS, the failures and flaws in it will be felt first and greatest here.

Housing Reference Group (HRG) For this reason in December 2019 the Dialogue convened the Housing Reference Group, compromising social and affordable housing stakeholders, including Community Housing Providers (CHPs), academia, the housing finance sector, councils, public land holders and various government agencies. Its purpose was to identify shortcomings in existing housing policy and make relevant recommendations, with particular reference to the learnings of the Dialogue’s 2019 East London Study Tour. This submission draws on them.

WESTERNSYDNEY.ORG.AU 5 The Sydney Housing Problem Coronavirus Crisis These problems were apparent well before Sydney’s housing policy shortcomings the current health crisis imposed seismic manifest in complex and varying ways, but strategic uncertainty on projected the underlying causal flaws may be broadly assumptions about population growth and described as follows: related housing needs. • Current housing policy facilitates sector The current recalibration of expectations structure, participation and funding and the sudden and severe downturn in mechanisms that are skewed too heavily private sector building activity, has opened towards private demand. an opportunity to address the structural • This results in inefficient allocation of problems above with lateral thinking and participating resources, and a failure to innovative recommendations. make use of all options and categories of demand, including new ideas and innovations. • Affordability becomes a binary concept, non-reflective of the diverse and evolving needs of those without wealth based in housing. • Social and affordable housing provision becomes a housing policy ‘add on’, as a commercially unattractive ‘quid pro quo’ or a public liability. • Inevitably, the results are the chronic mortgage and rental stress, housing shortages and type mismatches, marketplace instability and homelessness identified in the NSW Government’s Housing Strategy Discussion Paper.

WESTERNSYDNEY.ORG.AU 6 The Dialogue’s broad aims and principles underpinning specific recommendations are as follows:

To help preserve the employment ▪ The NSW government should and economic role of the housing develop a Macarthur sector in GWS, using stimulus transport plan to accommodate spending to boost public asset feasibly amenable residential 1 housing growth in the Macarthur value, revenue streams and Priority Growth Area. improve the daily lives of tenants. ▪ The NSW government should Recommendations mandate 30 per cent social and ▪ The NSW government should invest affordable housing inclusionary immediately in widespread zoning for developments within 1 maintenance and renovation works km of new Sydney Metro stations. on existing social and affordable ▪ The NSW Land & Housing housing assets. Corporation to work in conjunction ▪ DPIE and NSW Treasury to jointly with TfNSW and Sydney Metro on examine the economic risks an urban renewal strategy for the associated with volatility in area, to coincide with residential construction, including the future northern extension of related business investment and Sydney Metro Greater West. jobs in trades, , and transport. To hasten the transition towards CHP sector management of social housing, To clarify and better match the promote the investment profile of housing market’s ‘supply and social and affordable housing and facilitate more innovative delivery of demand’ parameters, particularly in 3 projects and client services. 2GWS areas, and incorporate transparency of demand type, Recommendation

location and associated housing ▪ The NSW Government develop a plan amenity/services, not mere to transfer $5 billion of GWS public dwelling volume. housing stock to the Community Housing Provider sector, in five $1 Recommendations billion tranches. ▪ NSW government should, when available, publish its updated data for post COVID-19 population and housing growth, and facilitate a collaborative recalibration of ‘supply and demand’ parameters within the housing sector. WESTERNSYDNEY.ORG.AU 7 To make better use of existing public To make housing affordability, and land and housing resources, and equity of housing amenity (including better understand and meet associated services), a defining 4community needs, to enhance 5ambition and characteristic of the diversity, emergency NSW Housing Strategy. responsiveness, creativity, cultural Recommendations appropriateness and resilience in housing options. ▪ Government to provide a Clear definition of ‘affordable’ and set Recommendations enforceable targets so developers ▪ NSW government to use the HRG’s have clear expectations and ‘public land’ mapping project as a obligations. pilot to bring councils, state agencies ▪ NSW Housing Strategy to consider and other institutional landowners how low- and middle-income earners into a discussion with CHPs, will not fall between the gaps of developers, and financiers to social and affordable housing by promote partnerships and greater investing in build-to-rent collaboration on how to best utilise options. available government land. ▪ NSW government implement multi- To build-in principles of tenure housing communities to sustainability and liveability to the gradate the current disruptive gap in policy framework surrounding base level social housing rent and 6 housing in NSW. average market rent. Recommendations ▪ NSW Government to actively support Aboriginal Land Councils in becoming ▪ The NSW Government to review and key participatory components of the update the BASIX standards to be NSW Housing Strategy. applicable for social and affordable housing schemes ▪ NSW government should continue initiatives to utilise dwellings made ▪ The NSW Government to create vacant by COVID-19, accommodating mandatory green space different emergency and short-term requirements for all new social and imperatives until an adequate supply affordable housing developments of bespoke shelters is permanently ▪ Increase the implementation of available. universally designed homes by 2 per ▪ The Dialogue encourages the NSW cent per year for the duration of the government to fund the first NSW Housing Strategy. Education First Youth Foyers in GWS to house vulnerable youth in GWS.

WESTERNSYDNEY.ORG.AU 8 HOUSING FOR GWS.

Three years ago Premier Gladys Berejiklian vowed that her government would address the state’s housing affordability crisis, declaring it “the biggest issue people have across the state”1. Following this, in 2019 the Premier’s Priorities focused on ‘breaking the cycle of homelessness in half by 2025’2. As the voice of Greater Western Sydney, the Dialogue applauds the Premier’s leadership during the unprecedent times of COVID-19 and acknowledges the rapidly shifting priorities of government at present. While there are no quick fixes in this space, we note that housing affordability was an issue upon which the Premier wished for her government to be judged, and three years on it remains an area where there is much to do. Housing has always been a key concern for GWS, as one of ’s fastest-growing regions, spanning from , Cumberland, Fairfield, Canterbury-, Liverpool, Campbelltown, Penrith, , Camden, Wollondilly, the Hills and Hawkesbury through to the Blue Mountains. Home to over 2.5 million people, the most culturally diverse region in Australia and a growing economic mix, the region has vast potential. Before the devastating impact of COVID-19, housing was already at the top of the Dialogue’s agenda. In December 2019, the Dialogue brought together the Housing Reference Group (HRG), a cohort comprising many diverse contributors to social and affordable housing within GWS. Perspectives are drawn from Community Housing Providers (CHPs), academia, the banking and finance sector, professional services firms, local councils, Aboriginal Land Councils and various state and federal government agencies. The HRG has provided insight on the cohesive approach needed to address housing in GWS, and for all of NSW. Regular consultation with the group has shaped the focus of this submission, as the Dialogue believes the best way forward in overcoming our housing dilemmas are direct conversations with communities, and tailoring solutions to their specific needs. This cannot be a one-size-fits-all approach. By applying the key themes of Supply, Diversity, Affordability and Resilience within the GWS context, the Dialogue aims to expose priority areas, bring forward innovative ideas and boost the economy of GWS, to deliver more affordable housing, jobs and economic value to the region.

WESTERNSYDNEY.ORG.AU 9 ECONOMIC IMPORTANCE OF HOUSING TO GWS

Development in GWS provides invaluable benefit to the community and economy. In the current economic climate, with the push to fast-track infrastructure and boost employment, supporting the housing supply pipeline in GWS is one of the most obvious ways to promote jobs and economic activity. The construction sector generates the most jobs and produces some of the highest value-added economic activity in the region3. Nearly 3,500 additional jobs were added in residential construction between 2013 – 20194, with thousands more in related retail, transport and manufacturing.

Construction Employment % (2018/19)

NSW 9.4 GSW 12 Campbelltown 9.9 Liverpool 7.7 14.5 Cumberland 10.4 Parramatta 11.8 Canterbury Bankstown 11.2 Fairfield 11.3 Blacktown 12.8 Penrith 14.7 Camden 19.8 17.6 Bluemountains 6.5 Hawkesbury 11.6

WESTERNSYDNEY.ORG.AU 10 The NSW Department of Planning, Industry and Environment (DPIE) also predicted that GWS would have the greatest increase of new housing supply between 2019-2024, underpinning a strong economic outlook for our region before the unprecedented global headwinds of 2020 struck.

New Housing Supply by Local Government Area, NSW Department of Planning Industry & Environment (January 2020)

The flow-on employment and business investment in construction-related manufacturing, transport and retail in GWS is immense, and while it is impossible to insulate every sector and community from economic shock, the region is dangerously exposed to a sudden and significant downturn in residential construction activity. COVID-19 has slowed job growth, and while the construction sector has not yet reached crisis point, all recent data on building approvals, new starts and completions, and housing finance applications points to a downturn in housing construction nation-wide that will hit GWS particularly hard.

WESTERNSYDNEY.ORG.AU 11 The Dialogue has feared for some time that such a shock would hit GWS harder than most parts of Australia, and there is an urgent need now for stimulus measures to ensure an adequate level of activity in residential construction to mitigate a looming loss of jobs and investment. The Dialogue notes that to date, no applications have been accepted for the federal HomeBuilder scheme in NSW5 and submits that more demonstrably effective stimulus measures for the construction sector are needed. Given that the region’s most recent housing construction boom was driven by sustained migration-fueled population growth, in the near term it is likely that investing in maintenance and renovations to the state’s existing stock of social and affordable housing will provide the most immediate support for construction jobs. There is also a strong case for federal investment in widespread maintenance of state-owned and CHP sector housing stock. We note that at both federal and state level, the economy simply cannot wait until budgets are handed down later this year for such stimulus to begin to flow. Regardless of macroeconomic circumstances, a policy framework which seeks to strike the appropriate levels of supply and diversity in housing stock is important if we want to build-in economic resilience to our communities. The Dialogue applauds the NSW Housing Strategy’s focus on homelessness, social and affordable housing, and housing affordability and firmly believe that diversity in housing supply is critical to meet the obvious diversity in demand. It is important that we move past the tendency for housing policy to prop up private demand. Rather, the Dialogue sees the NSW Housing Strategy as an opportunity to deliver a housing policy framework that supports diversity in demand. Designed properly, it can help safeguard our construction sector against the boom-bust nature of private demand, and in doing so, promote jobs and growth in GWS.

RECOMMENDATIONS (AIM 1)

▪ The NSW government invest ▪ DPIE works with NSW Treasury to immediately in widespread examine the economic risks associated maintenance and renovation works on with volatility in residential the state’s existing stock of social and construction, including related jobs in affordable housing. trades, manufacturing, retail and transport.

WESTERNSYDNEY.ORG.AU 12 RENEWAL & MAINTENANCE OF THE CURRENT HOUSING SUPPLY.

New housing types and tenures are important, but the NSW Housing Strategy must make sure that existing supply of housing is adequately maintained. One in five public housing tenants live in dwellings that do not meet acceptable standards in Australia6. There is a push by the sector for more funding to renew housing stock to enhance amenity, increase or unlock land values, in turn shoring up revenue streams and catering to the current needs of the community7. This will also take pressure off CHPs currently managing homes that are falling behind maintenance schedules and reduce government costs by preempting the need to rebuild whole social and affordable housing developments. Innovative alternatives to demolition have been used around the world, examples include the Grand Parc Bordeaux in France, DeFlat Kleiburg in Amsterdam and Hill Estate in Sheffield. There is nothing preventing such innovative and cost-effective solutions to be attempted in Australia. Landcom has shown leadership in this field with its repurposing of the disused Health Centre, as affordable housing for elderly female residents. In responding directly to the “local 1,500 women aged 55 and over in the Northern Beaches who are in housing stress and at risk of homelessness due to family breakdown, underemployment and a lack of superannuation”8, the building adroitly meets the LGA’s precise needs. This project is a prime example of the potential for CHP, government and developer tri-partnership possibilities. The NSW Housing Strategy provides an opportunity for many such ground-breaking housing renewal approaches. As the population increases and land becomes more valuable than ever, retrofitting and utilising whatever is already available is eminently sensible.

WESTERNSYDNEY.ORG.AU 13 SUPPORTING CHPs TO REACH THEIR POTENTIAL.

There is also a large push needed from government to help attract and sustain institutional investment in affordable housing. The NSW Housing Strategy is an opportunity to position social and affordable housing in the state as a secure, reliable investment backed by a stable and principled policy framework. Central to this, the Dialogue strongly supports an increasing influence and expanding role of community housing providers in developing and managing social and affordable housing. The extension of selected CHP Leases from five to 20 years earlier this year, and another successful bond issuance through NHFIC in June 2020, shows a clear acknowledgement within state and federal government that tier one CHPs are up to the task of not only managing the complex needs of tenants, but also leveraging balance sheets to expand supply. A contestable large-scale transfer of government-owned housing assets to the CHP sector is one bold idea to now trigger a step change in the commercial scale of the sector that the Dialogue has previously championed. With a sudden drop in private housing demand and the spectre of a protracted economic downturn, the Dialogue reiterates this recommendation.

RECOMMENDATION (AIM 2) ▪ To stimulate a move to scale, the NSW Government to transfer $5 billion of its Western Sydney public housing stock to the community sector, in five $1 billion tranches9.

WESTERNSYDNEY.ORG.AU 14 SUPPLY – UNDERSUPPLY & OVERDEMAND.

The NSW Housing Strategy points out that at best, the supply of all housing typologies falls well short of the lowest estimates of demand. It is well-known that the current supply of social and affordable housing in Australia is inadequate for both current and future demand, and this is particularly evident in GWS. However, the Dialogue must emphasise that an increase in supply cannot be the only solution, a point well and truly illustrated during the most recent population and property boom in Sydney. Addressing supply only misses the opportunity to simultaneously address affordable diversity of stock. The NSW Housing Strategy appears to be taking a multi-faceted approach to supply, which is both timely and encouraging. We understand the NSW Government is in the process of updating data on current and projected population growth and associated forward demand for housing and infrastructure, adjusted for the sudden global shock of COVID-19. Sharing this data and the assumptions underpinning it with the community will be important to fostering a collaborative approach to the multitude of policy problems (housing and other) we now face.

NSW Housing Strategy Discussion Paper 2020

WESTERNSYDNEY.ORG.AU 15 The under-supply of diverse housing stock in GWS is immense, with the current social and affordable housing supply only meeting 40.6 per cent of the total demand, resulting in almost 6,500 additional social and affordable housing dwellings being needed per year to meet the demand forecast by 202610. Of the 46,000 social and affordable housing dwellings in GWS there was a demand for over 114,000,a shortfall of more than 67,000 homes. Local government areas of Cumberland, Blacktown and Fairfield have some of the highest levels of unmet demand, while Blacktown, Parramatta, Liverpool, and the Hills are all in the top five Sydney LGAs in terms of forecast demand for new dwellings in the next 5 years11. These future developments must cater to the region’s social and affordable housing needs. Pre COVID-19 population forecasts from DPIE foreshadowed significant population increases for GWS. NSW was forecast to increase by 26 per cent to 2041, Greater Sydney by 35 per cent, while GWS had an overall predicted population increase of 49 per cent12. LGAs such as Camden expected an incredible 283 per cent growth, Liverpool 108 per cent and Penrith 83 per cent population growth. The Dialogue notes that the devastating impact of COVID-19 may halt or slow the large influx of population growth from overseas that was fueling much of the region’s growth. Regardless, pressure has, and no doubt will continue to increase upon the social and affordable housing sector, via declining incomes, increasing and homelessness. With over 14,000 individuals homeless in 2016, GWS was already experiencing greater levels than the state and national rates13. The further impact COVID- 19 will have on the region‘s most housing-vulnerable is fretful. Tackling affordability and creating much needed supply is evidently a complex task, with no one-fit answer. The Dialogue’s consultation with the sector has suggested that collaboration is needed by government and private investment sectors to help developers, landowners and CHPs create more diverse and affordable housing.

RECOMMENDATION (AIM 3) ▪ The NSW Government publish updated data inputs for post COVID-19 population and housing growth to encourage collaboration with the community and private sector.

WESTERNSYDNEY.ORG.AU 16 UNLOCKING LOCATIONS & OPPORTUNITY.

Pressure on our region’s infrastructure can be alleviated by ensuring that new diverse housing supply is delivered in the most appropriate locations. The location of social and affordable housing in areas with poor transport connectivity and relatively low access to economic opportunity has historically shown to exacerbate disadvantage and must be avoided in any future housing strategy. With Sydney in the midst of an infrastructure boom, there will be opportunities in the coming years to shape new transit-oriented development with different approaches to housing diversity, and there also exists many opportunities to renew established precincts through innovative uses of government and council-owned land. Two key themes explored by the Dialogue’s HRG with regards to identifying and unlocking new housing opportunities in the region included proximity to services, and transport and availability of government or council-owned land.

PROXIMITY – SERVICES & TRANSPORT.

Housing cannot stand on its own. Services, facilities, and the existing community need to be accessible through adequate public transport and infrastructure. Social housing needs to be close enough for residents to walk to bus stops and train stations as private vehicles may not always be available. Members of the HRG agreed that new social housing needed to be within 1km of train stations and 500m of a bus stop to ensure active participation in the community. In consultation with the GWS community, affordable housing needs to have adequate room for parking, well connected roads to town centres and efficient routes to and from employment. These considerations were adequately weighted during previous housing booms across the region, with compounding impacts over time evident to this day and prohibitively expensive to remedy. As the Greater Sydney Commission (GSC) ‘Western City District Plan – connecting communities’ thoroughly evidences, housing supply must be coordinated with local infrastructure to create liveable, walkable, accessible, safe, connected neighbourhoods, close to services and public transport. This will mean that some areas are not appropriate for additional housing due to natural or amenity constraints, or lack of access14.

WESTERNSYDNEY.ORG.AU 17 Future housing supply mapped by the GSC details the need for housing to be developed and located closer to public transport and local centres. This not only benefits the community; it increases the value proposition for investment. While growth areas in Sydney’s north west and south west will benefit from proximity to new Metro services and jobs in the and Aerotropolis precinct, the Dialogue harbours serious concerns around the scale of development occurring and proposed for the Macarthur Priority Land Release area, in the apparent absence of corresponding major public transport and road improvements in the Wollondilly Shire and Campbelltown City Council areas. One only needs to observe the chronic daily congestion already experienced between Narellan and Campbelltown, to get a sense of the negative impact of built-in car dependency in residential growth centres. A targeted transport infrastructure package for the Macarthur Region, including extending electrified rail, should be considered by the NSW Government to support the approval.

RECOMMENDATION (AIM 3) ▪ Develop a Macarthur Region transport plan to accommodate residential growth in Campbelltown, Wollondilly and Camden Council areas.

Greater Sydney Commission, NSW Department of Planning and Environment and NSW Government Housing Affordability Package (March 2018)

WESTERNSYDNEY.ORG.AU 18 It is vital that the NSW Housing Strategy integrates transport planning with future social and affordable housing opportunities. Specifically to GWS, , Greater West and Aerotropolis sites must be seriously considered for social and affordable housing opportunities, unlocking access to the economic benefits this new infrastructure will have for the community15. With substantial taxpayer funded investment in new metro stations on the Metro South West, Metro West and Metro Greater West projects, the Dialogue believes that associated transit oriented development around station precincts must strike an appropriate balance between community values and expectations for the provision of social and affordable housing, and the opportunity to recoup project costs through private development revenue. The externalities associated with unaffordability, social housing under-supply and homelessness need to be weighted appropriately in the NSW government’s approach to inclusionary zoning around these new station precincts, and the Dialogue believes there are opportunities to be much more ambitious, particularly in the face of a downturn in private housing demand. We have previously advocated an inclusionary zoning target of 30 per cent social and affordable housing for development within 1km of new Metro stations and reiterate that position. RECOMMENDATION (AIM 3) ▪ Mandate a 30% inclusionary zoning target for development within 1km of new Metro stations in the Sydney area.

The Dialogue specifically notes the future opportunity to renew precincts in the Mount Druitt area, with the delivery of the northern extension of Sydney Metro Greater West from St Marys to Tallawong via Marsden Park and Schofields. The Mount Druitt area features many of Sydney’s most profoundly disadvantaged communities and some of the highest concentrations of social housing stock in the state. It is important that this Metro extension delivers at least two new stations in the Mount Druitt corridor to create urban renewal opportunities and provide new access to job and education opportunities for these communities. While this project is some years away, government should be scoping options for asset recycling and urban transformation that can be delivered in parallel. Especially within GWS, reducing travel times to places of education and work increases productivity, allows more time for individuals to be a part of their communities and ensures the rest of Sydney can stay connected to the West.

RECOMMENDATION (AIM 3) ▪ LAHC work in conjunction with TfNSW and Sydney Metro on an urban renewal strategy for the Mount Druitt area to coincide with the northern extension of Sydney Metro Greater West.

WESTERNSYDNEY.ORG.AU 19 AVAILABILITY – LAND MAPPING OF BLACKTOWN AND CANTERBURY-BANKSTOWN LGAS UTILISING AVAILABLE GOVERNMENT OWNED LAND.

GWS provides extensive possibilities for social and affordable housing developments, and there is a clear appetite among all stakeholders to establish and maintain an expansive project pipeline. The NSW government’s support for better utilisation of government-owned land for housing is a positive and encouraging shift of focus. However, the lack of awareness of land availability was a clear issue that arose from the Dialogue’s HRG discussions. If non- government stakeholders are to play a role in delivering new diverse housing stock, they need greater visibility on where development opportunities are, to better coordinate, form partnerships and put forward proposals for renewal or alternative land uses. Arising from these discussions, the Dialogue in collaboration with Landcom has begun mapping areas that are suitable for future social and affordable housing dwellings. The project is effectively an audit of government and council owned land across GWS that can be used for new social and affordable housing. The LGAs of Blacktown and Canterbury-Bankstown have been used for the pilot mapping and show promising results (sample mapping images are provided to the right).

WESTERNSYDNEY.ORG.AU 20 The process applied filters primarily RECOMMENDATION (AIM 3) for proximity to transport and town ▪ Government to use the HRG mapping centres, ownership by state government project as a pilot to bring councils, state or local council, and density of existing agencies and other institutional social housing, providing a baseline landowners into a discussion with CHPs, number for developable land by area and developers, and financiers to promote lots. Knowing where the available land is partnerships & collaboration. and what it surrounds adds great value to institutional investors and developers. This initiative also gives council and CHPs greater confidence to plan and collaborate on future opportunities within GWS. This mapping activity was well received by the HRG and noted to gain much government interest. It also highlighted the important role local councils and Aboriginal Land Councils can play for the entire housing sector, especially as these landowners do not have holding costs. The Government needs to push for these land holders to become serious players in the housing sector, particularly given their unique ability to encourage and shape culturally competent housing.

WESTERNSYDNEY.ORG.AU 21 DIVERSITY ONE OF THE MOST DIVERSE REGIONS, WITH THE LEAST DIVERSE HOUSING OPTIONS.

The rhetoric of simply increasing supply to solve housing affordability is an inadequate response. What is needed is a tactful approach to build diversity in supply - social, affordable, and private housing. This approach has been strongly supported by HRG participants, especially our CHPs. GWS is the most diverse region in NSW, and home to the largest indigenous population in Australia. Sixty per cent of new immigrants arriving in Australia call GWS home. As a result, GWS residents come from more than 170 countries and speak over 100 different languages16. The region has embraced this rich cultural tapestry, but with such diversity also comes a range of unique needs to be met.

RESHAPING TENURE AND TYPOLOGIES IN THE WEST.

There is an abundance of evidence that supports the necessity of adopting diverse housing policies to truly meet a community’s diverse needs. For most regions it would be appropriate for there to be different housing options which offer a choice of dwelling size, tenure type and price17. Diverse housing also ensures that private, affordable, and social housing does not become segregated or isolated. The Western Sydney Regional Organisation of Councils (WSROC) noted that the bulk of the housing stock in Western Sydney is increasingly unsuited to the changing demographic composition of the region18.

WESTERNSYDNEY.ORG.AU 22 Western City District projected household structure 2011–2036, NSW Department of Planning and Environment, 2016

As the population increases and household structures evolve, homes must be created to house people appropriately, especially in GWS. The Housing Strategy provides an ideal long-term policy framework in which to recognise and enshrine this ambition, and which can evolve over time as demographics shift. With the decrease in home ownership rates across the state and more people moving towards renting and flexible housing arrangements, an evolving population must be met with dynamic housing typologies. Multi-unit dwellings can provide important housing for seniors and more affordable homes for young people, but also needs to be balanced with medium density row, terrace and villa homes that provide diversity, especially for larger households19.

Typical social housing vs average private rent paid in GWS $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 Social housing tenant* Average rent across GWS

WESTERNSYDNEY.ORG.AU 23 There is paramount need for the NSW The ‘Latte Line’ that delineates Sydney’s Housing Strategy to advance the case for a east and west shows that those in GWS are greater supply in affordable housing more likely to be mortgagees and have typologies. The gap between base level relatively similar rates of outright home social housing and average private market ownership and renting. This does not mean rent is a barrier to breaking the cycle of the NSW Housing Strategy needs to welfare dependence. As the graph above increase home ownership in the West, but portrays, the difference is so vast it gives it does show that more diverse housing little hope to those in social housing to tenures are needed to continue housing ascend the economic ladder. Investing in those renting and to make it more the economic progress of aspirational affordable to do so. social housing tenants is a no-brainer, given the whole-of-government benefits associated with transitioning tenants out of social housing and towards private rental and home ownership. Multi-tenure development can also be a hedge against demographic homogenisation as neighbourhoods gentrify. Development throughout the UK and as observed during the Dialogue’s East London Study Tour, shows that mixed tenure communities should be an essential component of both new housing development and in the redevelopment of existing mono-tenure estates . This mixed tenure can also help reduce the stigma of social and affordable housing, which can ABS 2018, ABS TEND Tenure Type, 2016, average of impact the salability of adjacent private SA2 areas housing within a development. It also provides flexibility for residents to change tenures or housing types without leaving RECOMMENDATION (AIM 4) beloved local communities, especially important to many in GWS. ▪ Government works towards implementing multi-tenure housing communities to meet gap in base level social housing rent and average market rent – including key worker housing schemes, build to rent, rent to own and other sub-market typologies.

WESTERNSYDNEY.ORG.AU 24 CREATING DIVERSE HOMES FOR A DIVERSE POPULATION.

The NSW Housing Strategy needs to create homes, not just houses. As GWS is one of the most diverse regions in NSW our housing options must be able to cater to it appropriately. This means supporting CHPs and housing management facilities to be culturally competent and support tenancies appropriately, not only so management can respond to residents’ ongoing needs, but so homes are also designed with cultural competency in mind to begin with.

CULTURALLY COMPETENT HOMES.

Provision of appropriately designed, culturally sensitive accommodation across the various tenure types will be an important factor for the NSW Housing Strategy to consider. This is strongly recommended for Aboriginal housing supply, as GWS has double the number of Aboriginal households, at 4 per cent21, in comparison to Greater Sydney. Many live in atypically large family groups and need multi-bedroom homes to prevent overcrowding, and easy access to public transport for visiting extended family. Cultural competency within the housing sector is a significant factor raised in various consultations with community forums, and the NSW Housing Strategy has yet to fully explore or articulate how it can best be incorporated in the future. Not only within the built environment, but in leadership of the strategy, Aboriginal Land Councils must have a seat at the table. Aboriginal Land Councils play a vital part in leveraging land holdings to support their members to achieve more prosperous housing standards and ownership opportunities. Deerubbin Local Aboriginal Land Council of GWS has incredibly valuable land holdings but needs government support to properly leverage these in providing housing solutions.

RECOMMENDATION (AIM 4) ▪ The Government must support Aboriginal Land Councils to become a key component of the NSW Housing Strategy.

WESTERNSYDNEY.ORG.AU 25 EMERGENCY HOUSING – HOMELESSNESS AND VICTIMS OF FAMILY DOMESTIC VIOLENCE (FDV).

Housing must also cater to those These startling figures were registered who do not have a place to call pre COVID-19, and both the Dialogue and home. the broader HRG is deeply concerned about what is to come, if appropriate Emergency housing for the homeless and intervention is not made. those experiencing FDV is of critical need Furthermore, in 2018 there were 7,221 in GWS. The current NSW Housing females who were reported as victims of Strategy fails to adequately establish how domestic violence related assaults in it will combat homelessness and provide GWS24. GWS accounts for 51 per cent of active transient housing solutions. the Greater Sydney population, but about As the full economic impacts of COVID-19 59 per cent of all reported incidents of hit, and federal stimulus payments such domestic violence25. as JobSeeker and JobKeeper end, the Community consultation strongly echoes blight of unemployment and under- the need for more emergency housing employment will doubtless spread. It is for victims of FDV , especially with highly likely that an increase in evictions COVID-19 also now increasing incidence from private rental will increase rates. The 90-day use of apartments to homelessness. house the homeless during the pandemic In GWS it has historically increased at a highlights the potential of what can be rate far greater than the state and done utilising current infrastructure, national increase. In 2016, it was vacant housing blocks and adaptive estimated that there were over 14,000 policy. But there are still many empty people experiencing homelessness in hotels, hostels and apartment buildings Western Sydney, an increase of more that could be easily repurposed until than 5,000 people or 57.8 per cent since COVID-19 impacts subsided. There has 2011. This represents more than half of been strong support from the Greater Sydney’s homeless population22. government so far, which the Dialogue There are over 3,000 people experiencing applauds, however a focus must be homelessness in the Cumberland LGA specifically given in the Housing Strategy alone23. to those suffering undignified abuse and homelessness within the GWS region.

RECOMMENDATION (AIM 4) ▪ Government to use the HRG mapping project as a pilot to bring councils, state agencies and other institutional landowners into a discussion with CHPs, developers, and financiers to promote partnerships & collaboration.

WESTERNSYDNEY.ORG.AU 26 HOUSING FOR THE YOUTH OF GWS.

Finally regarding diversity, the Dialogue strongly enforces the need for the NSW Housing Strategy to consider the support and housing available for young people within the GWS region, especially being those most heavily impacted by COVID-19. Studies from ANU have found young adults are experiencing very high rates of housing stress, with around 44 per cent of people aged 18 to 24 years unable to pay their rent on time26. The Dialogue’s youth advisory committee Generation West strongly advocates for more accessible, affordable housing options. A survey conducted by Generation West ‘Understanding the Youth of Western Sydney’ found that the most pressing concerns of GWS youth are now housing affordability and future employment opportunities27. The significant increase in youth unemployment in GWS due to COVID-19 is a concern. Longstanding areas of disadvantage may be further impacted, with many young people struggling to attain education employment and hence being at increased risk of homelessness. In consultation with the Foyers Foundation, their youth emergency housing is a proven mechanism to support young people (aged 16-24) for gaining education, employment and life skills whilst having secure transitional accommodation. Evidence from Foyers in the UK, US and Victoria Australia, show Education First Youth Foyers produce positive outcomes28. The Foyers model aims to house, educate, employ and empower young people - this is the support needed in GWS. By focusing on these diverse and priority groups within GWS, the NSW Housing Strategy will ensure those most disadvantaged will not be left behind.

RECOMMENDATION (AIM 4) ▪ The Dialogue strongly supports the government funding of the first Education First Youth Foyers in GWS.

WESTERNSYDNEY.ORG.AU 27 UNAFFORDABILITY IN GWS.

Within two generations, social housing has gone from being to ‘welfare class’ housing, and the ‘graduation’ from social housing to affordable and open market housing is far out of reach for most. In the same timeframe, Sydney has become one of the world’s ‘global cities’ with growth in skilled migration and a booming professional services sector. Combined with the city’s sought-after amenity, these economic factors have seen the price of housing skyrocket in comparison with average earnings.

Bangura, M & Lee, C.L, 2019a, House price diffusion of housing submarkets in Greater Sydney & 2019b, The differential geography of housing affordability in Sydney: a disaggregated approach.

WESTERNSYDNEY.ORG.AU 28 A lack of inclusive growth has pushed many middle and lower-income earners further towards the margins. Across the Latte Line housing affordability differs in a number of ways. As shown in the map below, in 2016, the majority of median house prices by LGA for the west side of the line were below the Sydney average, while the median prices for the east side were above the average. GWS used to be a relatively affordable entry point for the Sydney housing market, however the general deterioration in housing affordability has been acutely felt in the region - especially as the annual income of the residents has only been growing by 1.29 per cent annually, whereas residents in the east have seen growth of 3.95 per cent, and those in the north 2.59 per cent. The disparities, not only regarding income, but education and employment, across the Latte Line - despite a significant amount of infrastructure and service spending in Sydney’s West in recent years - further emphasise that affordability in the GWS is not simply due to demand. Greater access to education and employment through transport and connection to more local town centres are long term investments that will help reduce unaffordability in the West. The gap between those in social housing, affordable housing and the private market is far too wide. This has often led to many in middle income brackets missing out, or those of lower socioeconomic status being given little incentive to push through to private ownership. 15.9 per cent of households in GWS are considered ‘low income’ households – earning less than $650 per week . With lower income rates than average and the anticipated COVID-19 economic downturn, now more than one third of NSW JobSeeker recipients reside in GWS . Local government areas of Fairfield, Campbelltown and Liverpool are experiencing some of the greatest surges in reliance on government assistance within the state. This has led, and will continue to drastically increase, rental and housing stress for the region.

Home in Western Sydney, Wentworth Community Housing & Western Sydney Community Forum (April 2019)

WESTERNSYDNEY.ORG.AU 29 Housing and rental stress levels are at the highest levels in GWS. Housing stress rates in GWS were at 14.6 per cent compared to Greater Sydney at 11.8 per cent. This corresponds to more than 110,000 households across GWS in 2016 paying far too much of their hard-earned income to sustain their homes31. Simultaneously, rental costs have increased at rates far higher than incomes, with the gap between income and price extending further in GWS, with 32.8 per cent of renting households in rental stress. More than 75,000 GWS households experienced rental stress in 2016, an increase from just over 60,000 in 201132. Without action these rates will certainly skyrocket. Yet for many developers the definition of ‘affordable’ was inconsistent and varies depending on region and LGA. Developers and CHPs need to understand what affordable means to government, investors and residents so that this priority can be met.

Home in Western Sydney, Wentworth Community Housing & Western Sydney Community Forum (April 2019)

RECOMMENDATIONS (AIM 5)

▪ Government to provide a Clear ▪ NSW Housing Strategy to consider definition of ‘affordable’ and set how low- and middle-income enforceable targets so developers earners will not fall between the have clear expectations and gaps of social and affordable obligations. housing by greater investing in build to rent options.

WESTERNSYDNEY.ORG.AU 30 RESILIENCE – SOCIAL & AFFORDABLE HOMES FOR THE WARMING FUTURE.

As the sector grows it must also adapt to the current and future climate. Since 1965 the mean maximum January temperature in GWS has increased over twice as much as it has in the rest of Sydney, and the number of January days over 35 degrees has grown ten times more33. Housing needs to be made to withstand greater heat and wild weather conditions and GWS needs longer- lasting homes. With so much of the current housing supply already needing maintenance, this is a matter of ______preemptive efficiency as well as basic 33Western Sydney Leadership Dialogue equity in living amenity. (December 2019) Greater Western Sydney’s Hot Issue, p3.

Ogge M Browne B Hughes 2018 The Australia Institute Climate and Energy Program, Heatwatch: Extreme Heat in Western Sydney November 2018

WESTERNSYDNEY.ORG.AU 31 One place for the Housing Strategy to look is BASIX34. Since its introduction in 2004, this has become a key tool in NSW for underwriting the sustainability of the built environment, and it must apply no less to social and affordable housing than any other. BASIX certification in the Development Application stage imposes minimum standards on a new home’s energy efficiency, water efficiency and thermal comfort. A 2015 review lifted targets, though some argued not enough. Shortcomings remain35, and as the Dialogue has argued previously, as well as even higher minimum standards, other timely BASIX improvements could include:

Helping Markets Eliminate the Sustainable Technology is Quickly ‘Split Incentive’ Problem: Changing and BASIX Must Too: Mandatory disclosure of a dwelling’s Current scoring in the three component energy performance on sale or lease, areas of Water, Energy, and Thermal and more public education about the Comfort take only limited account of long-term utilities savings in higher first-generation ‘sustainable living’ components like rainwater tanks and BASIX performance, are two ways the solar panels, and none of the latest system can help markets properly developments. The growing ubiquity of ‘price in’ the cost-benefit return for residential green technologies like developers. battery home storage, smart metering, household water recycling units and even Improved LGA Capacity for multi-dwelling, integrated utility Compliance Follow-up: trigeneration systems will soon demand a Improving a council’s capacity for major overhaul. checking and enforcing BASIX compliance would bolster the system.

RECOMMENDATION (AIM 6) ▪ The NSW Government review and update the BASIX standards to be applicable for social and affordable housing schemes.

WESTERNSYDNEY.ORG.AU 32 Having a base level of standards of design and efficiency of social and affordable housing will ensure that the new and current supply are keeping up with the resident’s and building’s needs. Not only must energy efficiency also be a focal point, so too must green space and urban cooling. Good quality design that as far as possible ‘knits’ or integrates with the existing urban fabric and existing community and is physically integrated with the surrounding communities through transport access and street connectivity, should be the standard set for the social and affordable housing boom . Far too often are social and affordable houses in GWS covered in brick and cement driveways. Public Health England’s research on health inequalities, found that there is significant and growing evidence of the health benefits of access to good quality green spaces, including improved mental health and wellbeing and increased longevity . New developments must be logically planned to combat heat in efficient ways, including incorporating the natural environment. Landcom’s Schofields development showcases action addressing the climatic effects of urban heat island and the need for more liveable green streets. These developments aim to deliver a significant increase in green canopy compared with more traditional developments .The image below shows the new Schofield site for greener homes by Landcom, compared to the cement and brick blocks across the road. This is a too-common sight in GWS, and the community continues to suffer from a lack of green infrastructure. Social and affordable housing in GWS should not be identified by this drab absence of green space.

WESTERNSYDNEY.ORG.AU 33 Universal design should also be considered by the NSW Housing Strategy. The planning model of ‘universal design’ for residential living strives to augment the liveability, comfort and safety of the home39 through creating spaces which can be accessed, used, and understood by all people, regardless of age, size, ability or disability40. Creating homes that suit people’s needs rather than adhering to developers’ desires and duplicating inadequate homes at mass scales will bring positive economic outcomes for residents and government that will greatly outweigh the increased cost of building such homes to a life-cycle-housing standard. These homes do not only benefit the elderly or disabled. If just 20 per cent of Australia’s housing stock was universally designed, there would be savings to the health care system of $37-$54M per year41 due to the aforementioned health benefits, shorter hospital stays and reduced hospital visits from falls or inadequate housing plans42. Life-cycle-housing positively influences social inclusion and health outcomes of the residences, whilst also saving residents and governments money, which could then be better directed in the NSW Housing Strategy. The NSW Housing Strategy must focus on the needs of residents when creating and investing towards their homes.

RECOMMENDATIONS (AIM 6)

▪ The NSW Government create mandatory ▪ Increase the implementation of green space requirements for all new universally designed homes by 2% per social and affordable housing year for the duration of the NSW developments. Housing Strategy.

WESTERNSYDNEY.ORG.AU 34 CONCLUSION AND SUMMARY OF RECOMMENDATIONS.

With all of this in consideration, accompanied by the promising outline of the NSW Housing Strategy, this discussion is a once-in-a-lifetime opportunity to reshape the housing sector. The Dialogue strongly emphasises the importance of Federal policy and funding programs to improve system outcomes and strengthen the NSW Housing Strategy’s impact. The Dialogue also emphasises that, although there are many issues to be resolved due to the current COVID-19 crisis, policy settings cannot only be made entirely in response to the pandemic. Whilst COVID-19 factors must be addressed, long term policies are needed, in a holistic response to the housing sector issues raised. To ensure this strategy adheres to all those issues and the needs of the sector, the Dialogue urges NSW Housing to seriously consider the Dialogue’s recommendations. Embracing these recommendations will help ensure GWS is a region that is liveable, affordable and desirable for all. Social and affordable housing is not only a home for the individual, and a necessity for the community. It is an investment in the future of GWS.

WESTERNSYDNEY.ORG.AU 35 ENDNOTES.

1 Sean Nicholls and James Robertson (January 2017) ‘Gladys Berejiklian declares housing affordability ‘the biggest issue’ The Sydney Morning Herald.

2 NSW Government (2019) Premier’s Priorities, Breaking the Cycle – Reducing Homelessness.

3 National Institute of Economic and Industry Research (NIEIR, 2019) Compiled and presented in economy.id.

4 Ibid, Breakdown of Greater Western Sydney LGA data by the Western Sydney Leadership Dialogue.

5 Revenue NSW (15 July 2020) HomeBuilder Program, News, and media releases.

6 Report on Government Services 2020, ‘Chapter 18 Housing – Dwelling condition ’, Productivity Commission. See also Daniel Pockett (July 2020) ‘‘Vertical cruise ships’? Here’s how we can remake housing towers to be safer and better places to live’ The Conversation.

7 Judith Stubbs and Associates, Best Practice in Multi-Tenure Development: Part A: Australian Case Studies (July 2017) p18.

8 Landcom (2020) Queenscliff.

9 Western Sydney Leadership Dialogue has previously recommended this and continue to advocate for such change. See, Western Sydney Leadership Dialogue, Western Sydney meets East London (2019).

10 Wentworth Housing & Western Sydney Community Forum (April 2019).

11 NSW Department of Planning, Industry and Environment (January 2020) ‘Top five Local Government Areas (LGAs) for new housing supply’.

12 NSW Department of Planning, Industry and Environment (December 2019) NSW 2019 Population Predictions.

13 Wentworth Community Housing and Western Sydney Community Forum (April 2019).

14 Greater Sydney Commission (March 2018) Our Greater Sydney 2056 Western City District Plan – connecting communities.

15 CHIA October 2018) Community Housing Industry Association NSW & the Western Sydney City Deal Strategic Alliance of Community Housing Providers, Submission to the Western Sydney Aerotropolis Land Use and Infrastructure Implementation Plan. CHIA recommends ‘a much greater focus on the delivery of low cost and submarket rental housing in any plans for the Aerotropolis and Western Parkland City’.

16 Western Sydney (March 2020) About Greater Western Sydney, Our Population.

17 Senate Select Committee on Housing Affordability in Australia (June 2008) A good house is hard to find: Housing affordability in Australia – Chapter 6: Housing diversity, 6.1.

18 Senate Select Committee on Housing Affordability in Australia (June 2008) A good house is hard to find: Housing affordability in Australia – Chapter 6: Housing Diversity, 6.6.

19 Greater Sydney Commission (March 2018) Our Greater Sydney 2056 Western City District Plan – connecting communities.

20 Judith Stubbs and Associates, Best Practice in Multi-Tenure Development: Part A: Australian Case Studies (July 2017) p28.

WESTERNSYDNEY.ORG.AU 36 21 NSW Housing Strategy 2020, Number and portion of Aboriginal Households by district and region.

22 Home in Western Sydney, Wentworth Community Housing and Western Sydney Community Forum (April 2019).

23 Ibid.

24 WESTIR (July 2019) Women in Greater Western Sydney, Census 2016 Topic Paper, p8.

25 Western Sydney Leadership Dialogue (March 2019) ‘Putting domestic and family violence on the agenda’, p4.

26 Biddle, N, Edwards, B, Gray, M & Sollis, K (May 2020) ‘COVID-19 and mortgage and rental payments: May 2020’ Australian National University, p6.

27 (2020) Understanding the Youth of Western Sydney, Generation West. This survey involved 116 respondents and may not reflect all the GWS region.

28 Each Youth Foyer costs around $10m to build (40 studio style apartments and communal living areas) and approximately $1.2m per annum to operate. See, KPMG (June 2019) Education First Youth Foyers, Economic Evaluation.

29 Australian Bureau of Statistics, Census of Population and Housing, 2016 (Enumerated data) Compiled presented in profile.id.

30 In May 2020 164,155 of 476,718 jobseeker recipients in NSW resided in GWS. Department of Social Services - JobSeeker and Youth Allowance recipients - monthly profile via data.gov.au. Compiled and presented by .id.

31 Wentworth Community Housing and Western Sydney Community Forum (April 2019) Home in Western Sydney Housing Affordability and Homelessness Insights.

32 Wentworth Community Housing and Western Sydney Community Forum (April 2019).

33 Western Sydney Leadership Dialogue (December 2019) Greater Western Sydney’s Hot Issue, p3.

34 NSW Government, BASIX, See also, Western Sydney Leadership Dialogue (December 2019) Greater Western Sydney’s Hot Issue.

35 Ding L & et al 2019, Validating and improving the BASIX energy assessment tool for low-carbon dwellings Technical report March 2019.

36 Judith Stubbs and Associates, Best Practice in Multi-Tenure Development: Part A: Australian Case Studies (July 2017) p22. 37 Public Health England (September 2014) ‘Local action on health inequalities: Improving access to green spaces’ UCL Institute of Health Equity.

38 Landcom (2020) Schofields.

39 Australian Government Department of Social Services 2010.

40 Greater Sydney Commission, 2017; Liveable Housing Australia 2012.

41 Greater Sydney Commission, 2017.

42 Australian Government Department of Social Services 2010.

WESTERNSYDNEY.ORG.AU 37 C O N T A C T [email protected] [email protected] (02) 8318 8028