Paying for Affordable Housing in Different Market Contexts

In this study six recently completed affordable housing developments across Australia are analysed to ascertain how affordable housing project costs, revenues and subsidies interact to produce affordable housing. Using the project data, an interactive modelling tool is developed. The ‘Affordable Housing Assessment Tool’ (AHAT) is designed to calculate the impact of different cost and subsidy parameters on housing affordability for the various types of lower income households in need of affordable housing. The research reveals the diverse and bespoke funding arrangements adopted by providers in the study. This has resulted in affordable housing project outcomes being driven by funding opportunities rather than by defined housing needs. The AHAT uses housing needs to refocus decision-making on what housing outcomes are required and on what subsidy levers can achieve those outcomes