Time to put housing at the centre of the infrastructure ecosystem

Housing is a basic human need, but it is not yet universally available as a basic human right. It should be.

Unlike other crises, the global housing crisis is not centred around a reduction in resources or economic downturn. Rather, it is a result of housing provision not keeping up with economic expansion and is tied to growing inequity. According to the World Bank, 1.6 billion people globally are expected to be impacted by housing shortages by 2025.

GHD's recently released CROSSROADS research – an exploration of intergenerational equity through an infrastructure lens – found housing affordability to be a major concern for many communities globally, affecting citizens’ ability to afford other essentials and driving a willingness to compromise on location and amenities.

Across all 10 countries surveyed, respondents identified housing affordability and cost of living as a top-three priority. Together with environmental and transport challenges, communities are under increasing cost pressures.

Despite climate uncertainty and the prevalence of extreme weather events such as widespread flooding in recent years, financial pressures are now the dominant concern throughout our society across all generations.

And as we've read widely in the media – and touched on at CEDA's recent Tasmania in focus event, the housing situation in Tasmania is particularly grim. Over the past five years, house prices in the state have skyrocketed. According to Australia’s most recent Census, Tasmania experienced the largest increase in homelessness in Australia in the five years to 2021 at 45 per cent. And the Tenants' Union of Tasmania says the average Tasmanian renter is paying $6200 more to keep a roof over their head than five years ago.

CROSSROADS indicates that globally, people are reconsidering where and how they live. Sixty-three per cent of people said they were prepared to pay more to live near public transport, work, schools, hospitals and amenities, even if it meant a change in lifestyle.

Tasmania itself presents a melting pot of challenges – many linked to the shifting demographic. Population growth by births and deaths is declining, so the state is reliant on migration. However, new arrivals, particularly migrants, typically arrive with very little, and available housing at the price point they need or the type they need has wait lists over a year long, even for priority applicants.

Our CROSSROADS data reinforces the demand in Tasmania for more affordable and diverse housing options. This aligns with the findings from Homes Tasmania’s Tasmanian Housing Strategy for 2023-2043, which highlights a “decrease in the diversity of the homes being built in Tasmania” from 2001-2021, as single-dwelling houses have increasingly become the dominant housing typology, while medium and high-density housing options have dwindled, resulting in a lack of fit-for-purpose housing for Tasmania’s ageing demographic.

So what can we do in response? Housing models that deserve further attention include more social housing, affordable private rentals and the release of affordable land parcels, supported by more accessible home ownership assistance programs.

Our CROSSROADS research shows that Tasmanians are amenable to these options, with 60 per cent of respondents saying that they would be open to living in a community with both social (government owned/subsidised) and traditional (privately-owned) housing. 

There’s widespread recognition that if this issue remains unaddressed, there could well be dire consequences for Tasmania’s economic and social outlook. Key workers who cannot afford housing in the state will look elsewhere for job opportunities, and the rate of homelessness may continue to rise. 

Pleasingly, the Tasmanian Government is already taking action in some areas, including the $15 million investment in teacher accommodation and its recent purchase of the Fountainside Hotel to house health workers. However, it’s clear that more needs to be done, with support and collaboration across the housing industry to innovate and comprehensively address these challenges.

It's also worth noting that with the emphasis of governments and media on housing as an end state, it can be easy to forget the role that related challenges have in delivering on the housing ecosystem – challenges like climate change, social impact, environmental protection and reliable and affordable public transport. Housing is inextricably linked to the infrastructure that enables it: roads and rail, water and utilities, transitioning energy systems and jobs, health and wellbeing.

In other words, working towards solving the complex housing crisis cannot be done in isolation. It is imperative that traditionally siloed industry sectors connect, share and collaborate on this complex challenge.