The impact of Local Government on housing affordability

Local Government can potentially have a significant impact on housing affordability especially in Geelong where there is significant land supply and the municipality is not ‘locked’ by adjacent populated municipalities.

Local Government can increase demand for housing generally by virtue of its planning and development decisions.  Through inputs into regional planning local government contributes to regional growth and development and the subsequent demand for housing.  This includes infrastructure and transport.

Local Government has a major impact on housing affordability through its regulation of supply of land for development.  Under-supply of land tends to increase housing prices due to unmet demand.  Local government also influences value through zoning regulation of lot sizes and urban design and urban amenity.

Reasons for housing affordability becoming an issue for Local Government

Across Victoria housing affordability is at its lowest level in 20 years. Compared to other Australian States Victoria has the lowest level of social housing (see ‘Supply of Social Housing in Geelong’ below). This low level of current social housing stock reflects decades of reduced expenditure on social housing. As a result much current social housing stock is poorly maintained and any available social housing is usually allocated to those households who have the highest and most complex needs. These trends have contributed to negative community attitudes to social housing in many areas of Victoria.

This lack of investment by the State Government in social housing means that Local Government will play an increasingly important role in planning for social housing into the future. As the closest level of government to the people Local Government is aware of community needs and well connected with local organisations that respond to those needs.

Recent changes made by the State Government to the Victorian Planning and Environment Act 1987 also now allow Local Governments to negotiate with developers about including social housing in new developments. These changes also increase the role and opportunity for Local Government to facilitate an increase in the supply of social housing.

The City’s commitment to social and affordable housing

Council has made a number of commitments to providing social and affordable housing in Geelong which are recorded in various documents. The overarching long-term vision is provided by A Clever and Creative Community which states:

“By 2047 Greater Geelong will be internationally recognised as a clever and creative city-region that is forward looking enterprising and adaptive and cares for its people and environment.

A Clever and Creative Community identifies the following Community Aspiration:

an inclusive diverse healthy and socially connected community with success achieved by a variety of affordable options for people to rent or buy a home and support for the most vulnerable members of the community.

The City of Greater Geelong Council Plan 2018 – 2022 states that Council is committed to “Making sure housing supply diversity and affordability can meet the needs of our growing community”.  This includes developing “a housing policy to provide a range of social and affordable housing options”.  A key priority in the Plan is to develop a housing policy to provide a range of social and affordable housing options with the adoption and commencement of the Social Housing Plan in 2019-2020.

The City of Greater Geelong Municipal Public Health & Wellbeing Plan 2018-2021 acknowledges that life opportunities good health and wellbeing are impacted at all stage of life by safe affordable and accessible housing.

The City of Greater Geelong Settlement Strategy (2018) identifies selected strategies for the development of social housing in order to achieve an increase in the level of affordable and social housing in Greater Geelong.  Strategies include supporting affordable housing in areas suitable for increased housing diversity and density especially around Activity Centres and Key Development Areas; investigating voluntary agreements inclusionary zoning and development of surplus government sites to deliver social housing; and working with State government community housing and the private sector to deliver more affordable and social housing.

The Social Housing Plan purpose

The purpose of the Social Housing Plan is to provide the City with a framework to implement previous commitments and in particular to provide a policy that will drive an increase in social and affordable housing options. 

The City is committed to ensuring that housing can meet the needs of its constituents.  In order to meet the needs of some of the most disadvantaged people in the Geelong community the City should collaborate with the State and Commonwealth Governments to increase the supply of social housing.

This will mean a more significant role for the City in planning and controlling the development of social housing and ensuring that the type and location of dwellings to be constructed are consistent with the needs of low-income households.

The Social Housing Plan will also address the requirement of the Victorian Government to provide an evidence base to enable the negotiation of social housing inclusion with developers.

Why Geelong is special

The Geelong region has particular significance within the State of Victoria due to its size and diversity and opportunities for growth.

Geelong is the largest municipality in Victoria encompassing a wide range of suburbs and communities.  These include city centre older urban areas newly developing broad hectare settlements coastal towns post-industrial suburbs and rural and semi-rural regions.  The distribution of social housing in Geelong is extremely uneven and some suburbs have a significantly lower socio-economic profile and experience higher levels of housing stress.  There is a need to upgrade social housing which was originally established in the 1950s as accommodation for factory workers.

The Geelong economy has experienced re-structuring including some major setbacks over the last 20 years but now has a more complex structure which includes manufacturing transport commercial retail and services industries.  Geelong enjoys a special relationship with the State Government which has supported a range of initiatives in the past some of which have been in response to assistance with industrial and economic re-structuring.

Geelong experiences higher levels of uncertainty in relation to housing demand due to high expected population growth (including through migration).  Ongoing migration from Melbourne and Wyndham is likely facilitated by enhanced transport infrastructure including rail road and a major airport. The region offers a range of attractive lifestyles with access to employment recreation arts and culture and beaches.  People coming to Geelong may live and work in Geelong retire to coastal communities or settle in locations where they can commute to Melbourne and other places of employment.

The Geelong Authority

The Geelong Authority was established as a Ministerial Advisory Committee for the Minister for Planning in 2015.  The Geelong Authority provides independent advice to the Minister on a range of issues taking into account any social economic and environmental factors and the resultant net community benefit to central Geelong and the broader Geelong region. The Authority oversees the implementation of the Revitalising Central Geelong Action Plan which has been adopted and funded by the State Government. 

The Plan aims to encourage more people to live and work in central Geelong creation of jobs new development opportunities and increased demand for retail and other services.  The Plan includes several initiatives which potentially relate to social housing including development of housing in the city support for the delivery of student housing revitalising the Geelong Station Precinct and development of community infrastructure to support higher levels of residential development.  The Plan included the development of social housing as part of the St Mary’s School development.

The development of social housing within central Geelong is clearly within the scope of the Geelong Authority.  It will be important for the Authority to oversee housing development projects within Central Geelong and consider the inclusion of social housing within the context of the Social Housing Plan.