New modelling gives tick to Labor housing affordability policy
Modelling undertaken by the McKell Institute in collaboration with Price Waterhouse Cooper (PwC) has found that the Labor Party's national affordabilty rental strategy would have significant social and economic benefits and could save the State and Federal Budget up to $11 billion in the long run whilst generating up to $40 billion in GDP and up to 46,000 jobs.
The modelling drew on the Amplify Insights – Housing Affordability and Homelessness Report, produced by the Centre for Social Impact (CSI) and City Futures at UNSW Sydney, in partnership with PwC Australia and QBE. Australian Red Cross and Mission Australia.
This report found that on average, private and public renters have borne more financial burden than mortgage holders over the last two decades with average weekly housing costs increasing for private renters by 56%, public renters by 64%, and mortgage holders by 36%.
The number of households experiencing housing stress is at record levels, with 44 per cent of all low-income households in housing stress, and households with a single mother and children at highest risk.
Insecure housing has a range of detrimental impacts, and is associated with poor physical and mental health, poor education outcomes, reduced social connectedness and social participation and is both a cause and effect of insecure employment. Taken together these factors have, in part, driven significant rises in homelessness since 2001.
CSI has entered a joint project with PwC Australia, Australian Red Cross, and Mission Australia, the Constellation Project, whose mission is to work towards ending homelessness in a generation.
Rosalie Wilkie, Social Impact Partner at PwC said that the Insights report helped set the scene for the work that needs to be done through The Constellation Project.
“We decided upon an ambitious agenda this year, to be a part of a collaboration that will work towards ending homelessness in a generation. With this CSI Insights report, we can clearly see the work that needs to be done. It sets the scene and gives us actionable insights into how we can work together on this important social issue.”
The PwC/McKell Institute analysis of the National Rental Affordability scheme is here.