The Community Housing Industry Association participated in the NSW Productivity Commission’s housing symposium ‘Density that works’ held at the NSW Parliament on 20 November. The symposium brought together over 120 representatives from the private sector, local councils, government agencies, and universities to consider the topic of housing density, the associated social, economic and environmental benefits, and what is needed to make density work for NSW.
The NSW Treasurer The Hon. Daniel Mookhey MLC opened the event by first presenting Treasury modelling showing median Sydney apartment rent could have been about 5.5 per cent, or $35 a week cheaper, if the typical unit block built between 2017 and 2022 had been 10 storeys instead of seven. Secondly he argued for more homes in the inner west and eastern suburbs pointing to the advantages to residents of well located homes and also noting that reorientating growth to the inner suburbs also significantly reduces climate risks
Auckland Council Chief Economist Gary Blick provided an overview of the city’s planning rules which were implemented in 2016 and allowed for more medium density housing in large parts of the city. He argued that the evidence suggests that (i) supply has increased; (ii) that homes are being built closer to the CBD, transport facilities and employment opportunities; and (iii) is more reliant on infill development. He also argued that in comparison to other New Zealand cities, median rents had risen more modestly
The event’s MC Geraldine Doogue facilitated two panels, where CHIA’s CEO got the opportunity to argue that density that works has to include a range of housing and importantly social and affordable rental housing. This means inclusionary zoning has to be on the table. We also got the opportunity to remind the audience of work jointly commissioned by CHIA NSW, NSW Shelter, the Property Council and others to estimate the productivity gains from locating homes near transport and jobs. The research estimated (for example) that even the lowest paid workers could earn an extra $11,793 p/a, with a lifetime Net Present Value of $56,000 by living in well located home. The full report is here.
The NSW Productivity Commission will be using the discussion generated by the Symposium to finalise their forthcoming new report on housing.
