Affordable Housing Institute : US

Last week AHI hosted Australia’s Jarrod Gitsham,

 

Jarrod GItsham and David Smith

 

who is in the US (Boston, New York, Washington DC) on his Hugh Stretton Award fellowship, looking at US programs to increase homeownership, with a view to assessing which of them offer lessons for Australia generally and his employer, the South Australia Housing Trust.

 

Using GPS mapping and databases, Jarrod has produced some world-class spatial analysis of affordability today, where the South Australian Housing Trust has been putting its money, and the resulting boomerang effect:

 

 

Figure 1 : 1995/1996 - Low-Income maximum loan amount volume of sales - Units

Figure 2 : 2004/2005 - Low-Income            maximum loan amount volume of sales -          Units

 

                     

 

As can be seen from these figures, the volume of low-income affordable detached and attached dwelling sales has significantly reduced across Metropolitan Adelaide over this period. This reduction in sales has been predominantly around inner metropolitan Adelaide. Throughout 1996/1997 there was an even distribution of affordable moderate-income detached and attached dwellings sold across Metropolitan Adelaide, particularly within the western and north eastern suburbs. By 2004/2005 moderate-income affordable detached and attached sales have contracted significantly within inner Metropolitan Adelaide suburbs.

 

That’s very nice work, and he takes it farther:

 

Figure 3 again shows low-income maximum loan amount volume of sales for detached and attached dwellings within Metropolitan Adelaide throughout 2004/2005. Figure 4 shows where the South Australian Government has concentrated selling land throughout the same period within Metropolitan Adelaide.

 

Figure 3 : 2004/2005 - Low-Income maximum loan amount volume of sales – Detached Attached

Figure 4 : 2004/2005 – South Australian          Government Land Sales

             

                     

 

For all the benefits previously described, redevelopment of public housing also has the effect of increasing the value of both land and dwellings. Anecdotal evidence would also suggest that as areas are redeveloped, community profile subsequently lifts and private rental costs increase placing households in housing stress.

 

As a result redevelopment of South Australian Housing Trust dwellings reduces public housing presence in specific areas and has a negative effect on affordability.

 

 

 

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