The term “affordable housing” is often used, but what does it actually mean for people living in Kiama?

Dr Tony Gilmour, a leading expert in urban planning and housing policy, recently discussed the nuances of affordable housing in an interview with Bernie Hems on Kiama Community Radio. 

His insights help to clarify the difference between affordable housing, housing affordability, and social housing, offering a clearer understanding of the challenges facing our community.

Dr Gilmour holds a PhD in Urban Planning from the University of Sydney, along with degrees from Cambridge and Manchester, and has a career spanning investment banking, community housing, and heritage conservation.

Housing Affordability vs. Affordable Housing

Dr Gilmour explained that housing affordability refers to how much of a household’s income goes towards housing costs.

“If you’re spending more than 30% of your income on housing, you’re considered to be in housing stress,” he said.

This applies to everyone, regardless of whether they own or rent their home.

As house prices continue to rise, more people are finding themselves spending a larger portion of their income on housing costs, pushing them into housing stress.

In contrast, affordable housing is housing that has been subsidised to make it easier for people with low and moderate incomes to find a place to live. 

This could include:

• Lower-cost home ownership options

• Rental properties offered at a discount to market rent

For example, if market rent in an area is $1,000 per week, affordable rental housing might be offered at $750 per week.

“Affordable housing is not just for people without an income. It’s for people in lower-paid jobs who don’t earn enough to keep up with high market prices,” Dr Gilmour explained.

Where Does Social Housing Fit In?

Dr Gilmour also touched on social housing, which is aimed at people in high-need situations, such as:

• People experiencing domestic and family violence

• Individuals living with a disability, or with health and mental health issues

• Older residents who are unable to work

Social housing rent is based on a proportion of the tenant’s income, making it accessible for those who have little or no income.

Unfortunately, social housing remains scarce in Kiama, with only 0.6% of local housing stock allocated to it.

“Most people in social housing are good, stable tenants. They look after the properties because they’re worried about being pushed into the private rental market,” he said.

Why Affordable Housing Matters for Kiama

Dr Gilmour believes that a mix of affordable rental housing, social housing, and lower-cost home ownership options is crucial for Kiama’s future.

“If we just build new houses, they’ll be gold-plated. They won’t reduce prices, they’ll just push them higher,” he said.

To increase affordability, it’s important to have homes that are designed to be genuinely affordable, either through smaller, well-designed units or through some form of subsidy. 

Without this, new housing developments are unlikely to address the needs of local workers, older residents, or those on lower incomes.

“We need affordable housing for everyone, teachers, firefighters, cafe workers, aged care staff. The people who make our community need places to live,” Dr Gilmour said.

With Kiama’s Draft Housing Strategy ( Draft 2) going up for public exhibition shortly, now is the time for the community to understand what affordable housing really means and how it could benefit the local area.