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The Productivity Commission’s newly released review on the National Housing and Homelessness Agreement (NHHA) has found the Agreement to be ‘ineffective’ and that there should be focus on ‘improving the affordability of the private rental market and the targeting of housing assistance’. As such, the Commission considers that the NHHA ‘should be expanded to include all government-provided housing assistance including Commonwealth Rent Assistance and first home buyer assistance.’ This finding, together with many of the recommendations in the report, is consistent with AHURI’s submission and advice to the review. 

Sustaining tenancy programs assist tenants who are at risk of losing their rental accommodation to stay in their homes and therefore ‘avoid eviction and entry into homelessness.’ Tenant support programs may also help some tenants at the beginning of their tenancy by supporting formerly homeless people enter and sustain a new rental tenancy. 

There are costs to the general economy when there is a mismatch between the location of jobs, affordable housing opportunities and inadequate public transport. This Brief demonstrates that when good transport and other infrastructure connects householders to a wide range of employment opportunities, urban productivity can be enhanced.

New York city (USA) initiated a 10-year plan to build and preserve 200,000 affordable housing units so as to support households with a range of incomes, from the very lowest to those in the middle class, to create a diverse workforce that drives economic growth. Australian cities can learn from this case study as they are losing their geographically diverse, affordable housing, which may reduce productivity into the future.

Over recent decades Australia’s housing system has shown reductions in rates of affordable housing, stable tenure housing and affordable locations close to employment, all of which weaken urban productivity growth. This Brief presents policy options that can improve the qualities of Australia’s housing market, so as to improve urban productivity growth.