Frequently Asked Questions

Affordable housing is housing that is appropriate for the needs of a range of very low to moderate income households, and priced (whether mortgage repayments or rent) so these households are able to meet their other essential basic living costs.

There are a number of different definitions for affordable housing across used in different legislative contexts. You can read about these in more detail under the following links:

NSW Affordable Housing Ministerial Guidelines 2023-24 | Family & Community Services

ENVIRONMENTAL PLANNING AND ASSESSMENT ACT 1979 - SECT 1.4 Definitions (austlii.edu.au)

State Environmental Planning Policy (Housing) 2021 - NSW Legislation

Affordable housing and housing affordability are two related but different concepts.

Affordable housing is mostly considered to be housing that can be rented or mortgaged for 30% of the median household income. Housing affordability is the relationship between expenditure on housing (prices, mortgage payments or rents) and household incomes. Viewed in this way affordable housing is a subset of housing affordability and is typically the aspect of household ‘affordability’ that is generally subsidised by government for low-income and or social housing.

Parliament of Australia provides a discussion about housing affordability in Australia and can be accessed from the link below:

Housing affordability in Australia – Parliament of Australia (aph.gov.au)

For the purpose of the Tweed Affordable Housing Strategy affordable housing is housing that is in someway supported or subsidised by government or the private sector, and mainly delivered as rental housing.

The Tweed’s Growth Management and Housing Strategy, which is being prepared concurrently, views housing affordability from the standpoint of enabling diversity and choice of housing that has the potential to broaden the price range of housing. Providing for greater diversity in the size and location of housing may lead to greater affordability as well as housing that meets broader household needs, for example housing that is designed for lone or couple households requiring a smaller one- or two-bedroom dwelling that does not compromise on private amenity, design or location.

The Australian Housing and Urban Research Institute (AHURI) provides an informative discussion about the difference between social housing and affordable housing that speaks to this notion of ‘affordability’:

While Council does not provide, build or allocate affordable or social housing, we play a role in encouraging and facilitating the provision of affordable and social housing through the planning system, direct support, partnerships and advocacy.

• Tweed’s population is estimated to grow from 97,392 in 2021 to 112,244 in 2041 (CHECK need to check this against what we have been saying for the GMHS).
• Households are smaller, older, and living longer by 2041. Currently, 27% of Tweeds population are aged over 65 compared to 18% in New South Wales.
• In the 1970s, 70% of social housing tenants were couples with children. In 2021, it was 4%. Now social housing is predominantly single person or couple households.
• Social and affordable housing represents only 2.9% of all homes in the Tweed Shire.
• In 2021, there was shortage of 1,118 dwellings for social housing and 2,665 dwellings for affordable housing.
• 91% of very low / low income renters are under rental stress with 47% of all renters experiencing rental stress.
• 73% of very low / low income homeowners are under mortgage stress with 17.6% of all households experiencing mortgage stress in 2021.
• 34.3% of the lowest income quartile is the largest proportion of households.
• 63% of those financial assistance are paying >30% of their income on mortgage repayments.

The Australian Housing and Urban Research Institute (AHURI), see link below, describes social housing that is government subsidised short and long-term rental housing. This includes both public housing and community housing, which is managed by government or non-government community housing providers.

What is the difference between social housing and affordable housing - and why do they matter? | AHURI

A household is typically described as being in ‘housing stress’ if it is paying more than 30% of its income in housing costs. A household can experience rental stress or mortgage stress.

As higher income households can spend a higher proportion of their income on housing without experiencing problems, they are often excluded from these types of analysis. Consequently, a ratio of 30/40 is often used as a benchmark—that is, if households that fall in the bottom 40% by income spend more than 30% of their income on housing, they are defined as being in housing stress.

For further information refer to the Parliament of Australia website on housing affordability in Australia:

Housing affordability in Australia – Parliament of Australia (aph.gov.au)

Those that fall within the low and very-low income households. This can often include people in lone person or single parent households, older people, persons with a disability, people born in non-English speaking countries and people outside of paid employment.

Social and affordable housing is provided by government bodies, the community housing sector and private market developers.

A range of different solutions is necessary, with particular emphasis on:

• Individuals experiencing homelessness – this includes people living in supported accommodation, staying in temporary accommodation, living in severely crowded living arrangements or sleeping rough.
• The private rental market who are paying more than 30 per cent of their income on rent and are at a high risk of experiencing homelessness.
• Households living in either public or community housing.
• Housing options for older women, Aboriginal and Torres Strait Islander communities and women and children escaping domestic and family violence and people with disability.