Housing affordability in Ballarat must be addressed at all levels of government, according to a new research paper, as regional bodies warn about infrastructure being unable to keep up with growth.
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The paper, commissioned by Buninyong MP Michaela Settle and written by parliamentary intern Brad Woolley, analyses the entire Ballarat region, using statistics and interviews with service providers and social workers.
It concluded demand has increased in Ballarat through the pandemic, which has led to "significant unaffordability and very low vacancy rates".
"These issues have compounded existing concerns about a growing number of individuals experiencing housing stress in the region," it states.
"Three key recommendations were provided: increase the supply of diverse and affordable housing options to address shortfalls in current supply/stock in Ballarat; increase funding for social housing in Ballarat; (and) build stronger partnerships with local, state and federal organisations to address housing affordability deficits in Ballarat."
The report notes this continuing unaffordability will impact our more vulnerable residents the hardest - "(i)n particular, low-income earners, individuals on Centrelink incomes, young people, victim-survivors of domestic and family violence (DFV), older Australians, Indigenous Australians, migrant communities and individuals with disabilities have been impacted," it states.
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The report examines the Ballarat region, which includes Daylesford, Beaufort, and Maryborough.
The "exodus" from Melbourne is repeatedly noted as a stressor for the lack of housing stock, and, citing a Domain research report, "the Ballarat region's median house price increased by 17.6 per cent in 2020 to $500,000".
It uses a statistical estimate to come up with how affordable housing is, based on median household income and median house price, as well as the Residential Tenancies Bond Authority definition, which is "a property is 'affordable' if no more than 30 per cent of gross income is spent on rent" - as previously reported in The Courier, the statistics are concerning.
"As of December 2020, only 52.4 per cent of rental properties were deemed affordable," the report states.
"The data indicates that there was a decrease of 91 affordable properties in Ballarat in 2020. "Specifically, the most significant issue is associated with one-bedroom properties as only five were considered affordable in December 2020.
"Further, 34.7 per cent of two-bedroom properties and 45.3 per cent of three-bedroom properties were considered affordable."
The report gives several reasons for this - "(o)ne stakeholder explained that the council's heritage restrictions limits the construction of apartments and smaller housing. Consequently, most housing developments are on the outskirts of Ballarat where there is poorer access to services and public transport," it states.
"In addition, local councils can encourage the supply of affordable housing through other local planning processes to allow for additional temporary or small dwellings on existing properties."
It also criticises state and federal government policies such as the lack of inclusionary zoning in Victoria, the expansion of First Home Owners Grants stimulating demand without addressing supply, and changes to the Residential Tenancies Act leading to more VCAT disputes.
There is a discussion on the state government's social housing initiatives, which have been criticised by some residents, but could also lead to more availability of more modern and fit-for-purpose housing.
Ms Settle said in a statement she'd be taking the inclusionary zoning proposal to the housing minister.
The report, released this week, follows a push from Regional Capitals Australia for more investment in infrastructure, as councils reckon with growing populations.
Regional Capitals chair Kevin Mack said in a statement COVID had changed how everyone lives and works.
"In regional Australia, our digital technology and housing services in particular, are not keeping up," he said.
"For too long there has been a capital city-centric approach. It is crucial that we acknowledge the growth in regional Australia, and get the policy settings right, accordingly."
The research paper is available online.