Last year in May, the NSW Legislative Assembly initiated an inquiry into options for affordable housing for ‘essential workers’. The terms of reference included looking into the definition of an ‘essential worker’ and criteria for prioritisation of occupations and geographical areas. 

Shelter NSW welcomes any additional contributions to the supply of affordable housing. But there are a number of important considerations to make when looking at essential or ‘key worker’ housing.  

In our submission, we highlighted the importance of: 

• Aiming to provide social and affordable housing to all lower income households whose needs are not met by the market, and not just certain occupations. The boundaries of ‘essential services’ and ‘essential workers’, as highlighted by the COVID-19 crisis, are difficult to define and must be as inclusive as possible.  
• Careful consideration of the potential consequences of tying up housing security with employment status. 
• The impact of short-term rental accommodation (STRA) on housing affordability and availability.  

On February 7, Shelter NSW CEO, John Engeler, appeared as a witness in NSW Parliament to provide additional evidence. Members of the parliamentary committee were particularly keen to further discuss the reforms needed to improve housing security for essential workers. Shelter NSW highlighted the impact of the growth of short-term holiday accommodation on the availability of housing to essential workers in specific areas. Our CEO also pointed out the fact that an increasing proportion of moderate-income earners such as essential workers have difficulties affording home ownership or even renting, because of high rents, interest rates, and strata fees. This is a growing cause of concern and highlights the need for essential worker housing in addition to social housing.  

John Engeler, Shelter NSW CEO, appearing at the parliamentary hearing.

John took the opportunity to highlight the strength and capacity of the NSW community housing sector to develop and manage affordable housing, given sufficient resources such as land and subsidies. One of the major successes of the NSW housing system in the last 25 years has been the growth of the community housing sector. If providing housing directly to moderate income earners remains out of scope in government policy, the State should support and empower the community housing sector, which has the structure, framework and policies in place to run affordable housing products. In some areas such as the City of Sydney, CHPs like City West Housing have been doing so successfully for over 30 years.