Viv Markham, Tarrangower Times

Last week’s article in the [Tarrangower] Times about the housing crisis in the Shire outlined the extent of the problem and what assistance was available for those experiencing homelessness and housing stress.

The article also touched upon the State and Federal Governments’ plans for providing more social and affordable housing and the lack of progress to date, in terms of bricks and mortar. 

As Bendigo West MP Maree Edwards said, “There is no magic fix.”

This week’s article poses the questions: how big is government appetite to fix the homelessness and the housing problem? And what are some of the solutions?

Dragging its feet

When it comes to addressing homelessness, the State Government is undoubtedly dragging its feet. A 500-page parliamentary inquiry on homelessness that offered some solutions was tabled in March 2021. That was over two years ago, and the responsible Minister is required to formally reply within six months. It has been reported that this has yet to happen.

Recommendations of the report include the need to provide affordable, stable long-term housing.

Which is something that we already know!

More promises…

Hard on the heels of the announcement that the Commonwealth Games would be cancelled came the promise from the State Government to build 1,300 affordable homes across the regions.  Let’s say, for simplicity’s sake, that the cost of land plus house build is $1 million (and the actual cost would be much less than that). The build would only cost $1.3 billion – much less than the $2.6 billion budgeted for the Games.  

So where will the Games money go? Some of it will be channelled into paying a series of ‘cancellation fees’ while other funds will be used for sporting facility upgrades, to compensate regional communities for the fact that the Games are not being held in their towns.  

Why not spend the balance, after the cancellation fees are paid, on affordable social housing? If the State Government is serious about fixing the problem, why not fix it? 

Good ideas, but…

Councils lack the funds to address the problem of unaffordable housing but have the advantage over Federal and State governments of on-the-ground networks and knowledge. Within its boundaries, Mt Alexander Shire has existing partnerships with agencies and organisations who are working towards solving the housing crisis.  

As Council points out, the median house price in the Shire is $740,000 and the median weekly rent is $455 – a sobering figure when you consider that no more than 30 percent of a household’s income should go towards rent.  

In 2021, Council employed a Housing Solutions Broker to address the problem of housing across the Shire.   It’s important to keep in mind that Council acts only as a facilitator, as it does not provide or manage social housing.

The question is: in terms of bricks and mortar, how successful is the Housing Solutions Broker’s role? How many affordable homes have been built in the Shire since that appointment?

More good ideas

There are more good ideas out there to solve the housing crisis – such as the My Home Network, which is a group of community organisations working collaboratively to address the problem.  

A group of like-minded women in the Shire have come together to build affordable housing on communally-owned land. Similar schemes are in their infancy. 

One of the most effective ways of providing affordable housing is hiding in plain sight in Maldon – Tarrangower Village. It’s a not-for-profit association run by volunteers that has been providing homes for retirees for over 45 years. It’s a model of housing that other communities should consider.  

Would these work?

Okay, we’re at a housing crossroads, so why not consider other solutions? 

Some examples, together with some pros and cons:

• Higher rates for houses that are not occupied by the owners or by long-term renters. Pros: people may think twice about the economics of owning a second home and decide to sell. This will push down the cost of housing as more housing is available to buy. Cons: potential destabilisation of the housing market.  
• Abolish negative gearing. See above for the pros and cons. 
• Longer leases for renters – in Europe, five-year leases are not uncommon. This is a win-win, but only if interest rates don’t rise any further and leave landlords with unaffordable mortgages.
• Rent capping – see the above for pros and cons.  It will only work if interest rates don’t continue to climb.
• There’s plenty of unused Federal, State and Council-owned land hanging around that could be rezoned and used as land for affordable housing builds. No cons with this one!  
• Reduce Australia’s immigration rate. Pros: less new housing is required. Cons: many of these younger migrants are needed to work and pay taxes as the Australian population ages.   
• Those people living on their own in a larger house could consider taking in a boarder. Remember boarders? In the old days, they were quite common. Pros: a financial win for both house owner and boarder.  Cons: who used the last of the milk?
• Short-term accommodation for those who are presently homeless – in publicly funded self-contained cabins and caravans in caravan parks and camping grounds. Pros: access to warm, clean accommodation. Cons: this should only be regarded as a temporary solution, and not a long-term fix for homelessness.
• Some form of crisis accommodation for families who need it most.  Remember the emergency accommodation provided at the old parsonage in Maldon? It worked well.    
• At the very least, provision of facilities for showering and clothes washing – such as those that used to be on offer at Geof and Shirley Little’s Central Service Centre.        

Any other ideas?  The [Tarrangower] Times would love to hear them!

This article appeared in the Tarrangower Times, 28 July 2023.

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