CWM housing icon

Housing

Housing satisfies people’s essential needs for shelter, security and privacy. The adequacy of housing is an important component of wellbeing.

Housing significantly affects the national economy, influencing investment levels, interest rates, building activity and employment. This is particularly relevant for the City of Onkaparinga considering the construction industry is one of our region’s largest employers. The affordability of housing affects choice of location, access to employment, education essential services and proximity to social and family networks. In addition, more affordable housing typically allows for more consumption and investment, which provides greater support for the economy.

Indicators: Number of people reporting homelessness
Number of houses sold at $288,000 and below
Number of households experiencing housing stress
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Data sources: Australian Bureau of Statistics, 2006 and 2011 Census of Population and Housing, Estimating Homelessness
CoreLogic, RP Data
Renewal SA, Housing Affordability Reports 2006 and 2011
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Strategies / Plans: Placemaking Strategy 2014-19
Land Use Strategy 2014-19
Economic Growth and Investment Strategy (under development)
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Community Plan 2035: Objective 1.3 Great lifestyles
Objective 3.3 Dynamic, resilient businesses
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Number of people reporting homelessness 

People who are considered homeless may have no shelter, be living in a shelter that is inadequate, has no or only short tenure, or does not have space to allow them social relations (24). Homelessness can arise due to a number of social and economic factors including domestic violence, substance abuse, lack of affordable housing or unemployment. These factors can then have a negative effect on personal and social outcomes, including costly interactions with emergency health services and the criminal justice system.

The data for homelessness was sourced from ABS Census data (24), hence there was no recent data to include since the completion of the previous Monitor (18).

Data analysis

In 2011 the City of Onkaparinga had a rate of 27.1 homeless people for every 10,000 persons, which was 27.6 per cent less than the rate of homelessness for South Australia and 44.5 per cent less than the national rate of homelessness (Figure 1).

Figure 1: Rate of homelessness, City of Onkaparinga, South Australia and Australia, 2001, 2006 and 2011

CWM Rate of homelessness, City of Onkaparinga, South Australia and Australia, 2001, 2006 and 2011
Source: Australian Bureau of Statistics (24)

 

In addition to people who are classified as homeless, there are also members of the community who may be at risk of falling into the category of homeless. These are people who live in marginalised housing such as crowded dwellings, improvised dwellings and in caravan parks. Monitoring the number of people who live in marginalised housing can help to provide an indication of the number of people living close to the boundary of homelessness.

In 2011 the City of Onkaparinga had a rate of 15.7 people for every 10,000 persons that was living in marginalised housing, which was 31.4 per cent less than the South Australian rate of those living in marginalised housing and 57.0 per cent less than the national rate of those living in marginalised housing (Figure 2).

Figure 2: Estimated rate of those in marginalised housing, Onkaparinga, South Australia and Australia, 2001, 2006 and 2011

CWM Estimated rate of those in marginalised housing, Onkaparinga, South Australia and Australia, 2001, 2006 and 2011
Source: Australian Bureau of Statistics (24)

 

Trend analysis

CWM number people reporting homelessness trend analysis

In the City of Onkaparinga the number of people classified as homeless increased between 2001 and 2011 by 73.4 per cent (Figure 1). This was in contrast to that observed for South Australia and Australia, both of which had slight decreases in the rate of homelessness between 2001 and 2011. South Australia’s rate of homelessness decreased by 5.8 per cent and Australia’s homelessness rate decreased by 3.7 per cent (Figure 1).

The number of people living in marginalised housing in the City of Onkaparinga decreased between 2001 and 2011 by 11.6 per cent (Figure 2). This was in contrast to the trend observed for South Australia and Australia with the rate of people living in marginalised housing increasing between 2001 and 2011. South Australia experienced an increase of 15.3 per cent and Australia an increase of 3.1 per cent (Figure 2). 

Policy implications

The City of Onkaparinga can contribute to decreasing city-wide homelessness through many roles, including the City of Onkaparinga’s ranger team referring cases of hording or squalor to mental health services and also to housing referral services such as Junction Australia (should individuals or families be displaced as a result of their living conditions). The City of Onkaparinga will continue to be strongly involved in advocacy and as an information provider as a member of the Southern Housing Round Table.

Future policy initiatives, including the medium density housing project, might influence future outcomes related to the rate of homelessness and those living in marginalised housing in the City of Onkaparinga, as this framework encourages affordable living options such as small lot housing and townhouses that are located close to centres and public transport.

Proportion of affordable houses

It is important for our communities to have access to a wide range of housing options, particularly those households that have incomes that are considered low (earning up to 80 per cent of the state’s median income) to moderate (80 to 120 per cent of the state’s income). The current indicative purchase price of an affordable home is up to $288,000 (25). Data was sourced from CoreLogic, RP data, with the most current available data for the financial year 2014-15 (26). State and national data was not available for analysis.

Data analysis

In 2014-15 the proportion of homes purchased that were considered affordable (<$288,000) was just under a quarter of all homes sold in the City of Onkaparinga (Figure 3).

 

Figure 3: The proportion of homes purchased for $288,000 and below in the City of Onkaparinga, 2008-09 to 201-14

The proportion of homes purchased for $288,000 and below in the City of Onkaparinga, 2008-09 to 201-14
Source: CoreLogic (26)

 

Trend analysis

CWM proportion of affordable houses trend analysis

While the proportion of affordable homes purchased within the City of Onkaparinga has not shown a consistent trend between the years of 2008-09 and 2014-15, there was an 32.3 per cent decrease in the proportion of affordable homes from 2008-09 to 2014-15 (Figure 3). 

Policy implications

The accessibility of affordable housing within the city is decreasing, therefore the City of Onkaparinga will need to continue to initiate, support and encourage the development of more affordable housing options, as outlined in both the Land Use Strategy 2014-19 and the Placemaking Strategy 2014-19. These strategies encompass how the City of Onkaparinga will act as a service provider by reviewing and amending medium density policies, which will create a policy framework that encourages the development of affordable living options, including small lot housing and townhouses that are located close to centres and public transport.

The City of Onkaparinga will also advocate for funding from both state and federal government for key land use projects that will have a significant impact on housing affordability. The council will also act as an initiator and facilitator through discussions between land owners, investors and non-government organisations for the provision of affordable housing opportunities. The City of Onkaparinga will also act as an information provider and promoter encouraging innovative approaches and development of houses that are affordable and ensuring that a mix of housing options are provided in all new developments. The implementation of these initiatives will continue to achieve the Community Plan Objective 1.3 Great lifestyles.

Number of households experiencing housing stress

In addition to housing affordability, housing stress is also used as an indicator of housing needs. According to South Australia’s Strategic Plan, a household is considered under stress if total household income falls in the lowest 40 per cent of income and more than 30 per cent is spent on rent or mortgage repayments. The data for housing stress was sourced from Renewal SA’s, Housing Affordability Report (27) which is only produced every five years as they utilise Census data, therefore, no recent data was available since the publication of the last Monitor (18)

Data analysis

In 2011, almost one third of low income households were experiencing household stress in the City of Onkaparinga (Table 1). A greater proportion of housing stress was experienced by households that were renting, compared with those who had mortgages.

The total proportion of low income households experiencing housing stress was 3.5 per cent greater for the City of Onkaparinga when compared with South Australia (Table 1). Similarly, there was a greater proportion of South Australians experiencing housing stress for those who were renting, as opposed to those who had mortgages.

 

Table 1: Proportion of low income households experiencing housing stress, City of Onkaparinga and South Australia, 2006 and 2011

  Onkaparinga South Australia
Housing type (%) 2006 2011 2006 2011
Houses mortgaged 12.3 11.2 8.1 8.3
Houses rented 18.2 22.0 19.7 21.5
Total 30.5 33.2 27.9 29.7

Source: Renewal SA (27)

 

Trend analysis

CWM housing stress trend analysis

The proportion of low income households that were experiencing housing stress increased in both the City of Onkaparinga and South Australia between the period of 2006 and 2011, by 8.9 per cent and 6.7 per cent, respectively (Table 1).

In the City of Onkaparinga, the proportion of low income earners who were experiencing mortgage stress actually decreased between 2006 and 2011 by 8.5 per cent, however, the proportion of households that were experiencing rental stress increased by 20.6 per cent.

For South Australia, between 2006 and 2011, there was a slight increase, of 1.6 per cent, in the proportion of low income households experiencing mortgage stress and an increase of 8.8 per cent in the proportion of low income households experiencing rental stress (Table 1).

Policy implications

To assist with lessening the burden of housing stress within the City of Onkaparinga, we will continue to advocate to state government and non-government organisations to respond to the economic and social factors that may contribute to housing stress. This includes working with housing services, such as Junction Australia, to deliver alternative housing, affordable housing and subsidised rental housing schemes, as well as continued investment in community development.

While not directly related to housing stress, we note that our support of the location of medium density housing close to our established activity centres may help to reduce some financial burden by placing people in proximity to required amenities, including jobs, services and public transport. Our efforts to support local business will also help to reduce financial stress through improved earning capacity and local employment, which can also reduce the cost of transportation. We will also continue to advocate for improved education opportunities to support earning capacity, which in turn may contribute to reduce housing stress.

Lastly, it is worth noting that at the time of the 2011 Census data collection the standard variable home loan interest rate was 7.8 per cent, hence considering financial cost are currently lower, the 2016 Census may result in a greater reduction in the number of households experiencing mortgage stress. 

All of these initiatives are outlined in the Land Use Strategy 2014-19 and Placemaking Strategy 2014-19 which will continue to achieve Community Plan Objective 1.3 Great lifestyles and in the draft Economic Development Strategy which will continue to contribute to Community Plan Objective 3.3 Dynamic, resilient businesses.

 

 


 

This indicator is linked to other strategies, plans and targets outlined below:

Government of South Australia South Australia’s Strategic Plan Targets: 7. Affordable Housing: South Australia leads the nation over the period to 2020 in the proportion of homes sold or built that are affordable by low and moderate income households.
8. Housing Stress: South Australia leads the nation over the period to 2020 in the proportion of low and moderate income households not experiencing household stress.
10. Homelessness: halve the number of ‘rough sleepers’ in South Australia by 2013 and maintain thereafter.  
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Other State Strategies • Housing Strategy for South Australia 2013-18
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National Strategies: • N/A
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