<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

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“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

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[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Housing Affordability

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Neither the Sydney nor Melbourne property market is going to crash, veteran estate agent John McGrath has blogged.
"There are too many fundamentals holding prices up, such as the undersupply, high population growth largely due to migration, very low interest rates, low unemployment and a strong economy," he told investor readers on the Switzer website.
But he agreed the cities were "seeing prices paring back."
He indicated just how far prices will fall "is a hard question to answer with any real accuracy," but added it was reasonable to rely on history for an indication of how low prices might go.
He cited recent research showing Australia has had six previous episodes of declining housing prices since 1980, with the peak-to-trough range of 2.5 percent to 8 percent.
McGrath cited the buying urgency has gone, competition was weaker, "there’s more homes for sale and much less risk of paying a premium at auction.
"We’re getting back to normal market conditions," he said adding it was good because market corrections prevent bubbles.
"We want a period of consolidation now to cement in the significant price gains of the boom.... Sydney house prices were up 67% and Melbourne house prices were up 40% since mid-2012 when the growth cycle began.
"So, even if they fall by 8%-10% or more, most home owners shouldn’t be concerned by this. 
"At the end of the day, the gains made during the boom will far outweigh any price falls we experience now," he said.
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j.ballantyne1990-6AQqhLzZaK

Sydney and Melbourne property markets won't crash in 2018: John McGrath

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Raine &amp; Horne has welcomed release of the latest Committee of Sydney report, calling for the establishment of a ‘Sandstone mega-region,’ linking Greater Sydney with Newcastle, Wollongong, and the Central Coast.
The report by the independent think tank says faster rail could also slash door-to-desk commuting times, noted, executive chairman Angus Raine, who has been a long-term advocate for high-speed rail solution to Sydney’s housing affordability issues.
For example, the current journey time from Newcastle to Parramatta could reduce from 153 minutes to 60 minutes; Wollongong to the Sydney CBD from 85 minutes to 60 minutes and Gosford to the Sydney CBD from 80 minutes to 40 minutes.
Crucially, this network could also create new direct links from Newcastle to Parramatta and from Wollongong to Campbelltown and Liverpool – creating new opportunities and reshaping our region.
“A faster rail network will help relieve some of Sydney’s affordability pressures and underpin long- term property prices in regional centres such as Gosford, Newcastle, and Wollongong by as much as 5-10% when it becomes a reality,” Raine said.
The report also calls on NSW Government to introduce a network of one-hour or less heavy rail connections between cities within the mega-region and argues that building new housing across the rail corridor will help to take pressure off the market in Sydney.
The study argues that an additional 40,000 dwellings could be built across NSW by opening land across rail corridors and found that with improved rail connections by 2036, this network could deliver over $75 billion of housing affordability improvements for Sydney.
“I’d like to see fast train services to Goulburn, and Canberra included in a long-term mega-region plan, as well as a 30-year transport strategy that includes suggestions from urban futurists recommending tunnelling under the Blue Mountains to open up the Lithgow region," Raine added.
“This might sound absurd in 2018, but given Sydney has topographical restraints to its east, west, south and north, we need to look for solutions that will cater to population growth many decades into the future.
“I’m sure many Sydneysiders believed a bridge between Milsons Point and the CBD to be an absurdity in the 1880s too.
REINSW Deputy President Brett Hunter, an agent at Raine &amp; Horne said faster rail is necessary for the growing population on the Central Coast, and to connect more commuters to jobs in Sydney and Newcastle.
The proposed fast rail network would have an enormous impact on Central Coast real estate markets, according to Hunter, by attracting even more Sydney buyers.
“Commute times to Sydney are a major issue for Sydneysiders considering a shift to the Central Coast,” said Hunter.
“We could halve commute times with a fast train service between Sydney and Gosford, which would prove attractive to more Sydneysiders, who are looking for a way to break away from the city’s surging real estate prices,” said Mr Hunter.
“The median house price for Avoca Beach is under $900,000 despite the spike in Sydney buyer numbers over the last few years.
“However, we’d need to see work begin on a fast rail service before we could predict the longer- term impact on values in Avoca Beach, Terrigal, McMasters Beach and Copacabana,” said Mr Hunter.
The state government has already seeking ways to encourage more Sydneysiders to move to the Central Coast, a move Hunter supports.
“A fast rail from Sydney to the Central Coast would enable people to enjoy the intimate coastal lifestyle of the Central Coast but still earn a living in Sydney.”
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jonathanchancellor-7SQnKwU6yx

Fast rail could help solve Sydney's housing affordability issues

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GUEST OBSERVATION
Meeting the cost of buying a home or renting privately is difficult for many in Australia, and sadly impossible for some. Governments are concerned about the housing affordability “crisis” to varying extents, but it’s probably fair to say that we have not seen many effective solutions so far. That’s a result of the complexity of both understanding and solving the problem.
Anglicare’s Rental Affordability Snapshot has, for nearly a decade, painted a worrying picture of almost all of our major cities. Again this year only a tiny proportion of rental properties on the market are affordable for people receiving government support.
But analyses by economists, geographers, the building industry, think tanks, housing researchers and governments themselves define the problem of affordability differently. (And they disagree on the solutions, often relying on flawed assumptions.)
What do we mean by unaffordable?
We aim to contribute to the conversation by challenging how we think about and what we mean by “unaffordable housing”.
The way you measure housing (un)affordability matters – a lot. It affects how big the problem is estimated to be, who is identified as affected, where they live, what interventions might help, and how much these will cost.
In addition, it is tricky to generate simple, usable statistics. This is because Australian households have such varied housing experiences (and costs). Sometimes we forget renters. Sometimes we don’t distinguish between unaffordable housing costs for low-income and high-income households. And, importantly, sometimes we confuse the risk of housing affordability problems with the experience of them.
Here is an example. The most commonly used measure of housing affordability in both policy and research settings is the relatively simple measure of “housing affordability stress”. We classify people as having housing stress if they are in the bottom 40% for household incomes and paying more than 30% of their income in housing costs.
This allows us to identify low-income households that are paying high housing costs. (It’s generally assumed that people with higher incomes can meet their basic housing needs.) Using this measure, it is estimated that roughly 11% of Australian households have unaffordable housing costs.
But housing costs are just one part of a household’s weekly spending. In recent work, we were interested to see if we could identify who is actually experiencing financial hardship because of high housing costs by looking at their capacity to meet other essential non-housing costs. A substantial meal at least once a day, medical and dental treatment when needed, and warm clothes when it’s cold – these are things that most Australians regard as essential. When people cannot afford these things, we describe them as being materially deprived (you can read more about deprivation here).
Within the 11% of the households classified as having unaffordable housing costs, only a small proportion (just under 3% of households) are also materially deprived. When we take a closer look at who is in this smaller group, they are distinct in that they have lower incomes, poorer health, are more financially strained, live in the rental sector, and move house more often.
Some households may be able to cope with high housing costs by “shuffling” other parts of their life. They may, for example, take on more hours at work, draw on savings, or reduce discretionary spending.
Expensive housing becomes a problem when households are unable to make these adjustments. This might be because of illness, for example, or a relationship breakdown, or long-term precarious employment.
At risk or in trouble: an important distinction
This simple analysis suggests that there is a probably a big difference between who is classified as having unaffordable housing costs and who is likely to be most affected by them. It also raises the question of whether trickle-down housing supply solutions will ever reach the people who are genuinely affected by housing affordability problems.
As a starting point, maybe we should give priority to those households that are facing high housing costs and multiple deprivations. This approach encourages a significant shift in where we perceive our housing affordability crisis to be – with less focus on broader market conditions and more on people’s lived experience.
Finally, reflecting on the Anglicare report, perhaps it points to another important conclusion. The fact that so few people on government support can afford decent housing suggests that the problem might not be a housing one, but a welfare one.
Lyrian Daniel, University Postdoctoral Research Fellow, University of Adelaide
Emma Baker, Associate Professor, School of Architecture and Built Environment, University of Adelaide
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/housing-affordability-stress-affects-one-in-nine-households-but-which-ones-are-really-struggling-96103" target="_blank">original article</a>.
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Housing affordability stress affects one in nine households, but which ones are really struggling?

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Options for buyers seeking inner-city housing solutions, outside of apartments and below the $1 million price point, are slim in the Melbourne property market.
Recognising this gap, Australian property group, Glenvill has introduced a new loft design into the YarraBend development in Alphington.
All 48 lofts released sold out in just a couple of weeks.
The lofts, located in The Mills precinct of YarraBend, are housed in four story low-rise buildings.
Each loft spans over two levels with the ground level lofts including a courtyard and those on the upper levels boasting a rooftop garden.
Each loft shares one party wall and are designed around hubs of eight neighbours with individual open spaces.
Director of sales at Glenvill, Ashley Bramich, explains that the unique design of the lofts creates a community feel.
He its captures the demand in the market for something in between a townhouse and an apartment.
“The low-rise boutique buildings are designed to make people feel connected to the community, without the density of an apartment building,” Bramich says.
“We decided to include the loft floorplans in the YarraBend masterplan to offer a solution to buyers who are looking to purchase in the inner city region, but can’t afford a house and land package, or a townhouse, and don’t want to live in an apartment.”
Attracting urban professionals and empty nesters in the sub-$1 million price range, buyers have been willing to buy off the plan.
“Cookie cutter apartment designs won’t cut it,” he said.
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Yarra Bend dwelling design tackling inner-city housing affordability

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GUEST OBSERVATION
Even though house prices have risen substantially over recent decades, housing costs as a share of income have barely shifted in over 20 years. Costs relative to disposable income for housing are largely unchanged, at 17% since 1993, although there has been some increase since 2000.
There is no agreed measure for defining housing affordability, but just looking at house prices can be deceptive. Australian households are roughly equally split between purchasing, renting or owning their house outright.
There is no doubt that house prices increased substantially over recent decades. According to CoreLogic over the past 20 years the median house price in Australia increased from A$140,000 in December 1997 to A$540,000 by December 2017 – an annual increase of 7%. Relative to disposable income this represents a 68% increase over the 20-year period.
Australian households are roughly equally split between purchasing, renting or owning their house outright. Highly inflated house prices are more concerning to people wishing to move from renting to purchasing a house (mostly potential first home buyers).
Housing affordability looks very different when we look at actual housing costs relative to income, rather than just house prices. Housing costs increased substantially between 1984 and 1993.
This was a combination of weak income growth and strong increases in housing costs, particularly mortgages with interest rates increasing sharply over this period. Since peaking in 1993 costs remained relatively stable with rents increasing modestly over the past 10 years, while mortgage costs declined.
Overall, actual housing costs relative to income have remained stable since 1993 at around 16% of disposable income.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/25/d40cd39a221f46f8bd18572aef904b89.jpg" alt="">
We split households into five equal groups from lowest 20% of disposable income up to highest 20%, after adjusting for type of family and household size. Clearly, low-income households spend a lot more on housing relative to their income than higher-income households. The share of housing costs for the lowest income quintile has increased in recent years but is not substantially different from longer term averages.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/25/74e883b8bb6a491b9f31eb556c466b3b.jpg" alt="">
All other income groups have increased their share of spending relative to income since 1984. Since 1993 the changes have been mixed with the lowest income households and highest income households both spending less as a share of income, while the middle income categories have increased their spending, albeit modestly.
Housing was much more affordable in 1984 with average housing costs at just 11.3% of disposable income.
A number of important changes have occurred over the past 25 years. Interest rates are much lower, living standards have increased substantially for low, middle and high income families and savings rates have also increased – implying that housing costs are increasingly a larger share of expenditure.
Another common measure of housing affordability is housing stress. We use the “30/40” stress rule – a household paying more than 30% of their disposable income on housing costs and also in the bottom 40% of the income distribution.
Using this housing stress measure, we see a significant increase in renter stress, firstly between 1984 and 1993 and then from 2007. Mortgage stress is largely unchanged since 1988 following an increase between 1984 and 1988.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/25/f71281532a57455387cf561a0a0bb615.jpg" alt="">
Housing stress rates are similar for major states. The highest rate is in Queensland with 13.5% of households in stress whereas the combined ACT and NT region has the lowest stress rate at 8.1%, thanks to relatively high incomes. The NSW rate is lower than both Victoria and Queensland.
Home ownership rates in Australia have slowly declined since 1984 from around 72% to around 68% by 2015-16. Ownership rates of households headed by people aged under 35 dropped from 50% in the 1980s to around 35% in 2015-16. Households headed by people aged 35 to 49 have experienced a similar percentage point decline but from a higher base.
The downward trend in ownership rates for younger households has been ongoing since 1988. Surprisingly, the house price boom between 1999 and 2005 in Australia does not appear to have made a significant difference to pre-existing trends.
However, home ownership trends are complex, and are likely driven by a range of factors such as interest rates, higher rents in the 1980s, broader societal changes such as people marrying and having children later in life and a higher divorce rates. Another possibility is a shift away from home ownership, with younger people preferring the flexibility that renting offers.
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Overall, housing costs in Australia have been relatively stable as a share of disposable income since the early 1990s. This average does mask problems for low-income renters who are paying an increasing share of their income on housing costs, and rent stress levels have also increased over the long term.
Changed economic circumstances provide risks for housing affordability. Were interest rates or unemployment to increase sharply there would be risks to households and flow on effects to the broader economy.
House prices have indeed increased sharply since the late 1990s, well above incomes or inflation. This poses a problem for those wishing to move from the rental market to owning a home as higher house prices imply larger deposits.
<img src="https://counter.theconversation.com/content/95286/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">While elevated house prices are a concern, the more pressing social problem for Australia remains the lack of affordable rental housing for lower-income families that is close to jobs and services in our capital cities. This has been an ongoing problem in Australia for a number of decades. An ageing population with potentially lower home ownership rates will add to this problem in future years.
Ben Phillips, Associate Professor, Centre for Social Research and Methods, Australian National University
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/housing-costs-are-actually-the-same-as-in-1993-but-renters-still-struggle-95286" target="_blank">original article</a>.
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Housing costs are actually the same as in 1993, but renters still struggle: Ben Phillips

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The recent slowing in price growth, and even sizeable price declines, provides some Sydney first time buyers with opportunist purchasing prospects.
But while intense competition from investors has dropped off, there has been renewed demand arising from the overseas migration into Sydney.
Accordingly decentralisation should be more seriously on the agenda of all government as a means of addressing the affordability and liveability issues that young Sydneysiders confront.
We need to develop regional hubs where people can live, own, work and play without being expected to endure undue mortgage stress.
I'm old enough to recall the beginnings of what became the failed Albury-Wodonga decentralisation experiment. 
It was the 1973 vision of Premiers Sir Robert Askin and Sir Rupert Hamer overseen by Prime Minister Gough Whitlam.
“Whitlamabad” as the soon-gone Prime Minister often jested.
Divided by more than a river, the scheme tried to undo state borders with the ensuing rivalry a recipe for disaster.
I was thinking of the failure when I veered off the Hume Highway for a quick lunch while recently driving between Sydney and Melbourne.
My prawns, crisp lettuce and avocado with a squeeze of farm gate lemon was superb. 
Here I was five hours inland on a stinking hot day over the Christmas break. Nothing that I couldn't have had at the seriously overcrowded Westfield Bondi Junction.
Lunch was doable because there's no tyranny of distance with food anymore, so why not our lifes.
What is so unpalatable to our smart youthful generations about living outside the big smoke?
Our entrenched public service bureacracies have a mindset which holds back the embrace of decentralisation.
Indeed it was public servants in Canberra, Sydney and Melbourne who were horrified at the prospect of any forced move to Albury-Wodonga decades ago.
That self interest ensured the current crushing commutes are the daily outcome for much of the Sydney population.
But there are now bigger influences at work through globalisation. The emerging gig economy will certainly enable the great shift out - and cheaper travel and accomodation from the distruptive economy will assist those who have to occasionally come back into the rat race.
While the forces of disruption make their way through most industries, the antiquated public service mentality remains intact.
The recently unveiled vision of the Greater Sydney Commission of a ‘metropolis of three cities’ – Eastern Harbour City (the current CBD), the Central City (Parramatta and surrounds) and the ‘Western Parkland City’ (clustered around the Badgerys Creek Airport, Penrith and Campbelltown) - didn't inspire me.
The need is for increased housing supply incentives outside our key centres.
Decentralising will also assist in making urban life better for those who remain, not just the smashed avocado generation who really do aspire to home ownership, and a lifestyle somewhere, without too much stress.
This article first appeared in the Daily Telegraph. 
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Decentralisation should be a key home affordability response by government

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Affordability is set to moderately improve in 2018, mainly as a result of softening housing market conditions, a new report from Moody’s says.
Over the year to March 2018, Sydney showed the greatest improvement in affordability with Perth not far behind, largely due to housing prices falling 3.1% and 3.6% respectively.
However, affordability deteriorated in both Melbourne and Adelaide, Moody’s The RMBS - Australia: Housing affordability to improve on property market slowdown report suggested.
The firm says that median housing prices in Sydney are likely to continue to cool, while Melbourne's prices will continue to show tempered growth during the rest of the year.
The report also says that more affordable mortgages decrease the risk of loan delinquencies and defaults.
On average, Australian households with two income earners taking out an 80% loan-to-value mortgage needed 28.2% of their monthly income to meet monthly mortgage repayments in March 2018, down marginally from 28.3% in March 2017, says Alena Chen, a Moody's Vice President and Senior Analyst.
"Housing affordability for new mortgage borrowers — measured as the proportion of household income needed to meet mortgage repayments — improved marginally on average across Australia over the year to March 2018, because lower interest rates and moderate income growth outstripped the effect of higher housing prices.
"Looking at the rest of 2018, we expect housing affordability to continue to improve moderately on average because of softening housing market conditions, particularly in Sydney and to a lesser extent Melbourne.
"On average across Australia, housing affordability in March 2018 was also better than the average for the past 10 years."
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Housing affordability set to improve with softening market: Moody's

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Despite a chronic shortage of affordable housing, Australian governments have been slow to experiment or support affordable housing provisions through the planning and development process.
It will be interesting to see whether next month's Federal Budget from Scott Morrison advances the complex issue, and then whether further initiatives come from the State Budget.
To date NSW's mostly voluntary planning incentives have failed to deliver worthwhile numbers of affordable homes.
A recent study calculated the main affordable housing scheme had yielded only 2,000 affordable Sydney rental dwellings since 2009.
This is the equivalent to about one per cent of the city’s total supply.
<div>The scheme typically offers a density bonus to NSW developers with increased floorspace to build in return for affordable rental housing that must be rented to eligible households at 20 percent market discount for 10 years.</div>
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<div>Some 19 of proposals were by private sector developers, while six were by Community Housing Providers (CHPs) or not-for-profit organisations.</div>
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<div>The policy lead in this important area has been South Australia where around 17 per cent of total dwelling approvals within major new residential development areas have been dedicated affordable homes. </div>
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The NSW approach has focused on affordable rental housing, while most dwellings secured through the South Australian model are offered for sale to eligible moderate income earners. 
We clearly need better policy to improve the outcome.
When compared to international practice, even the South Australian schemes is modest, according to a recent study by the Australian Housing and Urban Research Institute.
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In England and Scotland, the general expectation is for 20 percent to 40 per cent of new housing developments to be affordable housing. 
Australia’s first pilot schemes emerged in the mid-1990s through the Federal Government’s Building Better Cities program which funded projects in Pyrmont and Ultimo.
The approach was extended to the major urban renewal precinct surrounding Green Square.
However, the NSW Government has been reluctant to allow local councils to impose mandatory requirements for affordable housing through the planning process.
At the Federal level, the primary focus has been seeking to address affordability through increasing overall land supply.
Indeed the the Council of Australian Governments (COAG) working party on housing supply and affordability expressed the view in 2012 that affordable inclusionary zoning would be counter-productive to overall supply efforts.
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Since affordable housing requirements reduce the value of undeveloped land, incentives to developers will be needed should significant affordable housing outcomes are to be delivered.
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It is also important governments, rather than seeking the highest and best use land value in sales of government land, adopt a new approach with the price reflecting the housing needs that the development seeks to address.
Given that affordable housing is a 30-year plus investment, it requires our governments that think shorter to embrace vision.
This article was first published in the Daily Telegraph.
 
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Affordable housing scheme not yielding results

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GUEST OBSERVATION
Affordable housing supply is a critical issue for governments – but so too is ensuring Australians have good access to meaningful employment, good social services and facilities, and quality environments.
The Planning Institute of Australia endorses in principle the wider use of inclusionary zoning practices that are in the new Australian Housing and Urban Research Institute (AHURI) study on how planning incentives could be used to build more affordable dwellings.
However, governments could not continue to ignore the fact that the housing affordability crisis stemmed in large part from demand-side factors such as capital gains tax exemptions, negative gearing, and strong population growth.
The biggest impact on affordable housing supply comes from the preferential tax treatment accorded home-owners and investors.
Until governments reform these arrangements, low to medium-income earners will struggle to get a foot on the home-ownership ladder.
For many people, including the homeless, the increased use of planning incentives would make little practical difference.
The unemployed, the socially disadvantaged, and those suffering from mental illness or substance abuse disorders usually needed public and/or charitable housing.
Inclusionary zoning codes implemented in San Francisco or London might not transplant well to Sydney, Melbourne or our other capital cities.
Wholesale adoption of inclusionary zoning provisions may lead to perverse outcomes if they’re implemented without due regard to local market conditions and specific city-wide, or regional plans.
A surer bet would be affordable housing targets developed in consultation with the community and based on quality urban design and architectural foundations.
As well as boosting supply, housing targets backed by good design standards would improve the quality of our built environments and help alleviate the twin problems of diminished social capital and growing economic inequality.
AHURI conducts valuable research on how we might best tackle the big housing and planning challenges facing our cities, towns, and regions.
The use of planning incentives is an example of a possible mechanism that would, ideally, be on the agenda of a COAG planning and housing ministerial council. 
Unfortunately, the Federal Coalition Government does not have a dedicated housing department, let alone a housing minister. 
Rolf Fenner is chief policy officer of the Planning Institute of Australia (PIA).
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Inclusionary zoning may lead to perverse outcomes if implemented poorly: Rolf Fenner

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EXPERT OBSERVATION
Australia has record levels of supply of new properties but despite various government interventions, housing still remains unaffordable for many.
Our study found the government could use more direct methods to deliver homes for people on low and moderate incomes, while leveraging the market. These methods, widespread across the United Kingdom and in major cities of the United States, are known as “inclusionary planning”.
This includes requiring developers to make a financial contribution towards affordable housing, or to dedicate completed dwellings, as part of the development approval process.
We studied the outcomes of inclusionary planning programs in parts of the United States and the United Kingdom, and more recent approaches in South Australia and New South Wales.
What techniques can ensure affordable housing in the mix
“Inclusionary zoning”, a common type of inclusionary planning, was first developed in the United States to counteract land use rules which excluded the lower end of the property market. For example, where rules would only permit large homes on single allotments.
Some states in the US have also adopted “anti-snob” laws. Under these laws, developers whose schemes include affordable housing can bypass local zoning controls, if an area has insufficient affordable housing for those on low and moderate incomes.
More recently, inclusionary planning programs are being used in many US cities in a bid to ensure that transport and infrastructure investment does not price out or displace lower income renters.
There are now more than 500 inclusionary planning schemes operating in municipalities across the US. Some require developers to include affordable housing as part of development in a particular zone (usually a fixed percentage of units or floor space).
For example inclusionary planning programs in the city of San Francisco, California (population of around 830,000) generate around 150–250 affordable units per year (around 12% of the city’s total supply).
Other schemes allow variations to planning rules in return for affordable housing. These variations might permit additional density in certain areas or waive certain requirements that would normally apply or expedite the development assessment process.
Other schemes require financial contributions from developers to offset the impact of a project on affordable housing demand or supply.
These programs provide a way for governments to ensure affordable housing for lower income residents even in rapidly gentrifying neighbourhoods.
How this plays out in England and Scotland
In England and Scotland, the supply of affordable housing is negotiated through the planning process. The general expectation is that 20 to 40% of new housing developments will be affordable. But proportions of affordable housing are allowed to vary on a case by case basis in light of the housing market and the costs of undertaking the development.
The main methods for this in England are section 106 agreements. These agreements, which come under the Town and Country Planning Act 1990, specify the amount and type of affordable housing to be provided as part of a development.
Section 106 agreements have steadily gained traction since the 1990s. Between 2005–16, 83,790 affordable dwellings were secured through these agreements in England. This included 9,640 new dwellings in 2015–16.
Section 106 agreements have resulted in different types of affordable housing, including social housing, discounted home ownership, share equity schemes and affordable rental housing (offered at 20% less rent than for comparable properties in the same local housing market).
Our study found that when inclusionary planning model requirements are predictable and applied in a consistent way, developers accept them because they can factor costs into the price paid for land.
We also found most models work in conjunction with other government funding or subsidies, extending the value of this funding by reducing the cost of land for social or affordable housing.
What usually happens in Australia
Only the South Australia and New South Wales governments have similar types of planning schemes in Australia, although there are signs that other states may follow.
The SA government’s inclusionary planning target, announced in 2005, aims for 15% of significant new housing developments to be affordable.
By 2016 more than 2,000 affordable homes had been built and a further 3,476 homes committed. This amounts to about 17% of new housing supply in South Australia.
In NSW, inclusionary planning schemes only deliver affordable rental housing.
In the mid 1990s an inclusionary zoning scheme pilot was introduced to Pyrmont and Ultimo. This scheme was then extended to Green Square.
These schemes require that developers dedicate 0.8 to 3% of the floor area of developments for affordable housing, or that a monetary contribution be made in lieu of direct affordable housing provision.
However, to date, the NSW state government and many in the development sector have favoured voluntary mechanisms (such as density bonuses for providing affordable housing) over mandatory ones to supply affordable rental housing.
For our study, we estimated the volume of affordable housing delivered through voluntary planning agreements and state policy giving a density bonus for affordable housing inclusion by examining individual development approval records.
We found that voluntary measures have so far delivered about 1,300 dwellings or between 0.5 to 1% of Sydney’s housing supply between 2009 and 2017.
How viable is inclusionary planning?
We found that voluntary planning incentives can encourage affordable housing, but as part of incremental residential development, within the existing planning framework.
However, affordable housing should be mandated when land is rezoned for residential development, when planning rules are varied for particular projects, or following major infrastructure investment.
<img src="https://counter.theconversation.com/content/94581/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Inclusionary planning can’t replace government funding in providing housing for those on the lowest incomes. However, inclusionary planning schemes can reduce land costs and ensure that affordable homes are well located near jobs and services.
Nicole Gurran, Professor of Urban and Regional Planning, University of Sydney
Catherine Gilbert, Research Assistant and PhD Candidate, Urban Housing Lab, University of Sydney
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/england-expects-40-of-new-housing-developments-will-be-affordable-why-cant-australia-94581" target="_blank">original article</a>.
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