Profiling Australia's affordable housing industry Inquiry into affordable housing industry capacity

Australia's emerging affordable housing industry has considerable potential to expand housing options for lower income households. This study examines the industry's current profile and capacity. For the purposes of this study, the affordable housing industry comprises: Non-government (for-profit and not-for-profit) affordable housing providers, the institutions and individuals that enable, support and regulate their work. Capacity is the ability of the industry to perform its work. Capacity is multidimensional and includes having: the resources to do the work, appropriate organisational and workforce capacities, industry-specific skills, effective networks and political influence. The regulated industry comprises two main types of providers: a group of 40 commercially-oriented entities that raise private finance, procure housing and offer diversified housing services. Most in this group couldaccommodate further expansion and develop their own future capacity; a second group of 283 smaller organisations that mainly provide governmentcontracted tenancy and/or homelessness services. Many have growth potential but lack resources. Capacity-building could be targeted to assist this group. There is also a sizeable group of (both registered and unregistered) Indigenous-run community housing organisations (ICHOs). Limited operating scale, poor viability and recent policy disruptions have left many ICHOs vulnerable. An intentional tailored approach to building scale and capacity among this group is critical to ambitions to 'close the gap' in Indigenous disadvantage. Key gaps in industry infrastructure include the absence of: clear and consistent government and industry leadership; a core industry data set; a financial intermediary to harness private investment. For the industry overall, the main capacity issues identified so far concern: the need for scaled-up and predictable growth opportunities to promote further capacity development and strategic investment; shortcomings in policy-making capacities and regulation.