Integrating affordable housing and sustainable housing: bridging two merit goods in Australia

Abstract

Interest among planning and policy makers in environmentally sustainable housing has risen in recent years as a response to the global goal of attaining sustainable development. In Australia, there has long been concern that the market might under-provide affordable housing and, more recently, concerns have been raised over the capacity of the market to provide sustainable housing. Governments in Australia have intervened through subsidies, tax incentives and more direct forms of support for the provision of affordable and sustainable housing. Providing environmentally sustainable housing is thus perceived to be a “merit good” in Australia. That is, a good that has social merit but one that is underprovided by markets. Contemporary housing policy debate in Australia has emphasised the need to respond to a growing housing affordability challenge. Affordable housing might also be seen to be a merit good in Australia. Nevertheless there has been a reluctance to consider housing sustainability in the same context as housing affordability. This chapter addresses the debate over affordable and sustainable housing in Australia by drawing on learnings from the Ecocents Living research project to suggest a conceptual basis to understand the issues at hand. Ecocents Living is a project that seeks to integrate the concepts of affordable and sustainable housing into a model to guide industrial implementation of sustainable and affordable housing. It is argued that the concepts of sustainable housing and affordable housing have synergies that warrant consideration and the further development of an embryonic model for integrating sustainable and affordable housing is offered in this chapter.