Financial Review
Could housing co-operatives, which in some European countries account for a sizeable proportion of the residential market, help solve the accommodation crisis here?
Less than 1 per cent of Australia’s residential market is dedicated to this housing type. By contrast, in parts of Sweden, Norway and Denmark, co-operatives account for nearly a quarter of all housing, according to analysis by the Australia Institute.
That level of market penetration in Europe is giving hope to veterans of the niche sector that the co-op model has much to offer as home ownership becomes unreachable for many Australians.
“Until now, we haven’t had to consider an Australia where home ownership isn’t attainable by the majority of our population,” Liz Thomas, chair of the Australian Co-operative Housing Alliance, told The Australian Financial Review.
There is a growing number of tenants who weren’t eligible for public and community housing, but couldn’t afford to buy a home, Thomas said. With rents still high, there wasn’t much disposable income left for renters to save.
“That’s where housing co-ops [step in]. We’ve got more and more interest in what they are and what they’re doing,” she said. “We’re delivering these co-ops in really trendy suburbs.”