A team of leading housing researchers has launched a major project aimed at tackling Australia’s housing crisis by addressing critical financial gaps in the affordable co-operative housing sector.
The project, Building the Financial Capacity of Australia’s Cooperative Housing Sector is backed by AU$281,315 in funding, and brings together key industry partners including employee-owned SGS Economics and Planning Pty Ltd; the Business Council of Co-operatives and Mutuals (BCCM); non-profit provider Common Equity Housing Ltd; and mutuals Bank First; Australian Unity Limited and Bank Australia Ltd.
The project seeks to unlock the potential of co-operative housing as a scalable and sustainable solution to Australia’s growing affordability challenges. Using scenario-based prototype modelling, the research will examine the sector’s financial viability, identify new pathways for investment and propose policy reforms to support long-term growth.
Expected outcomes include new sector knowledge, enhanced investor confidence and practical financial toolkits and policy guidelines to support the expansion of co-operative housing as a recognised tenure class.
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Melbourne School of Design’s associate professor Julie Tian Miao said the project comes at a critical time for housing policy innovation.
“Australia’s housing system needs new models that are both financially viable and socially sustainable. Co-operative housing has enormous untapped potential, and this project will provide the evidence, tools and policy insights needed,” she said.
BCCM CEO Melina Morrison highlighted the role of member-owned enterprises in addressing housing needs.
“Co-operative housing is a proven model internationally, but remains underdeveloped in Australia due to structural barriers to capital, visibility and market awareness,” she said.
“This project brings together the research, sector capability and financial institutions needed to address those barriers and support the development of fit-for-purpose financing pathways. It also highlights the role mutual banks and member-owned financial institutions can play in diversifying Australia’s housing finance system, particularly where long-term, community-focused models are required.”
Liz Thomas, CEO of non-profit housing provider Common Equity Housing, said the project represents a significant opportunity for the sector.
“The future of co-op housing in Australia is dependent upon it being able to grow at scale. This ARC Linkage project will help build a clearer picture of the financial and policy settings needed to strengthen and scale co-operative housing in Australia.
“The sector has a clear ambition to grow its share of housing over time to 10 percent of all Australian housing, and that depends on sustained capital investment, reliable income streams and new financing models beyond traditional government funding – particularly as rental stress deepens. This research will help the sector turn growing financial sector interest – not least from mutual banks – into partnerships with housing co-operatives that can drive the next phase of growth.”
By enabling new finance mechanisms and policy support, the project aims to deliver benefits well beyond housing supply. These include completing Australia’s affordable housing continuum, generating significant public savings, empowering communities and supporting a vibrant and growing cooperative economy.
Main image: Common Equity Housing Ltd (CEHL) – Herbert St Village Dandenong
