A flagship New South Wales government policy designed to boost housing density while delivering affordable homes is failing to meet its core affordability objectives, according to a damning new analysis.
Promises vs Reality in Housing Policy
The Infill Affordable Housing (IAH) scheme, which offers developers significant density bonuses in exchange for including affordable apartments, has come under fire for producing predominantly high-end properties while making minimal impact on Sydney's worsening housing affordability crisis.
Under the policy, developers can secure permission to build taller and denser residential projects if they designate between 5% and 10% of apartments as 'affordable housing'. However, investigation reveals that many participating projects are located in affluent suburbs where even discounted apartments remain out of reach for most low and middle-income earners.
Luxury Focus Undermines Affordable Goals
Critics argue the scheme has become a mechanism for developers to maximise profits through premium developments while contributing token affordable units that fail to address the broader housing accessibility issues.
Key concerns identified include:
- Affordable units being concentrated in expensive areas with limited public transport
- Lack of income thresholds that would ensure help for those most in need
- No requirement for long-term affordability covenants
- Minimal oversight of whether discounted units reach target demographics
Industry and Community Backlash
Housing advocates and urban planning experts have expressed growing frustration with the policy's implementation. "What we're seeing is a well-intentioned policy being exploited to deliver luxury developments with a thin veneer of affordability," noted one housing policy analyst.
Community groups in suburbs targeted for intensive development have raised concerns about infrastructure strain, with local services and transport networks failing to keep pace with rapid population density increases.
Government Response and Future Directions
The NSW government faces mounting pressure to overhaul the scheme, with calls for stricter affordability requirements, geographic distribution mandates, and stronger enforcement mechanisms.
As Sydney's housing crisis deepens, the failure of the IAH policy to deliver genuine affordable housing solutions represents a significant setback in the state's efforts to create more inclusive and accessible urban communities.
