Tenants in Sydney's inner west are facing uncertainty as a state government scheme aimed at boosting affordable housing leads to the demolition of older, low-rent buildings. Erina Delinicolas, a resident of Marrickville, learned of her building's planned demolition from a friend, not from official notice. Her art deco block could be replaced by a nine-storey development under the New South Wales 'in-fill' bonus policy.
The policy grants property owners up to 30% extra density near transport hubs in exchange for providing up to 15% of dwellings at 20% below market rent for 15 years. Critics argue it often results in a net loss of low-cost rentals. In Delinicolas's case, 17 low-cost units would be replaced by 43 apartments, with only eight designated as affordable. Current rents start at $380 per week for a studio, while the median for a one-bedroom in Marrickville ranges from $500 to $720.
Modelling by Shelter NSW indicates that in higher-value suburbs, developers capture a larger share of the bonus value—between 8% and 79%—leaving less benefit for renters. John Engeler, CEO of Shelter NSW, acknowledges the need for supply but advocates for permanent affordability. Professor Nicky Morrison of Western Sydney University warns that short-term incentives risk losing generational affordability and points to stricter policies in the UK.
The development application is being assessed by Inner West Council's planning panel under the state's Transport Oriented Development zones, which allow taller buildings near stations. NSW Planning Minister Paul Scully defends the policy, noting that affordable homes approved or in the pipeline exceed national targets. However, residents fear the Marrickville demolition could set a precedent for further loss of low-rent housing under the council's ambitious 'Our Fairer Future' plan, which proposes up to 30,000 new homes over 15 years.
