Governments warned over housing ‘segregation’

New research is sounding the alarm over government real estate interventions that exacerbate existing housing market pressures.

Segregation in Australian cities has been increasing, resulting in an income and economic class divide outcome, according to research by the Australian Housing and Urban Research Institute.

Their research concluded it has been detrimental to social cohesion and community wellbeing.

It studied changes in neighbourhoods in Australia’s five largest capital cities (Sydney, Melbourne, Brisbane, Adelaide and Perth) over two census periods (2011 and 2016).

Sydney emerges as the city where the effects of segregation and exclusion are the most pronounced, not by disadvantaged neighbourhoods being isolated, but by affluent neighbourhoods isolating from the rest of the city.

Melbourne was a more “porous” city while Perth echoes Sydney, but weakly. Brisbane and Adelaide are the most accommodating cities.

The report calls for policies that encourage a healthy spatial mix of housing and tenure types, especially in affluent neighbourhoods, which are typically the closest to the best employment, transportation and social opportunities.

The report led by three academics from Sydney University, Somwrita Sarkar, Nicole Gurran and Rashi Shrivastava says socio-economic inequities should be addressed by all levels of Australian government through infrastructure, housing assistance and planning.

It warned of interventions that exacerbate existing housing market pressures, which trigger gentrification displacement and exclusion of lower-income earners.

“Any segregation has negative effects, whether this segregation occurs at the affluent end or at the disadvantaged end,” the report said, noting spatial sorting in Australian cities had been driven by income and economic class segregation, rather than other demographic criteria such as ethnic, linguistic or minority group characteristics, as is more common in the United States.

The report comes at a time when the City of Sydney seeks new rules to control property developers replacing old residential apartment buildings on big land holdings, with fewer, more expensive replacement apartments. The popular redevelopment push stems from state government legislation that encourages strata renewal of aged strata blocks.

For six decades the inner-city housing stock has been dominated by studios or one-bedroom apartments which has allowed the increasingly popular area to remain relatively affordable. Due to the demand for larger apartments, there has been increased demolition activity with the council citing six recent applications, including The Chimes in Potts Point.

The six proposals would increase the total residential floor area by between 18 and 166 per cent, along with a reduction in the number of dwellings of between 19 and 71 per cent. Across the six is a loss of 121 dwellings. The council wants to limit developments to a maximum loss of 15 per cent of dwellings on site.

They hope the new Local Environmental Plan will be in place by November, but the proposal will first shortly go on public exhibition for community input.

Originally published as Governments warned over housing ‘segregation’