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Indigenous housing - assessing the long term costs and the optimal balance between recurrent and capital expenditure

Summary

Project Number: 30282
Research Theme: Indigenous_Housing
Project Leader: Hall, Jon
Funding Year: 2004
Research Centre: RMIT-NATSEM

Research & Policy Bulletin

Issue 072: The cost of housing in diverse Indigenous communities in Australia

Both state owned and managed Indigenous housing organisations (SOMIH) and Indigenous community housing organisations (ICHOS) experience operating deficits greater than those of mainstream public housing agencies. This deficit is due to poor quality and high maintenance housing stock, low rental streams, poor dwelling maintenance, poor management practices, and remote locations.

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Description

This research involved collecting and analysing data on costs and revenues from SOMIHs in six states (Queensland, New South Wales, Victoria, South Australia, Tasmania and Western Australia) and a sample of ICHOs that provides for the geographic distribution of dwellings, national coverage, and small and large ICHOs. Financial information on the ICHO sector is incomplete. ICHOs managing almost 50 per cent of the sector's housing stock do not report to government on their incomes and expenditure.

The key findings of the research are:

• For state owned and managed Indigenous housing organisations (SOMIH) in 2003-04 the average annual operating deficit was $2,415 per dwelling. This compares with $269 for mainstream public housing. The national shortfall of revenue to costs across the SOMIH sector is estimated to be $44 million per year.
• For Indigenous community housing organisations (ICHOs) the average annual operating deficit was $2,400 per dwelling in remote locations and $3,800 per dwelling in very remote locations. The national shortfall of revenue to costs across the ICHO sector is estimated to be $52.6 million per year.
• The revenue and cost structures of Indigenous housing organisations are affected by geography. For example, amongst SOMIHs, there are higher recurrent cost pressures in Western Australia because of a higher concentration of dwellings located in remote and very remote areas, and the associated higher maintenance costs.
  

More Information

Research and Policy Bulletin: Issue 072: The cost of housing in diverse Indigenous communities in Australia
124KB PDF Document

Final Report: No. 093: Indigenous housing - assessing the long term costs and the optimal balance between recurrent and capital expenditure
1.35 MB PDF Document