ACHA Blueprint
Co-operative Housing – the missing piece of Australia’s housing puzzle
Australia needs more housing co-operatives
Up to 30 per cent of Australians now rent long-term, primarily in the profit-driven private rental market. New models of renting are needed to provide stable, long-term tenancies. Rental Housing Co-operatives (co-ops) provide a distinct alternative in Australia’s affordable housing sector.
In Australia and overseas, co-ops have been effective financial
managers of housing for decades. Co-ops offer build-to-rent housing that delivers long-term, stable and affordable housing for people on low-moderate incomes, including people who receive government income support, key workers, people working part-time, students and independent retirees.
Co-ops are the missing piece of Australia’s affordable housing puzzle.
How housing co-operatives work
In co-op housing, members rent like they own
Co-ops are a community-driven housing solution made up of members who work together to create the security of ownership and the affordability of renting.
Members live independently in their own homes. They manage the housing together and share the benefits of co-operative housing management.
Co-ops give members a sense of agency and empowerment which contribute to positive outcomes in health, education and employment.
The Positive Impact of Funding Co-op Housing
Benefits of housing co-operatives
- Members control the management of their housing
- Affordable rent and stable tenure for people on low to moderate incomes
- Members pool their skills and resources and build strong communities
What Australian Governments can do to support the growth of co-operative housing
“As governments seek ways to accelerate supply, there is growing recognition that quantity without quality will not solve the housing crisis.
We need a variety of solutions that support long-term social, economic, and environmental outcomes, not simply more units delivered faster.” Tim Ross, Chief Executive Officer – CHF Canada Co-operative Housing
The Australian Co-operative Housing Alliance (ACHA) advocates for government support to enable the co-operative housing sector to grow to at least 10 per cent of Australia’s total housing stock. It is currently less than 1%.
ACHA recognises rental and limited equity co-operative housing as proven, scalable models that can contribute to a more diverse, secure and affordable housing system. These models should be supported through existing community housing funding programs, including the Housing Australia Future Fund (HAFF).
In addition, ACHA calls for policy settings that enable co-operative housing organisations to leverage their balance sheets and partner directly with housing consumers and financial mutuals. This includes pathways for households to make a modest deposit and secure an equity stake in co-operative developments, and regulatory reforms to help mutual banks to lend and invest to co-op housing projects.
Supporting these approaches will expand housing choice, strengthen renter participation, and deliver long-term housing, affordability and stability for Australian households.
About Co-operative Housing
In Australia and overseas, housing co-operatives have been effective financial managers of housing for decades because member renters have ownership and control in the management of their housing.
Co-ops provide a distinct alternative within Australia’s housing sector by offering varied ownership and management models.
The unique nature of co-operative housing – characterised by effective management, personal responsibility, and community diversity- plays a critical role in its popularity.
The structure of co-operatives enables tenants to have substantial control over their living situations. The model promotes consumer choice and emphasises the importance of tenant input in decision-making processes.
- Co-op members control how housing is managed
- Members pay affordable rent, calculated as a percentage of their income
- Co-op housing is perfect for low-moderate
income earners like key workers and people who receive government income support - To increase the supply to 70% of Australia’s social housing stock, we need governments to set aside more land and funding dedicated to establishing housing co-ops
- Housing co-ops are the missing piece
of the affordable housing puzzle
"Co-op members enjoy the benefits of stable housing and contribute to how it is managed without the financial burden of home ownership."
Housing Co-operatives: International experience
Europe has a large housing co-op sector that provides long-term, secure, affordable rental housing. In many parts of Europe, housing co-ops have been a part of the mainstream housing market for more than 700 years and make up to 30 per cent of housing in some European cities.
Development costs are controlled by minimising risk for investors through regulatory and planning settings, setting aside land for affordable housing and detaching the housing sector from market volatility and speculation.
Key insights from BCCM 2024 tour of European housing co-operatives
- European rental housing co-operatives at scale provide liveable cities for everyone
- Private/public funding models secure affordable housing co-operative supply in perpetuity
- Equitable and long-term housing security ensures a good social mix and sense of home
- Tenants’ participation in planning and operations ensures affordability
- Housing co-ops focus on people-centred urban planning and design
Stability and social connection
New research (2024) by Western Sydney University, funded by ACHA and the Australian Research Council, revealed that active participation in co-ops correlates with
- A sense of agency, voice, and empowerment
- Health and wellbeing, including for the children of families living in the co-op community
- Skills development, employment, and education
- A strong sense of community, social networks, mutuality and reciprocity, and trust
- Satisfaction with housing stability, quality, and security
The research findings also revealed that the costs associated with establishing housing co-operatives are generally on par with other forms of community housing and noted that when greater co-op member participation in tenancy and property activities is considered, the overall costs were, in fact, less.
Examples of housing co-operatives
across Australia
The Vietnamese Housing Co-Operatives NSW is one of the best examples of housing co-operative living in action. It was established in 1993 by Vietnamese community members. They started with 10 properties and aimed to provide stable and affordable housing to non-English speaking people aged 55 and over, and their families. In 1996 a second co-op was established with a further seven properties. Today, the co-op manages 91 properties and tenancies.
The co-ops are located in some of the most disadvantaged areas of Sydney. Through active participation and democratic decision making from members, they have built a thriving co-op community. The co-op communities organise
Melissa’s Story
“I owe it all to the co-operative and the amazing opportunity and support I was given.”
About ACHA
The Australian Co-operative Housing Alliance (ACHA) advocates for the benefits of the housing co-operative model and the growth and diversification of the social housing sector in Australia.
ACHA is an alliance of Registered Community Housing Providers that deliver co-operative housing, including Common Equity Housing Ltd (CEHL) Victoria, Co-operation Housing (WA), Common Equity NSW, Common Equity Housing S.A. and United Housing Co-operative (as a representative of Victorian independent rental co-operatives). ACHA is supported by the Business Council of Co-operatives & Mutuals (BCCM).