Are satellite cities the next hotspot?

Strong government support and well-planned strategies to connect skilled workers to job opportunities near them are key to unlocking housing affordability and improving urban productivity, new study finds .

The recent report by the Australian Housing and Urban Research Institute (AHURI), carried out by researchers at the University of Sydney, indicates that partnerships between all three levels of government are essential to spur growth economic – but specific strategies to ensure rental housing remains affordable and accessible to low-income households have yet to be implemented.

The great shift

According to research, there is a "mismatch" between the location of jobs and the availability of affordable housing for low wages in Sydney and Melbourne. The report adds that cheap rents in Sydney are usually found in the outlying suburbs, which are, on average, more than 50 kilometers from the central business district.

Professor Nicole Gurran, lead author of the study, says their analysis "underscores the need for different types of interventions to address housing affordability and accessibility to housing. # 39; employment in different localities'.

Gurran says that “in areas rich in employment and transportation, and where median market rents are more than 20% above affordable levels, affordable rental housing for low-income households will likely be provided only through regulatory planning policies. and funding of programs that support the development of affordable housing for which eligibility is limited to target households. "

She adds that in regions with affordable housing but where employment opportunities are scarce, investments in infrastructure can help connect households to employment.

City offers and strategic planning

Research indicates that place-based programs or "city agreements" can be used to improve the productivity and livability of cities, but they require collaboration between all levels of government and the community . He adds that for agreements with cities to be effective, strategic plans should focus on "job growth, transport connectivity, and housing accessibility and choice".

The report reveals that at the end of 2019, nine city agreements were already in place in Australia – Perth, Townsville, South East Queensland, Adelaide, Darwin, Hobart, Launceston, Western Sydney and Geelong.

The role of satellite towns

Regional and suburban areas, also known as "satellite cities", play a crucial role in providing affordable rental housing to working poor, the study says.

Geelong in Victoria and Wollongong in New South Wales, for example, are connected to the capitals of Melbourne and Sydney respectively by efficient transport systems. These areas also provide residents with affordable housing options.

"It is important that housing growth in these small towns is offset by local employment and transportation options to ensure low income households are not forced to commute to the big cities, ”Gurran says. “These satellite towns are often very car dependent and there is a risk that new residential areas will be underserved by public transport, compromising the goals of affordable living.”

Research also indicates that existing 'anchor' institutions, including medical institutions and universities, can provide a foundation for establishing new 'knowledge industry clusters' . These, along with the low-cost housing market, are driving businesses and employees out of metropolitan areas.

"The real opportunity is for companies to set up themselves there and take advantage of the fact that for their workers to live and work in a closer radius with lifestyle benefits is very appealing" , said Gurran. "So you actually need just as much investment in public transport in these satellite areas, as well as in magnetic infrastructure like universities that can encourage a set of activities around it. ;they."

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