Modelling the effects of affordable housing 'sticks' and 'carrots' for developer-delivered projects

Abstract

The literature suggests both “Stick” and “Carrot” initiatives can encourage property developers to include Affordable Housing in their developments. Such initiatives include affordable housing contributions or requirements (the stick) and land cost subsidies, density bonuses, access to low-interest finance, reduced planning timeframes and reduced car parking requirements (the carrots). Despite their widespread application internationally, Australian developers and policymakers have resisted affordable housing incentive structures. Recent legislation in Victoria empowers local planners to approve affordable housing contributions and incentives on acase-by-case basis. This paper provides aquan..