Affordable housing
What is affordable housing?
Housing is considered affordable if housing costs are less than 30% of gross household income. Households spending more than 30% of income on housing costs are described as being in housing stress. We know that housing stress impacts on quality of life and the ability to afford other living costs.
Affordable housing is designed for the needs of people employed who are low to moderate income households and is priced so families are able to meet other basic living costs such as food, clothing, transport, medical care and education. Affordable housing differs from social housing in that it targets households who are employed. Social housing generally caters to households experiencing high levels of housing stress and social disadvantage and who may not be employed in the workforce.
The purpose of Councils Affordable Housing Strategy is to increase affordable rental housing for moderate-income key and essential worker households in order to maintain a liveable and prosperous City.
Willoughby Council adopted the Affordable Housing Strategy in 2020. The strategy Identifies three outcomes areas as:
- Affordable housing supply - Creating supply of affordable housing through housing targets and policy.
- Affordable housing assets - The effective management of Councils affordable housing assets.
- Advocacy and leadership - Advocating for affordable and social housing needs within Willoughby.
The strategy acknowledges that Council cannot directly influence affordability in the local housing market, or reasonably provide the required volume of affordable rental housing within the local government area (LGA).
Who are essential workers?
In Australia and internationally, workers whose wages are typically set at a national or state level, including teachers, nurses, police and fire and emergency personnel, are considered essential workers. This also includes support and ancillary workers in healthcare, education and emergency services; workers who support the labour force (for example, childcare and aged care workers); and low paid workers who are important for local economies, such as hospitality and retail workers.
In Willoughby LGA the 2021 census data tells us that more than one third of households were experiencing housing stress. Research conducted by the University of Sydney in 2023, determined that Willoughby LGA is ‘very unaffordable’ for many essential workers on indicative salaries to purchase or rent a median-priced home in the area. For example, in Willoughby, the median price for a strata dwelling was found to exceed what would be affordable for an early career registered nurse by over $500,000 in 2023.
Benefits of affordable housing
Affordable housing delivers significant benefits to the local economy through diversification of the labour market, increased job retention and increased productivity. We know that increasing unaffordability of housing in the LGA means that less people employed in emergency, health and other essential service sectors are resident in Willoughby. This has impacts for community resilience, reducing our ability to respond quickly to emergencies and for resourcing and funding of essential services including for example workforce recruitment and retention costs associated with health and emergency services.
Provision of affordable housing also has impacts for wellbeing, providing low to moderate income renters with an affordable, secure housing option, leading to improved health and employment outcomes, a greater sense of safety, independence and social connectedness.
An increased supply of affordable housing also provides opportunities for local young people to continue to live and work in their community.
How can we provide affordable housing?
Willoughby City Council was one of the first metropolitan Councils to recognise the need for more affordable housing.
Council recognises affordable housing as a vital element of social and economic infrastructure and has committed to increase the supply of affordable rental housing through affordable housing targets and policy.
We do this by requiring the dedication to Council of complete dwellings or their cash equivalent equalling up to 10% of the accountable total floor space of new multi-unit dwellings in identified zones within the Willoughby LGA.
These essential worker assets are then strategically managed to optimise social outcomes and financial sustainability.
In summary
- The lack of affordable accommodation in Willoughby means that fewer essential workers are choosing to live in the local government area (LGA).
- In Chatswood central business district (CBD), over 40% of households are experiencing housing stress due to rental costs and over 30% of households are experiencing mortgage stress.
- In Willoughby LGA there are half as many affordable housing dwellings than the average for NSW.
- Rental affordability continues to diminish in Willoughby LGA.
- There has been no real growth in the number of affordable rental properties available within the LGA for 15 years.
- The lack of affordable housing for key workers is impacting on the level and cost of providing essential services to the local community.
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In Chatswood CBD, almost 40% of households are experiencing housing stress due to rental costs
A household paying more than 30% of their income on housing costs is considered to be experiencing housing stress. On average, the 2021 census shows that 34% of the 10,714 rental households in Willoughby LGA were experiencing rental stress. This figure varies significantly between suburbs. In Artarmon, Castle Cove, Chatswood West and Naremburn, between 26% and 30% of households were experiencing rental stress. In contrast, most other suburbs had more than 30% of households in rental stress, with Chatswood at 38% and Northbridge at 37%.
Rates of rental stress in the Willoughby LGA are comparable to the rest of Sydney (35%), but higher than the adjacent LGAs of North Sydney (27%) and Lane Cove (27%). Unsurprisingly, the suburbs experiencing the highest level of rental housing stress are also suburbs with a higher proportion of low income households.
In Willoughby LGA there are half as many affordable housing dwellings than the average for NSW
The 2021 census data shows that 1.8% of Willoughby households live in social housing, which includes public and community housing. This is significantly lower than the average across Greater Sydney, where 4.1% live in public and or community housing. As shown in the chart below the number of people living in housing managed by government or community housing providers has not increased significantly since 2011, hovering at 500 households. By contrast private rental housing has increased by more the 2500 households. This means that there has been no real growth in the number of affordable rental properties available within the LGA for 15 years.
Rental affordability continues to diminish in Willoughby LGA
In 2023, SGS Economics’ Rental Affordability Index assessed the rental stress of areas across Australia. Almost all postcodes in Willoughby LGA were found to have unaffordable rents, with Northbridge performing the worst at ‘severely unaffordable’. Only Artarmon was deemed to be moderately affordable in the LGA by this study.
The unaffordability of rental accommodation is directly impacting on the number of essential workers who can afford to live in Willoughby
Research conducted by the University of Sydney titled Tracking the Housing Situation by Gilbert, Nasreen and Gurran shows that housing unaffordability has a direct impact on the local essential worker labour force. Willoughby ranks in the top 10 LGAs in NSW with the lowest concentration of essential worker residents, alongside neighbouring LGAs such as North Sydney, Mosman, Ku-ring-gai and Lane Cove.
The study determined Willoughby LGA to be ‘very unaffordable’ for many essential workers on indicative salaries to purchase or rent a median-priced home in the area. For example, in Willoughby, the median price for a strata dwelling was found to exceed what would be affordable for an early career registered nurse by over $500,000 in 2023.
The increasing unaffordability of housing in the LGA means that less people employed in emergency, health and other essential service sectors are residents in Willoughby. This has impacts for our ability to respond quickly to emergencies that may occur in the LGA and for resourcing and funding these services including, for example - workforce recruitment and retention costs.
Just over 20% of households in Chatswood CBD are experiencing housing stress due to mortgage costs
Around one fifth of the 7,397 households with a mortgage in the Willoughby LGA are experiencing mortgage stress, that is households spending more than 30% of their income on their mortgage payments. There is significant variation between suburbs within Willoughby LGA however households in Chatswood CBD are most likely to be experiencing mortgage stress.
Councils research indicates that the proportion of households in Willoughby experiencing housing stress since 2021 has increased
The Community Wellbeing Survey(PDF, 4MB) conducted by Council in 2023 found 38% of local residents reported unwillingly sacrificing spending as a direct result of housing costs. This is a significant jump when compared with Council’s 2021 (22%) and 2019 (21%) surveys.
Further, Council’s survey results show that younger residents (aged 16 to 49), people from CALD backgrounds and people living in multi-unit dwellings were more likely to need to sacrifice spending to meet their housing costs.
Housing costs are a major contributor to resident’s decisions to move out of the LGA to areas that are more affordable. The lack of affordable housing in the LGA directly contributes to the level of social cohesion, connection and resilience of the Willoughby LGA population.
Partnership for management of Willoughby Councils affordable housing stock
Willoughby Council has a formal partnership arrangement with Evolve Housing to manage Councils affordable housing stock. Evolve Housing is an award-winning, tier-1 nationally registered community housing provider. Evolve Housing provide housing solutions to eligible people on very low to moderate incomes who are unable to access appropriate housing in the private market. Current vacancies and information on the application process can be found on the Evolve Housing website
Council has 63 essential worker housing dwellings (2025) that are managed by Evolve Housing to provide affordable housing to essential workers in our community.
- 37 were established and have been managed by Willoughby City Council for more than a decade.
- 13 additional properties were transferred to Council ownership in the 2023/2024 financial year.
- A further 13 properties were transferred to Council ownership in the 2024/2025 financial year.
Willoughby Councils affordable housing stock includes:
- 38 one bedroom dwellings
- 19 two bedroom dwellings
- 3 studios
- 2 three bedroom dwellings
- 1 four bedroom dwelling.
Council affordable housing tenants
Most of our tenants are employed in the care, health and services sectors.
Only a small proportion are pensioner households. These were existing tenants when these dwellings were transferred to Council in the early 2000s. As long term members of the local community Council agreed to continue to provide secure and safe accommodation for these households.
Willoughby City Council is currently undertaking planning for the following essential worker housing project:
Abbott Road essential worker housing project
Council’s Affordable Housing Strategy aims to increase affordable rental housing for moderate-income key and essential worker households in order to maintain a liveable and prosperous city.
Project description
This project will contribute 12 purpose built affordable housing homes to Councils existing affordable housing stock. The project comprises 12 units (9 x 2 bed and 3 x 3 bed units) over 3 levels and a basement level that includes 8 car parking spaces. The detailed design includes fixtures and finishes that minimise ongoing maintenance and running costs.
Project progress
Development approval (DA)
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- The deferred approval for the DA was received in September 2024.
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Project planning
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- Preparation of design drawings were finalised to support the construction certificate (CC) in November 2024.
- A section 4.55 application addressing all of the conditions listed in the deferred DA was approved in June 2025.
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Tender for demolition and construction
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- Detailed tender documentation was completed in December 2024.
- Tender documents were circulated in January 2025.
- Council closed the tender process in May 2025 due to changes in the planning controls that applied to the site.
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Assessment of new emerging opportunities
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- In May 2025 Council commenced a review of the project to assess the impact of changes announced by the State government to planning controls at the site. The review will also investigate new opportunities to adopt a partnership approach to delivery of affordable housing at the site.
- A report proposing options to progress the project is being prepared for Councils consideration in late 2025.
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Contact person
Jo Manion, Affordable Housing Specialist
Jo.manion@willoughby.nsw.gov.au