Affordable Housing for Smart Innovative Cities

In the sector of economic growth, Australian Smart Cities are taking the approach of ‘innovation-led’ for employment growth. However, from evidence of cities around the globe, innovation-based cities are associated with less affordable housing. The lack of affordable housing is a serious issue as it has been identified as one of the major contributors that hinders the growth for a conducive environment of innovative cities. AHURI suggests that to support Australian cities’ innovation-led employment growth strategy, policies that encourage more affordable rental housing are crucial. 

Affordable rental housing will not only further encourage the employment growth, but also the innovation economies and productivity of the cities. Creating a diverse and affordable housing market in the city will require a holistic approach, and involves multiple stakeholders to work through. Insights from international evidence studied by AHURI suggest some examples of the steps cities can take, such as: 

• Mixing large and small, established and start-up, public, private, academic, and civic institution
• Focus large and small, long-term and immediate. Large investments in transit, high-speed Internet complement small strategies that boost productivity including reactivation of public spaces and community events
• Respond early through policy and planning to preserve affordability and diversity both within and outside of the innovation zone
• Innovative and sustainable financing
• Collaborative governance. Successful models involve business, academic and civic institutions, as well as government, local workers and residents in a collective governance approach

Reference:

Dowling, R., Maalsen, S., Emmanuel, L., & Wolifson, P. (2020). Affordable housing in innovation-led employment strategies (No. 333). AHURI final report.

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