Discrimination in Australian urban planning and infrastructure

Soaring real estate prices in Australia and congested cities with a shortage of housing have left many Australians in need of housing. Poor infrastructure makes it difficult for people to travel from inner cities to outlying suburbs where housing may be available. Those who cannot buy a home or find suitable rental properties are largely those working in low-income occupations. They are disproportionally minorities such as Black and Indigenous individuals and immigrants. While the government of Australia has promised to take steps to remedy the situation, as of 2023, it has not yet provided housing for those who are most in need.

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Background

Traditionally, Australia has had a high percentage of those who own their own homes, holding steady at around 50 percent since World War II ended in 1945. However, housing prices nearly doubled in the 1950s and rose through the 1970s. The Australian Bureau of Statistics estimated that the average price for a house in Sydney in 1970 was $27,500 (about $250,000 at today’s prices). In 2023, the median value of a house in Sydney was $1.1 million.

Deregulation of the financial industry in the 1980s created new avenues for financing. Lower interest rates and high demand drove housing prices up during the 1990s, with continued price increases through the 2010s. Although COVID-19 slowed the market for a time, in the wake of the pandemic, the housing market in Australia boomed, causing prices to rapidly increase. Many homes were bought by corporate investors, limiting opportunities for individuals to purchase them and increasing the chances of discriminatory practices in the private rental sector. Research has shown that up to 90 percent of those wishing to buy their first house were unable to do so. In the 2020s, the housing market in Australia was one of the most expensive in the world. Whereas demand for housing continues, the construction of houses has fallen critically behind.

Congested cities have added to the problem. Roughly two-thirds of Australia’s population live in one of the country’s eight largest cities. Twenty percent live in cities with a population between ten thousand and one million. Only about fifteen percent live in towns and rural communities. The government of Australia is aware of the problems that high urbanization has caused the country. A 2019 government report estimated that congestion alone costs the country $25 billion a year and is expected to increase to $40 billion by 2030.

Overview

In an environment of low availability and high prices, urban planning and infrastructure are not neutral. Downtown communities may be provided with improvements such as bike paths, open spaces, and strong civil and social services, including good hospitals and schools, better policing, and good roads (although some public spaces do not have adequate accommodations for those with disabilities). Other communities, primarily populated by people of lower socioeconomic status, experience fewer benefits from government planning. Many such neighborhoods are overpoliced and underfunded, marked by a lower level of government services, fewer public spaces, and inadequate infrastructures.

Historically, Indigenous people have been unable to afford housing and have experienced homelessness. Whereas roughly 67 percent of non-Indigenous Australians owned their own home in 2023, just 30 percent of the Indigenous population were homeowners. In 2023, the government estimated that the overall need for social and affordable housing to be 650,000 units. This dearth of available housing has pushed those who cannot afford a home into the private sector rental industry, where discrimination is difficult to monitor and enforce. Many marginalized people live in overcrowded housing with informal agreements that afford them little protection from eviction and rent hikes. This housing often lacks basic services, such as a place to cook.

Given that the private rental sector is governed by renters’ ability to pay, landlords may intentionally or unintentionally rely on stereotypes to “cherry-pick” renters to reduce their risk. This behavior reduces the opportunities for housing among marginalized groups. Socioeconomic status is particularly important as those in the lower wealth brackets face the most competition for affordable housing and increased (often subtle) forms of discrimination. Because Australia’s subsidized housing is overwhelmed, many who qualify for this benefit are nonetheless pushed into the private rental sector.

According to a 2023 report, the government of Australia spends $1.6 billion each year to fund homelessness and housing services through the National Housing and Homeless Agreement. However, a productivity commission found that the program was ineffective, and Australia continued to struggle with a lack of affordable housing. Many lower-income people experienced housing stress because they spent a large part of their income on housing. Increased and unmet demand for social housing and homeless services left the most vulnerable with no safety net.

The government’s plan to correct the issues around urban planning and infrastructure includes increased public transportation. The number of jobs in the center of the city is larger than the number of residents who populate the outlying suburbs. Congestion is debilitating, and public transportation is vital to the functioning of the economy. The government also hopes to connect its major cities to outer regions by high-speed rail, hoping to push its population into areas with lower population density. It continues to set out plans to build more affordable housing and social housing. However, its most recent promises have been to construct tens of thousands of new homes. However, the actual number has not come close to meeting this demand. It has yet to make a significant impact on the serious need for housing in the reach of people in the lower socioeconomic layers of the economy. The most vulnerable—women, First Nations people, people with disabilities, the elderly, and immigrants, among others—remain at risk.

Bibliography

Centre for Population. “Planning for Australia’s Future Population.” Government of Australia, June 2019. population.gov.au/sites/population.gov.au/files/2021-08/planning‗future‗population.pdf. Accessed 18 June 2023.

Forster, C. “The Challenge of Change: Australian Cities and Urban Planning in the New Millennium.” Geographical Research, 2006, vol. 44, no. 2, pp. 173-182. doi.org/10.1111/j.1745-5871.2006.00374.x. Accessed 18 June 2023.

Maalsen, Sophia, Peta Wolifson, Dallas Rogers, Jacqueline Nelson, and Caitlin Buckle. “Understanding Discrimination Effects in Private Rental Housing—Final Report.” Australian Housing and Urban Research Institute Limited, Sept. 2021. www.ahuri.edu.au/research/final-reports/363. Accessed 18 June 2023.

Mehra, Prashant, and Johanna Leggatt. “Australian Housing Crisis: The High Price We’re Paying.” Forbes, 24 May 2023. www.forbes.com/advisor/au/property/high-cost-of-australian-housing/. Accessed 18 June 2023.

Whitzman, Carolyn. “Australian Urban Planners Need to Address Racial and Social Inequities.” Edited by Marie McInerney. Croakey Health Media, 2 July 2020. www.croakey.org/australian-urban-planners-need-to-address-racial-and-social-inequities/. Accessed 18 June 2023.