Can the private sector ever cost-effectively AND the profitably build social housing? A simple economics-101-multiplied-over-time argument might be that if they could, they would. But they haven’t so they can’t.
Australian Architect and Professor Tone Wheeler takes a less speculative approach by setting out the basic costs — everything from land to profit — that a private developer needs to cover in order to build housing of ANY kind. Wheeler then sets out to mitigate those costs, bit by bit, with the goal of creating a social housing unit that can be built profitably by the private sector.
In spite of all his chiseling and penny-pinching, he concedes defeat and concludes by rehabilitating a critique of Australia’s HomeBuilder program.1 Read more in ARCHITECTURE & DESIGN: Tone on Tuesday: On Social Housing Part 2
- See in The Conversation: Scott Morrison’s HomeBuilder scheme is classic retail politics but lousy economics