Social versus affordable housing – an explainer
- 24 Jul 2023
What is the difference between ‘social’ and ‘affordable’ housing?
Many people use these terms interchangeably – but they are two different things.
Social housing refers to government-subsidised short- and long-term rentals. Two types of social housing are ‘public housing’ which is owned by the government and ‘community housing’ which is managed and sometimes owned by not-for-profit organisations. Social housing rents are calculated based on income – typically 30 percent of a renter’s income – and target people on lower incomes or benefits.
On the other hand, affordable housing refers to housing options which are available at a rent or price lower than the local market rate. Affordable housing is considered to be accessible for those on low or moderate incomes. Rents are based on market rates – typically 25 percent less than what the market is charging for similar housing.
Ten years ago, Baptcare launched a subsidiary, Baptcare Affordable Housing (BAH), providing well-located and well-built social housing for people on lower incomes who are at risk of, or are experiencing, homelessness.
To read more about our affordable housing projects, click the link below:
https://www.baptcare.org.au/services/housing/affordable-housing
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