Tax breaks to boost private construction of build-to-rent projects have been introduced in the hope of unlocking 80,000 units across the nation.
But the NSW government is also getting in on the action in the hopes of providing homes its frontline service staff can actually afford.Â
Essential workers will pay rent at an undisclosed discount to market rents in Sydney, where prices are the highest of any Australian capital, under plans disclosed on Monday for one state-owned, inner-city location.
It is slated for at least 200 government-owned, build-to-rent units, alongside another 300 privately owned homes on the same site.
The Camperdown land sits near the maligned Parramatta Rd and near a major hospital, but it has been left fenced-off and disused after being used in the development of the WestConnex motorway.
The state's development agency is not expected to start construction until 2026 and the location is unlikely to house teachers, nurses or emergency responders until at least 2028.
The announced development came as state agencies faced an ongoing parliamentary inquiry into essential-worker housing.
High land values in many locations created extra problems for the development of housing that essential workers could afford and the government had a key role in increasing supply, planning department official Tom Loomes told the inquiry.
"Particularly in markets where there might be feasibility issues, or there might not necessarily be that level of demand from the private sector," he said.
Planning Minister Paul Scully acknowledged the Camperdown development was an example of the government stepping in where needed.
"We'll continue to make that intervention because if we don't ... we won't get that essential worker housing," he said.
Property Council NSW executive director Katie Stevenson said developers were willing to collaborate and the plan could be the first of many if the government could find ways to expand build-to-rent construction.
"Government ownership of the site means rental income could help fund future expansion of the essential worker housing program," she said.
But the plan has faced criticism for lacking social housing.
"Affordable housing often is not that affordable ... and this piece of land is just crying out for some more public housing on it," local Greens MP Kobi Shetty said.
Housing Minister Rose Jackson defended the absence, saying priced-out essential workers who were not eligible for social housing also deserved a place to live.
"There is a massive investment in public housing," she said.
"That has to sit alongside worker housing, affordable housing and market housing so that everyone gets a shot of living in our city."
State developer Landcom received $450 million in the budget for build-to-rent programs for essential workers at up to four metropolitan sites.
