b'JULY 2020Housing Supply and Demand60,00050,00040,00030,00020,00010,00001990 2000 2010 2020 2030 2040Demand: high-low range Demand: best estimate Actual housing supplyFIGURE 3 - Actual housing supply and projected housing demand (Greater Sydney 19902040)Source: Figure 7, DPIE, A Housing Strategy for NSW: Discussion Paper, May 2020, p23.However, more effort has been focused on burdening The Urban Taskforces believes fundamental policynew housing developments with requirements to failures have resulted in consistent under supplyfund the provision of social and affordable housing, of housing to meet demand in Greater Sydney.which makes no economic sense. Unmet demand, and cumulative fees, contributionsIn short, why should new home buyers fund the and charges are contributing significantly to theaffordability solution? It is clear that policy failure affordability problem faced by Sydney home buyers.has created the problem, with too much planning As Daley, Coates and Wiltshire neatly conclude inregulation and the system slowness generating their Grattan Institute paper: supply shortfalls and costs that push up houseIt took neglectful governments two decades toprices. The problem is exacerbated by economically create the current housing affordability mess 16 . inefficient levies and overall taxation structures.Who funds Social and Affordable Housing? Figure 4 demonstrates that in Greater Sydney new housing supply has trailed population growth The state government has traditionally providedsince 2005. social housing funded from consolidated revenue.If the planning system is to contribute to achieving But over the past three decades the government hassocial objectives for affordable housing, it should progressively vacated this role while the demand forimplement an incentive-based affordable housing social and affordable housing has kept rising.scheme that offers developers faster approval The government has sought to address social andpathways, additional floor space (FSR bonus) or affordable housing issues through partnerships, suchheight bonuses where affordable housing is included as the welcomed NSW Communities Plus scheme. in projects. 1516 Daley, J., Coates, B., and Wiltshire, T. Housing affordability: re-imagining the Australian dream. Grattan Institute,2018, p3.'