b'JULY 2020Population growth and new homes - Greater SydneyNew supply caught up with new demand in 2017-18120k 60kPopulation growth90k 45kNew homes60k 30k30k 15k0 01974-75 1979-80 1984-85 1989-90 1994-95 1999-2000 2004-05 2009-10 2014-15 2019-20Population increase New homesFIGURE 4 - Source: Douglas, J. Population growth viz new home completions, May 2020, EvidionThese mechanisms will impact on optimal economicIf affordable housing contributions are to solve the efficiency, but nonetheless may be necessary tohousing affordability crisis, it is critical that they be correct the markets failure to provide affordablyimposed as a broad-based levy that it separate priced homes for key workers such as teachers,from other burdens on the production of new homes nurses, childcare workers, aged care workers, police,and apartments.security staff, cleaners and households with incomesAffordable housing contributions only drive up the under a nominated threshold, of approximatelycost of market-priced housing and penalises new $75,000 per annum. Key and lower paid workershome and apartment buyers. It effectively shifts the often work in 24-hour rotational shifts and shouldcost of this socially desirable good from the state not be subject to commutes that are so long they aregovernment, to new home and apartment buyers, excluded from workplace participation. This has avia a time-consuming and often fraught negotiation negative impact on those people as individuals andprocess with Councils.is clearly a poor outcome for society as a whole. However, there is no justification for burdeningThe Urban Taskforce believes that the optimal way developers or new home-owners with solving thisto deliver a significant supply of affordable homes social and economic policy issue. It appears thewithout deterring investment and driving up the government has taken the politically palatableprice of housing for other buyers, is a combination approach of charging developers and using theof incentive-based schemes and inclusionary readily available tool of mandatory planningzoning, where governments signal up front the approvals to implement its approach. level and delivery method of affordable housing prior to any re-zoning or substantial change to height or FSR controls. 16'