Experiences of Affordable Housing Policy - Planning Social Research - PLAN30003

Ella Anderson - 757195

Planning Social Research Workshop - PLAN30003

CONTENTS Introduction

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Preliminary Research

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Data Analysis & Preliminary Findings

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Significance Research Design References Semi-Structured Interview Direct Observation Guide & Protocol

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Cover Image: Google, (201), Satellite Image of Moreland.

ACKNOWLEDGEMENTS The researcher would like to thank the interviewees for offering their time and experiences for this study.

Experiences of Affordable Housing Policy: The NRAS in Moreland

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INTRODUCTION KEY URBAN ISSUE Housing affordability is a critical issue in Australia, as housing cost has disproportionately increased compared to household income, resulting in less disposable income (Thomas & Hall, n.d.). This discrepancy increased approximately 34% for Victorian renting households between 2006 and 2016 (Raynor, Dosen & Otter, 2017, p.12).

Affordable housing is defined as conveniently situated housing in relation to amenities ‘where the cost of housing is no more than 30% of the household’s income (Moreland City Council, 2014, p.12). Housing stress is described by the 30:40 indicator, meaning households who spend more than 30% of their income on housing and belong to the lower 40% of household incomes (Thomas & Hall, n.d.). Unaffordable housing can result in vulnerable people living in poor amenity areas, with less disposable income for necessities including food, healthcare and education (Raynor et al. Otter, 2017, p.11).

Housing affordability is a key political issue, as many voters believe the government is not engaging a proactive policy approach to alleviate housing pressures (Gurran & Phibbs, 2015, p.711). The National Rental Affordability Scheme (NRAS) was initiated by the Federal Labor Government in 2008, aiming to reduce renting pressures for low and middle-income earners (Thomas, n.d.). Eligible renters, those under a specific income threshold, pay 20% reduced rent off the market price and investors are incentivised to purchase properties through a tax-free arrangement (Thomas, n.d.). This scheme was discontinued by the Federal Liberal Government in 2014 and not carried out until its intended term (Gurran & Phibbs, 2015, p.723).

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MUNICIPALITY Moreland City Council is situated in Melbourne’s inner north ranging from 4 to 14km from the city centre with over 160,00 residents (Moreland City Council, n.d.). Compared with the Victorian average, there is a higher percentage of renters and those spending more than 30% of their income on rent in Moreland (Australian Bureau of Statistics, 2016).

The NRAS has been implemented in Moreland through the construction of apartment complexes in the early 2010s, with dispersed NRAS properties throughout the complex.

Figure 1: By author, (2019), Map of Moreland.

PLANNING PROBLEM In Moreland the planning problem is the lack of effective housing affordability policy and political change resulting in ineffective policy implementation. The potential benefits of the policy including possible socio-economic benefits cannot be entirely evaluated due to the discontinuation of the NRAS. Although the current federal government claims to have developed a ‘comprehensive housing affordability plan’ this does not address the upcoming market shortfall of affordable housing due to discontinuation of the NRAS (Australian Government: The Treasury, n.d.).

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RESEARCH GAP Although the Australian Government conducts a NRAS Quarterly Performance Report this approach focuses on quantitative data such as dwelling statistics. A research gap exists as there is a lack of knowledge of NRAS participant’s experiences from a social research perspective, rather than economically. The Australian Government reports a $235.2 million saving over three years due to the discontinuation of the scheme but this does not evaluate the financial, social and health wellbeing of NRAS participants. There is also a lack of academic literature analysing NRAS after 2014.

Figure 2: By author, (2019), Research Process Diagram 01.

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PRELIMINARY RESEARCH QUESTION To what extent have participants’ experiences of the National Rental Affordability Scheme been of benefit to their wellbeing, and how do participants view the effectiveness of government schemes that aim to tackle rental affordability?

APPROACH This research followed an inductive-deductive approach, as explained by Blaikie (2007) in figure 5 (p.8). The researcher hypothesised participants would believe NRAS benefited them as they paid less rent, yet also aimed to generate new understandings from data analysis. The units of observation included existing records, direct observation and semistructured interviews. The preliminary research question was linked to these observation methods as unit of analysis was participants experiences and opinions. Therefore, this research aimed to produce findings through data collection, as required by the research gap. These methods were intended to be complementary, therefore the researcher’s knowledge basis was first established by examining existing records, then conducting field work and lastly interviewing, before repeating the process.

Figure 3: By author, (2019), Inductive-Deductive Approach, based on Blaikie (2007, p.8).

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EXISTING RECORDS Government documents were examined, such as the Australian Government NRAS Quarterly Performance Report (2019) and the Moreland City Council Affordable Housing Strategy 2014-2018 (2014). Sentiment, in terms of positive or negative language, was examined based on two time periods; during the Labor Government (pre-2013) and during the Liberal Government (post-2014). The language of newspaper articles regarding housing affordability were also examined. Literature by housing affordability experts based in Melbourne was collected through academic search engines such as Scopus and Google Scholar. Related articles were found through citations from key journal articles such as Raynor et al.’s (2017) Housing Affordability in Victoria. Finding relevant records, specifically time periods and content, proved challenging and there was generally a lack academic literature focusing on NRAS. DIRECT OBSERVATION Direct observation included site visits to NRAS buildings, documented through only through field notes, not photographs, to protect privacy. This proved difficult as the guide was relatively unstructured and lacked observation themes and indicators. As this research focuses on policy regarding private residences direct observation of exterior public spaces presented limited results.

SEMI-STRUCTURED INTERVIEWS Potential interviewees were notified of the research through a notice in an NRAS building lobby. Interviewees included a young student, interviewee 1, and middle-age single mother, interviewee 2. These interviews were conducted following the Interview Guide (p.15). A Plain Language Statement was given to the interviewees who were asked to sign a Consent Form. The interview was framed by a chronological approach guiding questioning, with themes focusing on NRAS application process, current experiences and future housing plans. Interviews were audio-recorded, transcribed and analysed in NVivo through coding themes and sentiment. Interviewee recruitment was difficult as the notice lacked personalisation and the voluntary nature of the study was challenging. Limiting the researcher’s bias was an issue as often the wording of questions guided answers, potentially altering interviewee’s responses.

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Figure 4: By author, (2019), Research Process Diagram 02.

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DATA ANALYSIS & PRELIMINARY FINDINGS ANALYSIS Analysis of existing records found Moreland City Council categorised NRAS as generally unaffordable and as ‘discounted rent’ (2014, p.15). The current federal government’s policy focuses on housing affordability for first-time home buyers (PortilloCastro, 2017). Housing affordability experts believed the NRAS scheme to beneficial (Lawson et al., 2009, p.5), a significant and positive turning point in policy approach (Yates, 2013, p.117) and its discontinuation to be related to political ideologies (Gurran & Phibbs, 2015, p.723). While, newspaper articles described the scheme as problematic (Wallace, 2014), was vehemently opposed by an investor (Hunter, 2013) and more recently express concern about its phasing out (Bleby, 2018).

Field notes suggest little interaction between residents despite vast exterior space. The exterior building design lacks a human scale and features harsh materials, which is the only evident communal space. Outside areas are primarily used by resident children playing sport after school.

Figure 5: By author, (2019) Interview Word Cloud.

Both interviewees agreed the most difficult aspect of the NRAS was the application process, specifically the ‘extensive paperwork’ which was poorly worded (interviewee 1).

Both agreed the scheme was beneficial to their financial wellbeing, particularly interviewee 1 felt their mental wellbeing had improved owing to the high quality design of the property Experiences of Affordable Housing Policy: The NRAS in Moreland

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compared with previous rentals. Although interviewee 2 commented on the ‘convenience and easy functioning’ of the property, felt much more connected to community through schooling, and isolated from neighbours due to poor communal spaces. The main distinction between interviewees was that interviewee 1 felt optimistic about future housing possibilities and interviewee 2 felt concerned. Bother interviewees agreed the NRAS was effective for their current situation but that the government was not doing enough to increase housing affordability.

FINDINGS Based on data analysis it is suggested NRAS participants believe the scheme to be effective and beneficial to their wellbeing. This contrasts government and media publications which portray the scheme as problematic and not cost-effective. NRAS participants felt this scheme alleviated their current financial pressures but that government was not proactive in tackling housing affordability. However, participants have experiences issues with the scheme, particularly the application process and lack of social cohesion, yet this may be attributed to building design. There appears to be a disconnect, as interviewees are largely unaware of government housing resources.

Figure 6: By author, (2019) Research Process Diagram 03.

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SIGNIFICANCE This research aims to provide a knowledge basis for future government policy regarding housing affordability, yet from the perspective of policy participants.

This research addresses the disconnect between government policy and policy participants through adopting a social research approach that directly recognising participant value in terms of their experiences and opinions. A thorough evaluation of the discontinued NRAS policy would indicate effective and ineffective aspects regarding participants financial, social and health wellbeing, with the ability to inform future housing affordability policy. This qualitative approach to research fulfils a current knowledge gap, as previous NRAS policy evaluations focus on financial returns and ignore the human aspect.

Ultimately this would lead to financial savings as poor decision making would not be repeated. It is critical the discontinued NRAS is fully evaluated from multiple perspectives, especially NRAS participants, before introducing new housing affordability policy and therefore benefiting those experiencing housing stress.

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REFINED RESEARCH DESIGN QUESTION To what extent are participants’ experiences of the National Rental Affordability Scheme (NRAS) of benefit to their financial and social situation and health? How do participants view government actions that aim to tackle rental affordability?

This refined research question aims to establish the basis of participant experiences and connect this with views on government action, or lack thereof. The scope of the preliminary wording ‘wellbeing’ is defined. This question maintains significance to the planning problem and can be feasibly researched through the following refined methods.

APPROACH & ETHICAL CONSIDERATIONS The inductive-deductive approach proved effective, as the pilot study suggests the hypothesis is correct, yet further significant findings were made. Further iterations of research are required, including significant expansion in scope and sample size, refinements to methodology and an emphasis on interviews.

It is of paramount importance to protect interviewee’s privacy concerning their living situation. Participant consent, verbal or non-verbal, is required at each stage of interviewing, and interviewee’s will be made aware of their option to decline questions or terminate the interview at any stage. Sensitivity to the interviewee’s financial situations is important therefore questions do not ask for monetary amounts, rather focus on implications of financial security.

SCOPE As the NRAS is a federal government scheme implemented nationwide, it would be beneficial to expand the scope of the study beyond Moreland, Melbourne to ascertain priority differences and similarities further afield. This may include the states of New South Wales, Queensland and Western Australia due to their high number of NRAS properties (Australian Government, 2019, p.2-3). Although inner regional properties only account for 14% of NRAS properties, researching this area may highlight city and regional differences (Australian Government, 2019, p.3). The NRAS has been implemented the same in each

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state and so researching each state may determine whether a federal or potentially state based approach is most effective.

EXISTING RECORDS & DIRECT OBSERVATION Examination of existing records and direct observation was useful in establishing a knowledge basis. Yet to address the content and complexity of the research question engagement with interviewees proved the most effective in gaining insights most relevant to the research question. Although the primary focus of the refined research design is interviewing, the method for data collection will be expanded upon through a structured process for finding existing records. Direct observation was limited in the pilot study therefore further iterations may include site visits hosted by the interviewee through their NRAS property and communal areas. A less rigid and more informal interview may also allow the interviewee to feel more comfortable in a familiar environment, yet this is at the discretion of the interviewee’s consent.

SEMI-STRUCTURED INTERVIEWS As recruiting interviewees in the pilot study proved problematic, a snowball approach will be utilised, meaning initial interviewees will be requested to provide names of potential interviewees (Atkinson & Flint, 2011, p.1044). Contingent on this research being supported by government NRAS participants would be notified of this study with the option to take part.

This research requires a larger sample size for interviews to generate a larger data pool, as only two interviews cannot be regarded as a representative sample. Dworkin (2012) suggests a minimum of 25-30 interviewees (p.1320). However, the sample size should also consider a wider range of demographics, compared to the pilot study, such as variations in ages groups and household structures, to formulate a representative sample. Interviewing and developing separate interview guides for NRAS landlords, housing affordability experts and government service officers would offer multiple perspectives complementary to research into NRAS participant experiences.

The Interview Guide has been refined to reduce bias through question wording and allow interviewees to offer descriptive and authentic answers as Gill et al. (2008) argues also gains maximum information (p.292). Also, as supported by Gill et al. (2008), the guide

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has been refined to begin with easy questions (application process) and proceed to more difficult questions (views on government).

Although this research aims to focus on the wellbeing of NRAS participants, a costbenefit analysis considering participant’s financial, social and health wellbeing would be complementary to the qualitative data collected and assist in determining if the NRAS scheme should have been discontinued.

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REFERENCES Atkinson, R. & Flint, J. (2011). Snowball Sampling. In Lewis-Beck., M., Bryman, A., & Liao, T. F. (Eds), The SAGE Encyclopedia of Social Science Research Methods (p.1044). doi: http://dx.doi.org/10.4135/9781412950589 Australian Government. (2019). National Rental Affordability Scheme Quarterly Performance Report. Retrieved from https://www.dss.gov.au/sites/default/files/documents/05_2019/nras-quarterlyreport-march-2019.pdf Australian Government: Treasury. (n.d.). Housing Policy. Retrieved from https://treasury.gov.au/housing-policy Australian Bureau of Statistics. (2016). 2016 Census Quickstats: Moreland. Retrieved from https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/qu ickstat/LGA25250 Blaikie, N. (2007). Approaches to Social Inquiry - Advancing knowledge. Cambridge: Polity Press, pp. 1-12; 28-29.

Bleby, M. (December 26, 2018). Investors Sells Early: Fewer Tenants to Benefit From NRAS Rental Subsidy. The Australian Financial Review. Retrieved from https://www.afr.com/real-estate/investors-sell-early-fewer-tenants-to-benefit-fromnras-rental-subsidy-20181224-h19fv8 Dworkin, S. L. (2012). Sample Size Policy For Qualitative Studies Using In-Depth Interviews. Archives of Sexual Behaviour 41(6), 1319-1320. doi: 0.1007/s10508-0120016-6 Gill, P., Stewart, K., Treasure E., & Chadwick B. (2008). Methods of Data Collection: Interviews and Focus Groups. British Dental Journal 204(6), 291-295. doi: 10.1038/bdj.2008.192 Gurran, N., & Phibbs, P. (2015). Are Governments Really Interested in Fixing the Housing Problem? Policy Capture and Busy Work in Australia. Housing Studies 30(5), 711-729. doi: 10.1080/02673037.2015.1044948 Hunter, T. (September 4, 2013). I’d Rather Stick A Fork In My Eye Than Buy NRAS. Property Observer. Retrieved from https://www.propertyobserver.com.au/forwardplanning/investment-strategy/property-news-and-insights/25963-sept-5-flicker-3todd-hunter-.html Lawson, J., Berry, M., Milligan, V., & Yates, J. (2009). Facilitating Investment in Affordable Housing – Towards an Australian Model. Housing Finance International. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.601.3644&rep=rep1&type =pdf Moreland City Council. (2014?). Affordable Housing Strategy 2014-2018. Retrieved from https://www.moreland.vic.gov.au/globalassets/key-docs/policy-strategyplan/affordable-housing-strategy-2014-18.pdf

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Moreland City Council. (n.d.). Our City: Where is the City of Moreland?. Retrieved from https://www.moreland.vic.gov.au/about-us/our-city/location-of-moreland/ Portillo-Castro, H. (2017). Housing Affordability Measures: Budget Review 2017-2018.

Parliament of Australia. Retrieved from https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentar y_Library/pubs/rp/BudgetReview201718/HousingMeasures Raynor, K., Dosen, I., & Otter, C. (2017). Housing Affordability in Victoria. doi: 10.4225/50/5a36f5d41ba49 Thomas, M., & Hall, A. (n.d.). Housing Affordability in Australia. Parliament of Australia.

Retrieved from https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentar y_Library/pubs/BriefingBook45p/HousingAffordability Thomas, M. (n.d.). Housing and Homelessness. Parliament of Australia. Retrieved from https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentar y_Library/pubs/rp/BudgetReview201415/Housing Wallace, R. (April 22, 2014). Labor’s Cheap Housing Scheme on Shaky Foundations. The Australian. Retrieved from https://www.theaustralian.com.au/national-affairs/laborscheap-housing-scheme-on-shaky-foundations/newsstory/f2c03b77b346f105bab4d60562504cc7 Yates, J. (2013). Evaluating Social and Affordable Housing Reform in Australia: Lessons To Be Learned From History. International Journal of Housing Policy 13(2), 11-133. doi: 10.1080/14616718.2013.785717

FIGURES Cover Image: Google. (2019). [Satellite Image of Moreland]. Retrieved June 11, 2019 from https://www.google.com.au/maps/@37.7417801,144.9713081,12673m/data=!3m1!1e3?hl=en-GB&authuser=0 1: By author, (2019), Map of Moreland.

Data from: Victorian Government: Department of Environment, Land, Water and Planning.

(2019). WARD Boundaries 2017 (polygon) – Vicmap Admin [dataset]. Retrieved from https://discover.data.vic.gov.au/dataset/ward-boundaries-2017-polygon-vicmapadmin 2: By author, (2019), Research Process Diagram 01.

3: By author, (2019), Inductive-Deductive Approach, based on Blaikie (2007, p.8).

4: By author, (2019), Research Process Diagram 02.

5: By author, (2019), Interview Word Cloud.

6: By author, (2019), Research Process Diagram 03.

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SEMI-STRUCTURED INTERVIEW GUIDE & PROTOCOL PROTOCOL  CONSENT: Interviewees will be provided with a Consent Form if they wish to take part in the study, detailing whether they consent to be audio-recorded, their name identified and if they wish for a copy of the research. The interviewee will be made aware that if they wish the interview can discontinue at any time and they can withdraw their consent for their interview to be used in research. If the interviewee chooses to consent information will be gathered about their age, gender, occupation and household structure.  PRIVACY: Interviewees will maintain their anonymity through the use of pseudonyms. The research will only indicate a broad geographic area for the study and not use specific residential locations. Therefore, the interviewee will remain unidentifiable in the research.  CONFIDENTIALITY: As the purpose of this research is for a university subject the report will not be publicly distributed.  RESPECT: As this research explores financial aspects of housing, sensitivity to the interviewee ’s financial situation will be given. Questions will not ask for specific monetary amounts but rather focus on the implications of financial situations. The interviewee will be made aware that they maintain the right to choose to not answer some questions.

GUIDE METHODOLOGY:  INTERVIEWEE RECRUITMENT: Interviewees will be recruited through posting a notice on a NRAS building noticeboard, as well as local cafes. Further interviewees will be identified through a snowball approach by asking for recommendations of people for the study. A minimum of 25-30 interviews should be conducted to gain a representative sample, however more if necessary. If funding is provided by government interviewees may be notified through government NRAS registry.  CONSENT: Interviewees will be provided with a Plain Language Statement and the opportunity to ask questions about the research and the interview procedure. Interviewees will be asked to sign a consent form and the interview will be audio-recorded if consented by the interviewee. The interviewee will be made aware that they are able to refuse questions or terminate the interview at any time. The researcher may use their discretion if

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they feel the interviewee is uncomfortable with questions and subtly terminate the interview.  PARTICIPANT INFORMATION: If the interviewee consents information concerning their age, gender, occupation and household structure will gathered, to ensure a varied sample of interviewees.  SEMI-STRUCTURED INTERVIEW: The interview will be carried out according to the Interviewee Task as outlined below. It is preferable the interview is carried out in person.

The interview may take place at a public location such as a café, or at the interviewee’s residence if they provide consent, as outlined throughout the guide. Topics are divided into three sections past, present and future with details of sub-topics to guide questions. The interview is semi-structured allowing for the interviewee to raise experiences and opinions they believe are related and allow for iterative questions. Phrases such as ‘tell me about this’, ‘can you expand upon this aspect’ and ‘describe this process’ may allow open questions and descriptive answers.  DATA ANALYSIS: Interviews will be analysed using NVivo to create a coding system based on key words. Nodes will include financial, social, government and health. Sentiment will be coded into negative, positive and neutral based on emotive wording. This system will be used to analyse data then outline findings.

INTERVIEWEE TASKS: Application Process (past):  AWARENESS: application process, awareness of the scheme  CHALLENGES: what difficulties did they face with the application process, the barriers, were their resources they wanted to find but could not  SUPPORT: did they seek support, were they offered support, paperwork, was it easy to find if you were eligible Current Experiences (present):  COMMUNITY & SOCIAL CONNECTIONS: sense of community and social cohesion, integration with those not on the scheme, are you aware of your neighbours being on the scheme, any positive or negative social interactions  FINANCIAL SITUATION: any improvement in financial situation, or worse, is this less or more of an issue than before  HOUSING AMENITY: opinions on price, quality, value for money, location, design features

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Prospects (future):  CONSIDERATIONS: would you participate in the scheme again, or consider other government housing schemes, do you feel this scheme suited your needs  OPTIONS: future housing plans, what housing options are available, alternative accommodation, what are the deciding factors for choosing housing, are you seeking support in transitioning to other housing, who would you seek support from  PRIORITIES: how important is housing affordability compared to other issues, does this sway your political decisions, importance, do you think government is tackling housing affordability, is less or more needed  FEELINGS TOWARDS THEIR FUTURE: pessimism, optimism, hopeful towards future housing needs being met, improvements in situation, challenges in the future  ANY OTHER COMMENTS: the interviewee may make any other comments they feel are relevant

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DIRECT OBSERVATION GUIDE & PROTOCOL PROTOCOL  CONSENT: Direct Observation will only be conducted given the permission of the property owners, or if the researcher has the right to be in that space. If any objections are made to carrying out observations then this will be discontinued and data collected will be removed. Direct observation can occur simultaneously with the interview, if the interviewee consents.  PRIVACY: Photographs will generally not be used in this study to maintain the privacy and anonymity of individuals, as this is their place of residence. Only if consent is given through paperwork photographs will be taken. No reference will be made to specific locations and so addresses will not be recorded. Field notes will not include identifiable characteristics for specific people and locations rather broad overviews that are related to the study.  RESPECT: Respect will be given to residents through the research adopting sensitive behaviour and exercising an intuitive approach to what is appropriate in a situation. The rights of residents to maintain privacy is paramount and this will not be compromised.

GUIDE METHODOLOGY:  DATA COLLECTION: Site visits to NRAS buildings will take place, limited to accessible areas. This will be recorded in the form of field notes and the information collected will include observing behavioural interactions including evidence of behaviour traces.  PROCESS: If the quality of an interview would benefit from a walking interview and the interviewee consents the interview make take place within the premises of a NRAS property. The interviewee will retain the right to determine where the interview takes place and if they would like to directly engage in observation.  DATA ANALYSIS: As data will be collected in the form of field notes, this will later be analysed through highlighting key points relevant to the study and noting any preconceived ideas compared with direct observation experience.

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