09 June 2026
Co‑operative housing is emerging as a credible, scalable response to Australia’s housing affordability challenge, with renewed attention from policymakers and media as pressures on the “missing middle” workforce intensify.
On The Radio National Hour on 4 June 2026, hosted by Fran Kelly, BCCM CEO Melina Morrison joined Dr Sidsel Grimstad from Griffith University to examine how co‑operative housing operates in practice and why the model is gaining traction in the current policy environment.
The discussion positioned co‑operative housing not as a niche or experimental concept, but as an established business model already operating in Australia and at scale internationally.
A formal, member‑owned housing model
Melina Morrison described co‑operative housing as a structured enterprise model in which housing is organised as a co‑operative business. Residents are not simply tenants. They are members with responsibilities and a direct role in managing their housing.
This model is underpinned by collective ownership or management arrangements, with governance structures that enable residents to participate in decision‑making.
Importantly, co‑operative housing in Australia operates within a broader institutional framework. Individual co‑operatives are supported by umbrella organisations that provide shared services across governance, administration and development.
This systematised approach means the model is not dependent on isolated projects. It can be scaled and replicated with the right policy settings and institutional support.
Victoria demonstrates how policy drives scale
A key focus of the discussion was the development of co‑operative housing in Victoria, which has the largest concentration of rental housing co‑operatives in Australia.
This growth has been shaped by policy decisions made decades ago. Government support for head leasing arrangements to community housing providers enabled organisations to build balance sheets and use them to develop additional housing.
Victoria’s experience illustrates a clear policy pathway: long‑term settings paired with enabling institutions can drive sector growth.
Financing a non‑profit development model
The interview also addressed a central question for policymakers: how co‑operative housing is financed.
Development is typically led by non‑profit housing providers that use a mix of internal reserves, capital, bank lending and other financing mechanisms. While these organisations resemble traditional developers in structure, they operate with a different purpose.
Rather than maximising profit, the focus is on minimising margins and reinvesting in additional housing supply. This enables the delivery of high‑quality housing at lower cost while maintaining long‑term affordability.
Rent is generally set at 25 per cent of household income, capped at market rates. This ensures access for low‑ to moderate‑income households, including key workers, people working part time and students.
Addressing the “missing middle”
The program framed co‑operative housing within Australia’s housing affordability challenge, particularly the growing cohort of workers who are unable to access home ownership and are not well served by existing rental models.
This “missing middle” includes essential workers such as Nurses, Teachers and Police who increasingly struggle to live near their workplaces.
Co‑operative housing offers a model that can deliver stability, affordability and proximity to work. By combining non‑profit development with member participation, it provides an alternative to both private rental and traditional social housing.
Demand for this model is already significant, with waiting lists in many areas extending beyond 10 years.
A small but growing part of the system
Despite its strengths, co‑operative housing remains a relatively small part of Australia’s housing system.
There are approximately 8,000 co‑operative housing properties nationally, representing less than 1 per cent of the community housing market. Sector bodies suggest the model has potential to grow significantly over time.
Victoria provides a clear example of this potential. The Common Equity Housing Limited (CEHL) network includes more than 95 co‑operatives managing over 2,000 properties.
International evidence of scale
Dr Sidsel Grimstad provided an international perspective, drawing on experience from countries where co‑operative housing is well established.
In Denmark, around one in five people live in housing co‑operatives. Sweden, Norway and cities such as Zurich and Vienna also have significant co‑operative housing sectors supported by long‑term policy frameworks.
These examples reinforce that co‑operative housing is not a new or untested model. It is a proven approach that can deliver large‑scale housing outcomes when supported by consistent policy settings.
If Australia were to reach similar levels of adoption, this would translate to between 1.6 million and 2.4 million households living in co‑operative housing.
A practical pathway for policy reform
Taken together, the interview positions co‑operative housing as a practical policy solution rather than a theoretical alternative.
The model is already operating in Australia, with established governance structures, financing pathways and development mechanisms.
It directly addresses current policy challenges, including housing affordability, workforce housing and long‑term rental stability.
Victoria’s experience shows that scale follows policy. With the right settings, co‑operative housing can become a more substantial part of Australia’s housing system.
A growing role in Australia’s housing future
As governments continue to look for solutions to the housing crisis, co‑operative housing is being reconsidered as part of a broader mix of housing options.
The national conversation is shifting. What was once dismissed is now being examined more closely by policymakers, media and the sector.
The discussion highlights a clear opportunity: co‑operative housing is already delivering outcomes. The focus now is how to enable its growth.
Find out more:
- Listen to the full interview: Long dismissed as a hippie ideal, interest in cooperative housing is growing – ABC listen
- How a low‑income renter found secure, affordable rental housing – ABC News
- Australia needs a third pillar in housing
- Co‑operative housing recognised as a distinct tenure in national housing analysis
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