Housing
Co-operative housing providers…
- Are affordable housing providers
- Provide decent homes for key workers and first time buyers
- Provide a model of housing that pools people’s resources and builds strong communities
- Put tenants in control of their homes
Are affordable housing providers
In Australia and overseas, housing co-operatives have been effective financial managers of housing for decades because tenants have a sense of ownership and control in their management.
Provide decent homes for key workers and first-time buyers
Develop affordable housing to deliver new dwellings for key workers and other moderate income earners.
Provide a model of housing that pools people’s resources and builds strong communities
The long-term involvement of tenants with their homes and their community is beneficial to people providing a sense of place and commitment. In addition, the skills developed in operating their own enterprise assists with confidence building that often leads to employment and a more varied income stream.
Put tenants in control of their homes
In addition to social benefits, housing co-operatives can deliver services effectively and efficiently while increasing consumer choice and control.
The co-operative housing model is highly diverse, but is first and foremost an ownership structure which can complement varying degrees of resident self-management, co-housing, co-design etc.
For further information about housing co-operatives, please contact Linda Seaborn.
The BCCM is the Australian representative to Cooperative Housing International.
Many housing co-operatives in Australia are represented by the Australian Co-operative Housing Alliance, which is affiliated with the BCCM.
Co-op housing in the news
Housing examples
BCCM co-op housing news
Housing resources
Co-op housing FAQs
Cohousing refers to a specific architectural design where individual homes are clustered together with shared common facilities and spaces to encourage social interaction and a sense of community. The focus is on the physical design and layout of the housing development.
On the other hand, a housing co-operative is a business model where the property is managed co-operatively by the residents themselves. Depending on the co-op structure, the property may be owned by a co-op housing provider or it might be collectively owned by the residents. Either way, the key aspect is democratic control by the residents.
While some cohousing communities may be structured as housing co-ops, not all are. Similarly, housing co-op buildings usually don’t follow the cohousing design principles.
Social housing is an umbrella term that encompasses public housing provided by the government and community housing delivered by non-profit organisations like housing co-operatives and associations. The common goal is to provide affordable housing options for individuals and families.
Public housing is a specific type of social housing where the properties are owned and managed by government authorities. In contrast, rental housing co-operatives are democratically controlled by tenants and part of the community housing sector.
No, co-operative housing models are not limited to rental arrangements. The co-operative business model can be applied to various forms of housing tenure, including:
- Rental co-ops: Members rent their homes from the co-operative, which owns or leases the properties.
- Limited equity co-ops: Members purchase shares in the co-operative, giving them the right to occupy a unit. When they leave, they can sell their shares back to the co-op at a price determined by a formula, allowing for some equity gain while maintaining affordability.
- Market equity co-ops: Similar to traditional homeownership, members fully own their units and can sell them at market rates. However, the co-operative still manages and maintains the overall property.
While co-operative housing is relatively small in Australia compared to some other countries, it has a significant presence internationally, particularly in parts of Europe.
In Denmark, for example, one-fifth of the nation’s population (around 1.2 million people) resides in housing co-operatives. Similarly, in Sweden, housing co-ops account for 22 per cent of the total housing stock, and in Norway, the figure is 15 per cent nationwide.
These countries have well-established, government-supported co-operative housing systems that have developed and grown over time. If Australia had equivalent rates of co-op housing, it would translate to between 1.6 million and 2.4 million households living in co-op housing.
Currently, there are over 5,000 households living in co-operative housing in Australia, with more than half of these located in Victoria, where the state government has been supportive of the co-op housing model. Nationally, co-operative housing makes up only 1 per cent of the social housing stock, but in Victoria, that figure is higher at 3.5 per cent.
Yes, co-operative housing can certainly make a meaningful difference in addressing the need for affordable housing in Australia. Co-op housing models offer several advantages:
- Cost reduction: Since co-ops are not driven by profit motives, they can provide housing at lower costs by eliminating developer profit margins. This makes housing more affordable for members.
- Market influence: The growth of lower-cost co-op housing models can drive competition and encourage other housing providers to reduce costs, thereby improving affordability across the entire housing market.
- Long-term affordability: In limited equity co-ops, the resale value of shares is determined by a formula rather than market rates. This helps maintain affordability over time as housing costs rise more slowly than market rates.
- Community benefits: Co-op housing fosters a sense of community, generates social capital and creates opportunities for individual growth through member participation and capacity building.
Research in Austria has shown that raising the proportion of this type of limited profit housing helps to keep rent more affordable across the whole of the housing market.
No, co-operative housing is not limited to major cities. While urban areas may have a higher concentration of co-ops due to population density, there are also a number of rural co-operative housing communities across Australia.
Co-op housing can be a viable option for both urban and rural areas, as the co-operative model is adaptable to different contexts and community needs. The key principles of democratic control and member participation can be applied regardless of location.
Whether a vacancy arises due to a new build or a tenant departing an established co-op, the process of selecting new members for a housing co-operative typically involves a combination of eligibility criteria and co-op-specific procedures.
Some co-ops may have eligibility requirements related to their purpose or funding sources. For example, income and asset limits may be in place for co-ops receiving government funding for affordable housing. Other co-ops may be specifically designed for certain groups, such as students, older adults, people from a particular cultural background, artists or people with disabilities.
From the pool of eligible applicants, co-ops will have their own procedures for selecting new members. This could be based on factors like the length of time on the waiting list, the ability to actively participate in the co-op’s operations or a trial period to assess compatibility.
The key principle is that the co-op members collectively decide on the selection criteria and processes, ensuring that new members align with the co-op’s purpose and can contribute to its successful operation.
Children can live with their family in a co-op unless there are eligibility requirements that specifically preclude them (such as an over 55s co-op). Pets may be allowed, depending on the rules of the co-op. Whether there are inspections will depend on the agreement made between the members about how they manage the property.
You need several people to work together to form a housing co-operative. If you hope to secure government funding, you would need to partner with a registered community housing organisation to be eligible (see the ACHA for more information). If the co-op members can offer equity, you may want to talk to a developer who may have capacity to work with you, such as one of the common equity companies (see ACHA) or Middle Ground, Nightingale, Property Collectives or Assemble.