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.

 

cooperative housing international logo

The BCCM is the Australian representative to Cooperative Housing International.

 

ACHA

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

28 September 2024

Co-ops can and should be a serious part of Australia’s housing solution

Australasian social and affordable housing consultant Donald Proctor went on a BCCM study tour of European housing co-ops earlier in 2024, and the AHI has shared his discoveries.
The Project
30 July 2024

Co-op housing on The Project

The Project covered co-op housing last night showing the growing interest in affordable housing models that offer an affordable and desirable alternative to private renting.
29 July 2024

Letter to the SMH: Co-op housing

"Earlier this year, I went on a study tour of European housing co-operative sectors, which provides first-class, affordable, secure housing."
People have to be members to live in co-operative housing and take part in making decisions around the maintenance and operation of the dwellings. Source: Co-housing Cooperative
25 June 2024

Yvonne doesn’t own her home. This housing alternative means she never worries about rent

SBS News: The co-op model sees housing as "a nest, rather than a nest egg", with members working together as a community.
Melina Morrison
17 June 2024

Gray pays $115 a week in rent. But there’s a catch

BCCM CEO Melina Morrison in SMH article which explores the policy barriers for co-operative housing to play a larger role in addressing housing affordability in NSW.
1 June 2024

Unlocking the ‘Missing Middle’: Lessons from Europe’s housing co-ops

In April 2024, Europe played host to a delegation from Australia’s BCCM, taking a fact-finding tour ​​of co-operative housing models in Copenhagen, Vienna and Zurich. 
15 May 2024

Co-operative sector welcomes Budget measures to boost social housing

Australia’s $40 billion co-operatives and mutuals sector has welcomed the Federal Government’s Budget initiatives to help ease cost of living pressures and address the shortage of affordable...
4 April 2024

Podcast: Benefits of Housing Co-ops with Linda Seaborn

Sage Godrei engages in a compelling conversation with Linda Seaborn, Senior Policy Advisor at the BCCM, shedding light on the advantages of the housing co-op model.
Australian suburbia, Photo by Tom Rumble on Unsplash
27 March 2024

The benefits and challenges of co-operative housing

Researchers found that some co-operative housing tenants enjoyed benefits beyond affordable accommodation, including increased social connections and the acquisition of new skills.

Housing examples

Co-operation Housing

Co-operation Housing

Umbrella organisation for housing co-operatives in WA, representing, supporting, advocating for and growing the WA co-op housing sector.
Established Year: 2010
Industry: Housing

Cohousing Australia

Advocates for and supports the creation and delivery of cohousing, particularly in Australian sub/urban area.
Established Year: 2006
Type: Industry peak
Industry: Housing
Common Equity Housing Limited (CEHL) logo

Common Equity Housing Limited (CEHL)

CEHL is Victoria's largest Housing Association and is both a provider and developer of affordable housing. CEHL empowers people with co-operative housing models to build strong communities.
Established Year: 1985
Industry: Housing
Common Equity Housing SA

Common Equity Housing SA

Provides support services to housing co-ops run by members, resulting in strong communities, social networks and better outcomes for members.
Established Year: 2012
Industry: Housing
Common Equity NSW Logo

Common Equity NSW

Common Equity provides overall asset management of properties for housing co-operatives. It also provides training and resourcing for the co-operatives, negotiating and servicing of borrowings for growth, and is responsible for overall program administration and monitoring.
Established Year: 1985
Industry: Housing
HOPE Housing Fund Management Ltd

HOPE Housing Fund Management

Not-for-profit fund manager on a mission to support essential workers purchase homes closer to their work.
Established Year: 2022
Supporting Independent Living Co-operative Logo

Supporting Independent Living Co-operative

Assists families to connect and create sustainable homes and life experiences for their family member living with disability.
Established Year: 2016
Sustainable Housing for Artists and Creatives Co-operative (SHACC)

Sustainable Housing for Artists & Creatives

Secures permanent affordable housing and studio workspaces for professional artists and creatives in the City of Fremantle area.
United Housing Co-operative

United Housing Co-operative

Not-for-profit community housing provider, operating in the inner-western suburbs of Melbourne
Established Year: 1985
Industry: Housing

Housing submissions

Response to the Housing Australia Investment Mandate Amendments

The BCCM calls for a sympathetic policy environment that recognises the unique requirement for tenant-member contribution in housing co-operatives and the value and benefits created from this.
Jurisdiction: Australian Government
Committee: Treasury
Submission Date: 08 Nov 2023

Creating a National Housing and Homelessness Plan

The BCCM led a collaborative submission by members, advocating for co-operative housing across the spectrum of affordable rental housing and affordable homeownership.
Jurisdiction: Australian Government
Committee: Department of Social Services
Submission Date: 20 Oct 2023

Rental and housing affordability crisis in Victoria

The BCCM and ACHA recommend that 10 per cent of social housing in Victoria be co-operative housing and that rental housing co-operatives be a preferred model for investment in rental.
Jurisdiction: Victoria
Committee: Victorian Legislative Council Legal and Social Issues Committee
Submission Date: 04 Jul 2023

Housing resources

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Action on housing

The BCCM’s National Affordable Housing Strategy.
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Housing Affordability and Credit Unions: Lessons from Canada

Webinar on the strategies and partnership opportunities Canadian credit unions are utilising to gain insights they can share with the entire global credit union movement.
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ACHA Blueprint

Co-operative housing – the missing piece of Australia’s housing puzzle. Australian Co-operative Housing Alliance Blueprint.
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What Australia can learn from European affordable co-operative rental housing models

A report on findings from the BCCM 2024 European Co-op Housing study tour.
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Could co-operative housing solve the current crisis

More than 8,000 people live in co-operative housing in Australia. This mode of housing was designed to be an affordable, secure way to rent, and collectively own, a home.
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Australia’s housing co-operative sector

There are varying statistics provided about the amount of co-operative housing in Australia and the BCCM maintains the most comprehensive data on the sector’s size and scope.
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Community Land Co-operative Template Rules and Guide

Guidance on how to establish a ‘Community Land Trust’ using a co-operative legal structure, addressing a key question of how the core objectives of CLTs and co-operatives can be combined.
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Cohousing models to address affordable housing in Australia and Tasmania

Research paper on cohousing models to address affordable housing in Australia and Tasmania, by Monica Antel.
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Housing the 'missing middle'

Housing the ‘missing middle’ – Limited Equity Housing Co-operatives can deliver advantages over private rental for those who cannot afford home ownership.
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Housing Co-operatives in Australia

Overview of and discussion about housing co-operatives in Australia and the implications for the present debates about affordable housing in Australia.
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BCCM’s Housing Blueprint

The BCCM is calling on all political parties to work with the sector to develop equity and share equity models of co-operatives housing that can give more Australians access to secure and affordable...
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Co-operative housing a preferred option for low-income older Australians

Australian Housing and Urban Research Institute (AHURI) explores housing preferences of older, low-income households and identifies optimal models to meet their needs.
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Housing Cooperatives and the Cooperative Identity

A housing cooperative is a legal association formed for the purpose of providing housing to its members on a continuing basis.
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The Nordic Edge: What Australia can learn from Nordic countries

A webinar exploring how Nordic nations’ consensual approach can inspire progress in Australia while enhancing prosperity and community wellbeing.

Co-op housing FAQs

What is a housing co-op? How does it differ from other forms of housing ownership?

A housing co-op sits between renting and ownership. Residents have the affordability of renting and the security and agency of owning. Housing tenure types in Australia:

National Housing Supply and Affordability Council, State of the Housing System 2024.

Source: National Housing Supply and Affordability Council, State of the Housing System 2024.

A housing co-operative is membership-based, with each member in the housing co-operative granted the right to occupy a housing unit. Housing co-ops come in many forms. Some are townhouses and small buildings with just a handful of units, others are large apartment-style buildings with hundreds of units. Some co-ops are rental whereas others are member-owned, also known as equity co-ops. The fact that there are so many variants is an indication of how co-operative housing is an adaptable and flexible model that can work in many different circumstances.

The need for affordable housing in Australia is so huge. Can co-op housing really make a difference?

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.

Not-for-profit housing co-operatives create permanently affordable housing. Studies of European housing co-operatives which have existed for decades, if not centuries, shows that over time, operating the housing ‘at cost’ means the gap between co-ops and markets grows, meaning the longer you have co-ops as a part of your housing system, the better they are at providing affordable housing.

Investing in not-for-profit co-op housing through things like low-cost loans provides a great social return through stabilising housing. Unlike subsidies for market housing which assist house prices to grow, co-op housing, which is run at-cost, helps to stablise prices. Co-ops are an essential part of the road out of the housing crisis to building a better housing system in Australia. Co-ops treat housing like a nest, not a nest egg.

How much demand is there to live in housing co-ops?

The Victorian Housing Register records what type of housing applicants would like to live in. Demand in 2023 rose to 1,200 households per year that wanted to live in co-op housing. This was double the demand of 600 households per year in 2020. Demand in Tasmania has similarly doubled. These are the only places the BCCM currently has data for.

Is co-op housing just for major cities?

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.

Are co-op housing models only for people who want to rent?

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.
Are co-ops just for low-income households? Or could they work for people on middle incomes, such as teachers, nurses, police?

In many countries housing co-ops are used to create long term affordable housing especially for essential workers. So while they can work very well for people on low incomes, they certainly have a broader range. Much of the affordable housing across New York is co-operatives specifically for the middle-income workforce that would otherwise be locked out of housing affordability.

I've never heard of co-op housing in Australia. Is it big overseas?

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. In Zurich it is 25 per cent and in Vienna 21 per cent.

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.

What is the difference between social housing and co-op housing? What about public housing?

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.

What is the difference between co-op housing and cohousing?

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.

Who decides who gets to live in a housing co-op?

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.

Can children live in a co-op? What about pets? Are there inspections, such as with rented properties?

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.

What advantages does the co-op form have over other forms of property ownership?

Equity co-ops where residents own a financial share in the co-op have a number of advantages. Firstly residents can share costs and have an economy of scale to make them more affordable. They have financial resilience, because it is multiple properties, and incomes, in the one co-op business. They can break down social isolation and provide a lot of health and wellbeing benefits. They can partner with government and through access to support for affordable housing they can adjust their model to be accessible to more people, like young families, essential workers, older women.

What disadvantages does the co-op form have over other forms of property ownership?

Co-ops require active involvement from members in running the co-op business and not everyone wants to do that. It requires an ability to negotiate and resolve potential conflict. People develop those skills in a co-op, but if someone is not interested, then they are not well suited for a co-op.

Why are there so few housing co-ops in Australia?

The dedicated funding stream for starting co-ops ended in the mid-1990s and growth has been slow since then. As an ownership model, co-ops respond to need. Australian wages kept pace with house prices until about 2000 so there was less need. Now that house prices have risen at a much faster rate, we don’t have an alternative ownership system in place to help bridge that gap. The BCCM study tour to Europe in April this year looked at those alternative systems that have developed in countries that historically had less home ownership affordability than Australia.

House prices and wages (full time weekly earnings, index: 1970 = 100) Source: Business Insider in Kohler (2023) ‘The Great Divide: Australia’s Housing Mess and How to Fix It’ Quarterly Essay 92

House prices and wages (full time weekly earnings, index: 1970 = 100) Source: Business Insider in Kohler (2023) ‘The Great Divide: Australia’s Housing Mess and How to Fix It’ Quarterly Essay 92

Can I form a housing co-op myself?

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 Australian Co-operative Housing Alliance (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.

What policy changes would encourage more housing co-ops?

Places that have high proportions of co-operative housing have had governments who make a deliberate decision to encourage their growth. For example, the Australian government did that in the 1980s and that is where most of the current housing co-operatives come from (this was led by Sydney architect Col James). Places like Austria and Denmark where there are a lot of co-ops, have created financing structures that result in favourable loans to not-for-profit housing co-operatives. In Australia we need two things – a return to a dedicated stream of funding for housing co-operatives for lower income households; and long-term low interest loans to not-for-profit housing co-ops providing housing to middle income households.