In a recent report, the Business Council of Co-operatives and Mutuals (BCCM) underscores the transformative potential of cooperative housing in tackling Australia’s rental affordability crisis. Drawing from a study tour across Europe, BCCM reveals that cooperative housing models—integral to cities like Copenhagen, Vienna, and Zurich—could offer a sustainable solution to Australia’s housing challenges. These cities boast cooperative housing shares between 18-21% of total stock, compared to a mere 0.05% in Australia.

Melina Morrison, CEO of BCCM, highlighted the need for new strategies beyond traditional private rental models, emphasizing that cooperative housing could become a key affordable housing class with the right policy support. The report recommends several initiatives to foster coop housing growth, including setting aside a portion of “Build to Rent” projects for rental coops, establishing a 10% target of community housing stock, and creating a dedicated credit line within the Housing Affordability Future Fund (HAFF) for coops.

The report also calls for government policies to ensure coop housing is developed by non-profit entities, offering tenants affordable, secure, and community-managed homes. Liz Thomas, Managing Director of Common Equity Housing Ltd (CEHL), noted that coop housing empowers residents by offering affordable rents and a say in housing management, enhancing both housing security and community cohesion.

Funding remains a major barrier in Australia. European models rely on diverse funding sources, such as Austria’s tax-supported system and Denmark’s perpetual affordable housing funds. The report urges Australia to adopt similar models, including modifying HAFF guidelines to support cooperative developments and easing financial services regulations to enable non-bank funding for coops and community land trusts.

As Australia grapples with its housing supply issues, BCCM’s report showcases a proven path forward: cooperative housing, already flourishing in Europe, could provide Australians with affordable, stable housing while fostering engaged, empowered communities. You can read the full report on BCCM’s website.