Affordable housing is housing that is affordable to people on a range of incomes. This could include people working as chef's, cleaners, teachers, cafe workers and nurses.

When households have very low, low or moderate incomes and experience housing stress they are considered to be in need of affordable housing. Households with higher incomes are excluded because high housing costs do not typically impact their ability to pay for necessities.

Housing is considered affordable if the costs of that housing do not place the household in housing stress. Specifically, if the housing costs are below 30% of gross household income for households with very low, low and moderate incomes.

Social housing is a subset of affordable housing. Homes Victoria defines social housing as “an umbrella term that includes both public housing and community housing. It generally indicates housing that involves some degree of subsidy.

Public housing is housing owned and managed by Homes Victoria.

Community housing is housing owned or managed by community housing providers”.

Housing stress is where the housing costs are above 30% of gross household income for the household for households with very low, low and moderate incomes.

Extreme housing stress is where housing costs are over 50% of gross household income.

Rising house prices and rents, and limited investment in social and affordable housing, have led to an increase in the number of households experiencing housing stress in the community.

Affordable housing brings benefits not only to the people who live in the housing, but also for the economic, social and cultural environment of the wider community.

Providing more affordable housing helps local communities function better. It ensures businesses can get staff to sell groceries, cook and serve food at cafes and restaurants and work in customer service roles. It also helps health and education services attract staff such as cleaners, teachers, nurses and administration staff.

Affordable housing enables workers to live closer to their workplace, reducing traffic congestion for everyone.