Why recognising Social and Affordable Housing as its own asset class is key to unlocking investment and easing Australia’s housing crisis

Viewing Social and Affordable Housing (SAH) through the same valuation, pricing and planning lens as the open residential market is actively discouraging institutional investment and constraining supply, a new CBRE analysis shows.

The Unlocking Social and Affordable Housing paper highlights growing institutional investor appetite for SAH, particularly from impact‑focused and ESG‑mandated capital. However, inconsistent policy settings, valuation uncertainty and fragmented funding structures limit participation.

Steph Harper, CBRE’s National Director, Living Sectors, Valuations & Advisory Services, is one of the paper’s authors and says SAH is integral to the housing market, not an exception to it.

“The housing challenge in Australia is not a lack of intent, it’s a lack of alignment. When Social and Affordable Housing is understood, priced and valued on its own terms, delivery becomes achievable without disproportionate reliance on subsidy. The task ahead is to embed this thinking into policy, planning and practice,” Ms Harper said.

“There is an opportunity for governments, working alongside industry and Community Housing Providers, to formally recognise SAH‑specific values within planning and land pricing frameworks, creating greater certainty and supporting sustainable delivery,” Ms Harper added.

The paper outlines the benefits of viewing SAH as an emerging asset class closely aligned, but distinct from, Living Sectors assets like Build to Rent, Purpose Built Student Accommodation (PBSA), and Co-Living while also exhibiting infrastructure-like features to drive investment.

“If we continue to assess Social and Affordable Housing through the lens of the open residential market, we will continue to under‑deliver. Recognising Social and Affordable Housing as a separate asset class allows these assets to be priced correctly, feasibility to be aligned with intended use, and supply to scale. The call to action is simple: apply fit‑for‑purpose feasibility frameworks, change the value framework, and the market will respond,” Ms Harper added.