Social versus affordable housing – an explainer

What is the difference between ‘social’ and ‘affordable’ housing?

Many people use these terms interchangeably – but they are two different things.

Social housing refers to government-subsidised short- and long-term rentals. Two types of social housing are ‘public housing’ which is owned by the government and ‘community housing’ which is managed and sometimes owned by not-for-profit organisations. Social housing rents are calculated based on income – typically 30 percent of a renter’s income – and target people on lower incomes or benefits.

On the other hand, affordable housing refers to housing options which are available at a rent or price lower than the local market rate. Affordable housing is considered to be accessible for those on low or moderate incomes. Rents are based on market rates – typically 25 percent less than what the market is charging for similar housing.

Ten years ago, BaptistCare launched a subsidiary, BaptistCare Affordable Housing (BAH), providing well-located and well-built social housing for people on lower incomes who are at risk of, or are experiencing, homelessness.

To read more about our affordable housing projects, click the link below:

https://www.baptcare.org.au/services/housing/affordable-housing