Key points
- Cooperatives, consisting of members, own the right to a collection of homes, which are often in the same location.
- Without a landlord making a profit, rents only need to cover the costs of maintaining the property.
- Cooperative housing rent is more affordable than open market rent and can be set at a percentage of income.
This is because she is part of a co-operative housing scheme.
Cooperatives as a business model
A co-operative is a business model, but according to Linda Seaborn, senior policy advisor at the Business Council of Co-operatives and Mutuals, they operate differently to most of the Australian property market.
Some co-op homes are co-located, while others may be a collection of homes spread across a suburb or area. Source: Delivered / Cohousing Cooperative
“A housing cooperative is made up of the people who live in the homes, but actual ownership of the property can vary,” Seaborn said.
According to Western Sydney University, rental housing co-operatives make up just 0.03 percent of all housing in Australia and 3.43 percent of community housing in the country.
How much does cooperative renting cost?
Jenkins and her partner each pay 25 percent of their income as rent on their two-bedroom brick house, which she estimates works out to about $350 to $400 a week.
![A woman and baby watch chickens in a chicken coop.](https://images.sbs.com.au/50/05/29ab13594ab5ab517791a2928d17/gettyimages-1541852532.jpg?imwidth=1280)
Each housing co-op looks different, but many have shared facilities such as gardens and communal areas. Source: Getty / Houston Chronicle
Seaborn said that while rent may be calculated differently depending on the co-op, the housing alternative provided below-market rent.
“Over time, your housing costs become lower and lower, relative to market rates, and become increasingly affordable.”
“And often it is also a percentage of people’s income, so no more than 25 or 30 percent of their income.”
Active participation is required
They require active participation from their members, and even those who do not hold board positions are expected to be part of policy and decision-making by attending meetings and staying informed on cooperative matters.
![An overhead view of six people meeting around a table.](https://images.sbs.com.au/f8/50/cea179744209b4c557a137c66e41/20240121-102134.jpg?imwidth=1280)
People must be members to live in cooperative housing and participate in decision-making about the maintenance and operation of the housing. Source: Delivered / Co-housing cooperative
One of the most important principles of cooperative housing is democratic member control, so that everyone has an equal voice on matters.
Members may also be required to spend time maintaining shared facilities and housing.
Part of a community
“The village where I live is actually designed as a co-housing village and we have a communal house with a laundry and guest apartment and a big kitchen, and we eat together a few times a week,” she said.
![A blonde woman in a light pink sweater smiling at the camera.](https://images.sbs.com.au/0d/41/a3ae22844c68b22a4ceb53bba61b/linda-seaborn-2024.jpg?imwidth=1280)
Senior policy advisor Linda Seaborn from the Business Council of Co-operatives and Mutuals not only works in the co-operative housing sector, but also lives in a co-housing village. Source: Delivered
She has been a member of the co-op for 23 years and saw it as an affordable and safe housing option.
She is the oldest person in her cooperative and the youngest is six years old.
![An older woman and man.](https://images.sbs.com.au/c4/8f/e70fee6f4f61b0d2e26ca95f1de8/yvonne-and-partner.jpg?imwidth=1280)
Yvonne Jenkins and her partner each pay 25 percent of their income as rent for their home. Source: Delivered
A report published earlier this year by Western Sydney University found that co-operative housing provides affordable housing at a similar cost to other forms of community housing, as well as providing other social benefits.
Benefits of co-operative living included: a sense of security, a positive impact on mental health, a strong sense of community and well-being.
“I just think it’s a very supportive way for people to live,” she said.
A ‘nest instead of a nest egg’
“What our housing system is generating right now shows us that there is something really wrong with it. I think it falls into the category of human rights violations.”
![About 10 people gathered at the entrance of a multi-story apartment building.](https://images.sbs.com.au/0b/1e/7fc6bb134fab8e5b09c6729ef3ee/emoh-ruo-erskinville.jpeg?imwidth=1280)
Housing cooperatives can be found all over Australia. This is located in Erskinville, NSW. Source: Delivered / Co-housing cooperative
Treasurer Jim Chalmers has ruled out changes to real estate-related tax breaks. and the opposition has said the coalition will not support changes to these measures.
SBS asked Julie Collins, Minister for Housing and Homelessness, about the possibilities for additional co-operative housing in Australia.
“This includes the $10 billion Housing Australia Future Fund, the largest investment in social and affordable housing in more than a decade, and the $2 billion Social Housing Accelerator.”