As property prices skyrocket across Australia, an alternative housing option is growing in popularity as a potential solution to tackling the national housing crisis.
When Tara Morelos was a university student in 1996 she paid $50 per week in rent for a three-bedroom house in Sydney’s inner west.
Fast forward almost four decades later, and Morelos leases a four-bedder in Petersham for as little as $210 per week, well under the current market value.
Morelos lives in a co-operative, a housing model that prioritises a sense of community and active participation while providing affordable and secure housing.
Her co-op, Extended Family, is one of 33 co-operatives that operate under the umbrella of Common Equity – a non-profit housing provider and peak body for rental housing co-ops in NSW.
Common Equity operates several co-operatives across the state including Sedgewick Co-op, Dunroamin Co-op, and the newly established Lac Viet Co-op, a 13-unit co-operative targeted at senior members of the Vietnamese community in Cabramatta, in Sydney’s west.
For Morelos, her housing accommodates to single women and single mothers, something that appealed to her as a young mum in her 20s balancing work and study.
“For me it was about more than just housing for me it was also about community and having that support,” she explained to 9news.com.au.
“Particularly as a young woman and single parent back in the day, having others that were on tap to help and had the same situation, that was invaluable.”
Morelos lives in a regular four-bedroom house on a double block, but it’s subdivided into flats which she shares with two other women.
Her rent is also tied to 25 per cent of her income with a ceiling of local market value.
Because of this she has been able to complete a masters degree and pursue a successful career in the Arts.
“The idea is if I lose my job tomorrow, then I can get a rent reduction,” Morelos explained.
“If I get a fabulously well-paying job, then I notify them and my rent goes up.”
In her time Morelos has moved to several different co-operatives, and while each household is unique in its diversity they all generally share the same principles.
“Different co-ops will do that differently, rotate positions or delegate things – there’s no right way,” she said.
A co-op also requires active participation and democratic member control to operate successfully.
Morelos herself has served as Treasurer and Chair, providing her with skills that she says have helped her gain employment.
“Basically the minimum participation is pay your rent, that’s a minimum social responsibility, and to attend monthly meetings,” she said.
The only Aussie capital where homes average under $500,000
“People have positions, some people will not participate, but from my side as long as people pay their rent that’s okay with me.”
She said sometimes co-operatives can be complex when navigating the emotional states and well-being of other members but she believes there’s growing demand for them.
“I think there’s ongoing interest, and possible intensifying interest in them, because they are an affordable housing option,” she said.
“But also people are interested in those housing models that have a greater sense of community, I think that’s attractive to some people.”
Co-operatives are common in other countries like Denmark, Sweden and Canada but they only make up a small proportion of community housing in Australia at around 3 per cent.
Common Equity NSW Chief Executive Nick Sabel said the co-operative model has the opportunity for growth and potential to help tackle the housing crisis.
“This form is seemingly resonating with more people as they try to look for ways they can share costs, share living arrangements to reduce costs, get a greater sense of community and reduce isolation,” he said
He said the model was “one part of a multi-faceted solution that we need in Australia”.
“We’re continuing to work and advocate for this model and hopefully grow it into the future,” he said.
City of Sydney council already looking to support a range of different community housing projects in NSW.
The council recently sold seven unused terraces to Common Equity to establish the first co-operative housing of its kind that is solely dedicated to transgender women.
City of Sydney’s Housing Chair, Councillor Sylvie Ellsmore said there was increased interest in co-ops but because they are not common, it’s difficult to convince funding bodies that they should provide that form of affordable housing.
“The main thing people tell me though a major barrier is the cost of land,” she said.
“I get a lot of women, particularly older women… who want to live collectively and support each other and are very keen.
“But they need the support from government or big institutions so they can have a sustainable model.”
