Social Infrastructure

Victorian Social and Affordable Housing

Australia has an inadequate supply of stable, appropriate, and affordable accommodation, particularly for those on low incomes.

Not having secure and appropriate accommodation is often a barrier to educational attainment, stable work, strong health and wellbeing, and family and community relationships.

In the past few decades, Australia’s housing landscape has changed significantly, worsening this situation:

  • house prices are rising at a faster rate than incomes;1
  • the cost of renting has risen at triple the rate of wages in most major cities;2 and
  • the proportion of total stock designated as social housing stock has fallen to less than 45%.3

Victoria, in particular, is falling behind on social housing – with social housing homes as a proportion of all households now at 3.1%, well below the national average of 4.5%.4
To simply maintain the current level of social housing at 3.1%, 2,400 new public and community housing dwellings would need to be built every year over the next 25 years.

Despite strong demand by investors, private sector investments into social housing have been particularly challenging because rents are capped at below market based on tenants’ income.

We believe our first investment into this sector in 2021 pioneered a new model, which leverages private capital to generate new social and affordable housing stock.

Sources:
1. The Lost Decade: How low wage growth stopped young Australians buying a home – Per Capita. (2025). Per Capita. https://percapita.org.au/our_work/the-lost-decade/, p.12
2. Staszewska, E. (2024). The charts that show why owning a house is out of reach for so many Australians. [online] SBS News. Available at: https://www.sbs.com.au/news/article/the-charts-that-show-why-owning-a-house-is-out-of-reach-for-so-many-australians/mxs9vjw6i.
3. Australia’s welfare 2023: data insights, Chpt. 4 Homelessness and housing affordability in Australia, AUS 189. p. 104
4. Growing Social Housing | VCOSS. (2025). Growing Social Housing. [online] Available at: https://vcoss.org.au/growingsocialhousing/.

Social and affordable housing investment in Airport West, VIC
Social and affordable housing investment in Airport West, VIC

How do we address this challenge?

CIM first started financing the acquisition of social and affordable housing in July 2021 under a unique partnership with the Victorian Government and community housing association, HousingFirst.

Under this partnership, CIM has financed the acquisition of 260 dwellings in 18 buildings around Melbourne, providing housing to over 400 people on the social and affordable housing register.

Properties are located in high amenity suburbs close to services and economic hubs. Apartments are dispersed within large apartment buildings, with no more than 20% of each building being designated as social and affordable housing.

Social and affordable housing investment in Footscray, VIC
Social and affordable housing investment in Footscray, VIC

Impact achieved to date

To date, CIM has financed a total of 260 new social and affordable apartments across 18 buildings in Victoria.

To date, all 260 contracted properties have settled.

Impact Partner Profile – Housing First

HousingFirst is an award-winning, regulated, not-for-profit organisation providing social and affordable housing to over 2500 people across Melbourne. It is recognised as one of Victoria’s fastest growing community housing organisations, enjoying excellent working relationships with stakeholders, including the local, state and federal governments, developers, financiers, regulators and industry organisations.

HousingFirst has over 35 years of financial, property development, tenancy, asset management and community development experience to create some of Melbourne’s most attractive and liveable homes.

View our other case studies