A city cannot function if its essential workers—nurses, teachers, police officers—cannot afford to live in it. This is the crisis of the "Missing Middle": the gap between social housing and high-end luxury apartments.
The Economics of Affordability
The challenge is structural. High land costs and construction prices make it difficult for private developers to deliver "affordable" stock without government subsidy. However, Alleyroads Perth is pioneering a new funding model that bridges this gap.
The "Impact Investment" Model
By partnering with superannuation funds that have a social impact mandate, we can accept a slightly lower internal rate of return (IRR) in exchange for long-term stability and positive social outcomes. This "patient capital" allows us to:
- Cap Rents: Designating 20-30% of units in our BTR developments as "Key Worker Housing" at 75% of market rent.
- Build Near Transport: Ensuring these affordable units are located near train lines and job hubs, reducing commute costs for residents.
Success Stories
Our recent precinct in Cockburn Central integrated 45 affordable dwellings into a larger commercial and residential hub. The result? A vibrant, diverse community that experienced 0% vacancy within 2 weeks of opening.
Funding affordable housing isn't charity; it's smart economics. A stable workforce underpins a stable economy, and providing housing for that workforce is one of the safest investments available today.
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