NDIS Legacy Stock
Supply and Demand for NDIS property
Supply is not meeting demand for Disability Housing and this is excluding the need for participants looking to vacate legacy stock.
Legacy Stock is referred to as original housing, not purpose built, which SIL providers would rent to accommodate people with different levels of disability and need.
Some of this housing has been marginally modified to include ramps or safety handles and minor improvements to make life a little easier for someone with disability. They are usually ‘over crowded’ and have shared bathrooms with no to very little private personal space.
These homes are literally tired and needing a lot of maintenance and work done to better suit participant needs and new NDIS requirements.
Owners are not keen to spend the kind of $’s required with some looking to sell as land value to developers who want to build non NDIS residential property to sell to the open market.
What is more important is that of the 77% of SDA places currently in existence, they are accommodated in legacy stock. What will the impact be on the participants when these dwellings become defunded. A major prompt for the need for the re-homing of these residents.
With current undersupply and not enough being built in the pipeline, there is a looming major crisis. Where will they be housed?
Lea Burnet, at a recent summit, quoted that “a lot of these dwellings are no longer suitable for participant needs and the funding for them will cease over time. What this means to participants is when the owners of the properties are no longer getting funding” – we conclude that they will sell on the private market to the highest bidder to develop into new resi properties if they do not develop their property themselves to sell on the open market as a new residential house.
What the industry is seeing is because the legacy homes are unsuited, and with the advent of Specialist Disability Accommodation and the NDIS insisting on new minimum standards, no sooner that a participant (or family member) becomes aware of a new SDA build, that participant is making an application to move out of this legacy stock. And why not!
There is already a higher demand than there is supply for new SDA’s (excluding participants in legacy homes), with total demand estimated to grow to 52,000 SDA places by 2030, only 8 years away. Add to this those in legacy stock and the numbers are staggering.
Read more on current and future demand here
Further compounded to this is a shortage of land and a market fight against a family who want to buy that land to build their family home on. This market is also significant with an undersupply. Can you also identify the looming issue the SDA market if facing?
Current and projected future demand for SDA dwellings equates to a need for around 25,000 to 30,000 new dwellings to be built in the next 8 years! That is a massive ask.
Participants are wanting choice of options – the purpose of the SDA initiative, and when provided will gravitate to higher quality accommodation to suit their individual requirements. This will add further pressure on the supply of new SDA’s.
Legacy Stock is primarily unsuited accommodations for people with disability under the current NDIS stringent requirements.
Specialist disability accommodation
