Economic value of universal housing design

Front cover of the report showing an older grey-haired couple sitting together smiling. Title is exploring the economic value in housing built to universal design principles.Consumers buy things that they want and need now rather than purchasing things with the future in mind. Well, that makes sense. For everyday items this poses no problems. But for expensive, longer lasting items, such as a home, it can be a problem. Many older Australians live in a home that was purchased in mid life. It was suitable then. But now that cherished home is challenging their independence in older age. That’s why all homes should have universal design features.

A new report based on a survey of care-givers, both paid and unpaid, provides insights into their experiences and observations on the impact of home design on their caring role. The researchers found that housing design features and proximity to amenities had a value that extended beyond those of residents. That is, it facilitates community capacity and social engagement, physical wellbeing and ease of providing care services. 

The executive summary concludes with a statement that supports universal design in housing for people to age well:

“The public value implicit in universally designed housing is conceptually demonstrated by associated increases in ageing well outcomes and reduction in the need for, the level of, and the time spent on, care to support positive ageing outcomes (ie. generating efficiency gains in achieving ageing well outcomes).

The key findings of the study 

    • Universal design features impact on the level of care needed to support ageing well.
    • The location of the home and access to amenities also has an impact on the level of care needed.
    • The time needed to support people with basic living activities is reduced.

The title of the report is, Exploring the economic value embedded in housing built to universal design principles: Bridging the gap between public placemaking and private residential housing.

The study was undertaken by RMIT University and the Longevity Group Australia.

Abstract: In this report, we explore the public value implicit in housing incorporating universal design principles. Value is conceptually demonstrated by identifying housing design and location attributes, associated with increases in ageing well outcomes via the reduction in the need for, the level of, and the time spent on care to support ageing in place. To do this a survey instrument is developed to capture the experiential knowledge of in home care service providers and their observations of the impact of the home on the ageing well outcomes of the seniors they care for and also on their capacity to provide care. We find that certain housing design and location feature have value that extends beyond that experienced solely by its residents, facilitating community capacity and social engagement, physical wellbeing and ease of delivery of public services such as care support.  

Universal Design in Housing: Politics vs Practice

A modern living room showing lots of circulation space between furniture.What is so difficult about including universal design features in all new housing? Is it cost or is it technical difficulty? The answer to both is, no. Perhaps this is more about a regulation ideology. The Housing Industry Association (HIA) has a policy statement that says as much. But do they have a case to continue that position for universal design in housing? 

In 2006 when the HIA policy was written (and ratified again in 2018) we hadn’t signed up to the UN Convention on the Rights of Persons with Disabilities. We didn’t have a National Disability Strategy or Livable Housing Design Guidelines either. But other businesses are recognising their ethical obligations for equity and inclusion and that inclusion has a strong business case. And here is the difference – the housing industry is a fragmented system that relies on regulation to hold all the parts together to guarantee consistency and certainty. Consequently, nothing will change without regulation.

So, should we have regulation for all new homes to have universal design features? To answer this question the Australian Building Codes Board commissioned a cost benefit analysis. It concluded that costs outweighed benefits. Even if it did cost more, is this a reason to continue building homes as if we are never going to grow old? 

In responding to the cost benefit analysis, two camps emerged. The community and academic sectors say the cost benefit analysis was skewed in favour of costs. Consequently the cost argument doesn’t hold. The housing industry continues to prosecute a cost argument as a basis for the status quo to remain.

April 2021 update: The Building Ministers’ Meeting agreed to mandate Silver level of the Livable Housing Design Guidelines in the National Construction Code. 

Key submissions to the ABCB

You can check out some of the submissions to the Australian Building Codes Board: 

Australian Network for Universal Design supports mandating the Gold level of Livable Housing Design Guidelines, and a subsidy system for rental housing. 

Melbourne Disability Institute and Summer Foundation supports Gold level of Livable Housing Design Guidelines, plus a subsidy for rental housing. This is based on their economic study that points out deficiencies in the ABCB report.

COTA NSW  (Council on the Ageing NSW) strongly supports the adoption of Gold level of Livable Housing Design Guidelines.

Rights&Inclusion Australia supports Gold level and Gold level + because they best meet the RIS objective.

Community Housing Industry Association supports Silver level of the Livable Housing Design Guidelines. They acknowledge Silver is a partial solution, but improvements might be possible over time.

Housing Industry Association supports subsidies and other financial incentives rather than regulation.

Property Council of Australia supports information and education initiatives for consumers. “If the additional costs laid out in this submission were estimated and included, this would reinforce the negative cost/benefit ratio outlined in the RIS.”

CUDA supports Gold level of Livable Housing Design Guidelines and questions whether a cost benefit analysis was the right approach to answer the object of the project, “To ensure that new housing is designed to meet the needs of the community, including older Australians and others with mobility limitations.

Editor’s note: The HIA’s policy statement focuses on wheelchair users and this is common in the industry. They argue, “The overwhelming majority of private homes will not be used, now or in the future, by people requiring wheel chairs [sic]”. This statement also ignores the human right to visit your friends and family.