A new calculator reveals the significant value of social housing.

The SIGMAH calculator (Social Infrastructure and Green Measures for Affordable Housing) can quantify the extensive social, economic, and environmental benefits of social and affordable housing. 

The innovative calculator estimates that the 40,000 social and affordable homes, backed by the Commonwealth's National Housing Accord and Housing Australia Future Fund over the next five years, will generate an additional $4.4 billion in broader benefits over the next four decades, in addition to the appreciating value of the assets themselves.

Once constructed, these homes should offer approximately $16.2 billion in cost-of-living relief, primarily through reduced rental costs compared to the private sector. 

The SIGMAH calculator is a tool for government, community housing organisations, and the broader housing sector. 

It is intended to help estimate Wider Social and Economic Benefits (WSEB), allowing decision-makers to gauge reduced public expenditure in areas like health, policing, and community services by making housing accessible to those in need. 

The calculator also estimates private benefits such as increased consumption, income, and educational attainment.

It also provides monetary estimates for Greenhouse Gas (GHG) and environmental benefits resulting from green spaces, dwelling designs, access to transportation options, and the dollar value of lower CO2 emissions due to energy-efficient new dwellings.

The calculator was created with the backing of the Community Housing Industry Association, whose CEO Wendy Hayhurst says it will be a powerful and innovative step forward. 

She says that the SIGMAH calculator provides evidence of the transformative impact of social and affordable housing, not just for individuals but for society as a whole, aiding the creation of resilient, sustainable communities.

The tool was developed by Associate Professor Christian Nygaard and Dr Trevor Kollmann at Swinburne University of Technology. 

It builds on research measuring the potential cost offsets to the public sector associated with providing secure housing for those experiencing complex and long-term homelessness.

Dr Nygaard notes that secure, appropriate, and affordable housing is pivotal to healthy communities, and the SIGMAH calculator quantifies this impact. 

The Lord Mayor’s Charitable Foundation played a major role in funding the calculator, underlining its commitment to affordable housing. 

The National Housing Finance and Investment Corporation supported the project with a capacity grant.