Matching markets in housing and housing assistance

This research proposes ways policy makers might consider the digital platform revolution in relation to housing markets. Platforms such as Airbnb and Uber replaced existing matching market managers. Their very substantial improvement in performance has been made possible by technology—more powerful computer chips; the Internet; the World Wide Web; broadband communication, and programming and operating systems that have dramatically reduced the search and transaction costs that previously meant many matching markets did not function well. The housing system is comprised of numerous matching markets. This research identifies five sub optimal matching markets in housing, and proposes solutions: swaps and transfers in public housing—we outline how social housing tenant mobility and stock utilisation can be improved by the use of an algorithm to facilitate chain-letting. accessible housing—a reiteration of the Victorian-based Housing Hub would improve the discoverability of accessible properties and matching to people living with disability. low-cost private rental housing—some low-cost private rental housing, currently occupied by higher income households can be matched to lower-income households using a headlease program. apartment supply for low/mid income earners—development of apartments can be de-risked by a focus on owner-occupiers, quality and design, which addresses settlement risk, reduces the profit margins required, thus improves affordability, and better matches supply and demand. precinct-level urban development—coordination is a problem impeding the redevelopment of greyfield suburbs. A citywide platform is proposed, which can enrol landowners and others at any time, permitting them to indicate their interest in participating in potential redevelopment projects.