NDIS Housing Supply and Demand

What does the research say about SDA Housing Supply and Demand?

Supply Shortage -

There is a significant shortage of SDA housing across Australia, with the current supply falling short of the projected demand. According to the NDIS Annual Report 2021-2022, only 28,000 NDIS participants were receiving SDA funding, while projections indicate a potential demand for over 35,000 SDA dwellings by 2032-33.

Geographic Disparities -

The availability of SDA housing varies considerably across different regions and states, with major cities and metropolitan areas generally having a higher concentration of SDA dwellings, leaving regional and remote areas with significant supply gaps.

Unmet Demand -

Many NDIS participants with approved SDA funding are unable to find suitable homes due to a supply shortage, leading to extended wait times or the need to remain in inappropriate or unsuitable housing. 

Increasing Demand -

The demand for SDA housing is expected to continue growing as more NDIS participants become eligible and transition out of aged care facilities, group homes and other unsuitable accommodation. The ageing population and the increasing prevalence of disabilities are also contributing to the rising demand for accessible and specialised housing.

Investment opportunities -

The supply shortage and growing demand present investment opportunities for developers, investors, and SDA providers to construct or modify properties to meet SDA design requirements. However, concerns have been raised about a potential oversupply of certain SDA design categories in some areas, highlighting the need for careful market analysis.

Funding and policy considerations -

The availability and sustainability of NDIS funding for SDA housing, as well as the pricing and payment models, are crucial factors influencing supply and investment decisions. Ongoing policy changes and regulatory updates by the National Disability Insurance Agency (NDIA) can impact the SDA market dynamics.

What are vacancy numbers across Australia for SDA HOUSING within the NDIS?

Rates vary significantly across states, regions, and design categories - 

National Vacancy Rates -

According to the NDIS Quarterly Report for the period ending 

31 December 2022, the national vacancy rate for SDA dwellings was approximately 10%.

State and Territory Variations -

The vacancy rates for SDA housing can vary significantly between different states and territories. For example, the same NDIS report indicated higher vacancy rates in South Australia (15.4%) and Western Australia (14.5%), while states like New South Wales (8.1%) and Victoria (7.6%) had lower vacancy rates.

Regional Disparities -

Vacancy rates tend to be higher in regional and remote areas compared to major cities and metropolitan areas. This is often due to the limited availability of SDA housing options and the concentration of demand in urban centres.

Design Category Variations -

Certain SDA design categories may experience higher or lower vacancy rates depending on the local demand and supply dynamics. For instance, the ROBUST category, which caters to participants with higher support needs, may have lower vacancy rates in some areas due to limited supply.

Investment and Supply -

The vacancy rates for SDA housing are closely tied to the investment and construction of new SDA dwellings. Areas with higher investment and supply of SDA housing may experience lower vacancy rates, while regions with limited investment may have higher vacancies due to supply shortages.

Participant Preferences -

Vacancy rates are also influenced by NDIS participant preferences, such as location, accessibility features and proximity to services and support networks. Areas with SDA housing that align with participant preferences may have lower vacancy rates.

It's important to note that vacancy data for SDA housing is not consistently reported or publicly available for all regions and design categories. The National Disability Insurance Agency (NDIA) and disability service providers may have more detailed and up-to-date information on vacancy rates in specific areas or for particular SDA design categories.

Regular monitoring and analysis of vacancy rates is crucial for identifying potential oversupply or undersupply situations and informing investment decisions and policy adjustments to ensure an adequate supply of suitable SDA housing for NDIS participants across Australia.