Investing in communities

Affordable housing can feel like an oxymoron, especially in our capital cities. So what happens when in-demand key workers can’t actually afford to live where they’re needed? That’s one problem that Future Super is helping to address.  

Thanks to an investment within Future Super, around 200 people, in 102 families or households, are moving into a recently built community housing block in the Melbourne suburb of Box Hill, and have started paying affordable rents set at 75% of market rates. We’re stoked to see great these great apartments filling with life!      

Communities benefit when key workers aren’t pushed out. With Melbourne’s rents being what they are, those working as nurses, first responders, child carers and teachers, care workers, postal and transport workers or in other lower-paid but essential roles would otherwise have to live elsewhere, leading to a shortage of key workers.   

Workers like Fiona, who was given notice to vacate her previous rented home, having a catastrophic effect on her mental health. Her new home has come just in time for her to start her dream job as despatch officer for emergency response units. Check out her story in this video.

In partnership with St George Community Housing, Conscious Investment Management and Housing Australia, with support from the Minderoo Foundation and Paul Ramsay Foundation, these homes will prioritise frontline workers – in a community where 44% of renters face housing stress. These homes are close to transport and essential services.  

Crucially, the financing has been structured to keep these homes affordable for decades, with St George Community Housing retaining ownership after the funding period. This is more than just another affordable housing investment; it’s a national first.   

Future Super is leading the way – this is the first project to be completed under the Housing Australia Future Fund with superannuation fund financing. This national first sets a precedent for how the super sector can help tackle Australia’s housing crisis.  

This is an alternative impact investment that all Future Super’s investment options have exposure to.   

‘Impact’ means that it deliberately targets positive change, and ‘Alternative’ means that it’s an investment that’s outside of the share market; in this case, this investment is via exposure to the Conscious Investment Management’s Social Housing Fund 2, which partners with HAFF. HAFF is a federal government funding initiative designed to support acute housing need.   

The investment team behind Future Super identified this as a suitable investment that also leads the way – by showing that using private capital to create more affordable housing can be profitable. This is a landmark moment for housing policy, superannuation investment, and community outcomes, providing a model for scaling affordable housing across the country that we hope will be copied widely.  

This is how superannuation can drive change: encouraging more investment in affordable housing creates lasting community benefits.   

Investments may be held directly, or indirectly through Exchange Traded Funds (ETFs) and other managed investment vehicles.