ANZ’s $A10 billion commitment to support access to housing
- written by Caryn Kakas
In responding to the pandemic, governments at all levels were confronted with the challenge of being able to provide access to stable accommodation for everyone. The need for people to be safe in place highlighted the fundamental importance of housing as a basic need for all people in our community. The economic and social pressures that resulted from COVID-19 have highlighted the stark reality of the gaps in the housing market (including the ability to access social and affordable housing). The economic fallout has increased the demand for housing, services and supports to respond to both the pandemic and its aftermath.
Is there a role for financial institutions to play?
ANZ believes the bank can play a role in helping improve the availability and affordability of housing, including support for innovative housing delivery models across the private, public and not-for-profit sectors.
At the end of 2018 ANZ committed to fund and facilitate $A1 billion of investment by 2023 to deliver around 3,200 more affordable, secure and sustainable homes to buy and rent in Australia. In 2020, the bank has already exceeded this target. In addition to $A1.02 billion of investment in Australia, ANZ has also funded and facilitated around $NZ1.35 billion to support the delivery of social and sustainable housing across New Zealand.
Although 2020 has been a more difficult year than most, ANZ continued to build its housing supply pipeline in direct partnership with new and existing clients to support new supply into the market.
In 2020 the bank has:
- Jointly arranged two additional bond issuances for the Commonwealth’s National Housing Finance and Investment Corporation including the largest social bond for housing in Australia ($A562 million);
- arranged bonds for Kāinga Ora (Housing New Zealand Corporation) to support the delivery of more social and sustainable housing (jointly $NZ1 billion; solely $NZ300 million);
- supported the first Assemble Model, designed to bridge the gap between renting and owning a home to market;
- invested in the development of a Specialist Disability Accommodation (SDA) pipeline; and
- helped build the case for institutional investment in long-term rental housing through the backing of a range of ‘build-to-hold’ projects.
The need for housing is an essential ingredient that ensures that communities are able to thrive. With that in mind, ANZ's work has only just begun. The bank has set a new commitment to fund and facilitate $A10 billion of investment by 2030 to deliver more affordable, accessible and sustainable homes to buy and rent in Australia and New Zealand. Because access to housing is the best way to ensure equality of social and economic opportunities for everyone in our community.
Caryn Kakas is Head of Housing Strategy at ANZ