Turning the housing crisis around: how a circular economy can give us affordable, sustainable homes

Households across Australia are struggling with soaring energy and housing costs and a lack of housing options. Mixed with a climate crisis, economic volatility and social inequality, it's a potent set of policy problems. Australia needs a circuit-breaker - a bold national project to tackle the climate crisis and support households by shifting to a more sustainable housing industry.

This is a project based on circular economy principles. The emphasis is on reducing materials and resources, optimising building lifespan, designing for reuse and zero waste, and regenerating nature. By getting the most out of finite resources, we can minimise waste and shrink our carbon footprint.

Our research for the Australian Housing and Urban Research Institute (AHURI) applies these principles to housing. We developed a comprehensive strategy for the sector's transition to a circular economy. It gives priority to local jobs, access to affordable housing, resilient and functional design, and carbon-neutral, energy-efficient operation.

The circular economy offers answers to the dual challenges of housing affordability and sustainability. These solutions work across households, renters and owners.

Both the climate crisis and the human right to adequate housing demand urgent policy responses. Despite this, new energy-efficiency standards that the nation's building ministers had agreed would take effect in October this year have since been delayed in a majority of states.

Standards are the key to unlocking the shift needed to deliver housing that is both affordable and sustainable. In combination with fiscal and financial policy frameworks, business support schemes and education and training, the housing industry can develop its capacity to embrace and exceed standards. Australian households and the planet will benefit.

Housing policymakers across Asia and Europe are actively pursuing circular economy goals. As a result, Australia can learn from a wide range of circular economy approaches. Using better designs, techniques and materials, we can readily reduce the carbon footprint of our housing.