Supply And Demand of NDIS Housing
The NDIS has agreed to give investors significant rental income when investing in an SDA Property under the NDIS, and that is because an NDIS or SDA property includes features and benefits to support independent living and choice and control for people with disability that other residential properties do not. When the NDIS brought in SDA funding, it was forecast that approximately 28,000 people, 6% of all NDIS participants, would be expected to be supported by Specialist Disability Accommodation (SDA Property) funding under the NDIS.
A recently released report has calculated that the current supply of SDA property requires a 60% boost to accommodate the 28,000 NDIS participants expected to qualify for SDA funding.
Given that SDA is anticipated to account for NDIS spending of $700 million a year once the scheme is fully implemented, it is important to comprehend the nature and magnitude of demand. The shift from grant-based to market-based funding systems, in which people with disabilities control their own funding, is expected to create a $5 billion disability housing market over the next five years.
Current & Future demand for SDA Housing
According to an article in The Urban Developer, the demand for specialised disability accommodation is expected to increase by almost five times the current amount in the next eight years. Most existing SDA dwellings are not included in the requirements as the older, group homes and legacy properties will be phased out as they are no longer suitable for SDA participants under the new NDIS SDA scheme.
The study found that the current level of SDA housing across the country is far short of what is required in order to meet the NDIS housing projected demand. The highest demand was found in areas with the greatest population growth. The findings illustrate the contrast between people residing in current SDA (mostly government-funded group homes) and those who may want to live in SDA in the future.
SDA Housing Current Supply
According to Laila Burnet, at the recent Disability Housing Summit “There are currently only 1,744 new SDA dwellings in the development pipeline. There are 552 in Queensland and 506 in New South Wales, with the balance being distributed among the other states”.
Leila believes that although this sector is still in its infancy, it is gaining traction and shifting towards maturity, and there is still a huge amount of growth opportunity remaining, she said.
Leila said that “we must see a lot more development in order to meet the demand that will arise over the next eight years as more people suffer disability and are enrolled in the NDIS.”
Participant Demand for SDA
The Health Care Providers Association says that specialist disability accommodation has grown into a $2.5-billion asset class in just 5 years and is poised to expand further as a result of a successful NDIS program, which is forecast to triple by 2023.
According to Leila Burnet, data from the latest projections show that by 2030 there will be a need for 52,000 SDA places.
The demand for new SDA housing has risen among
participants already in SDA Housing. In Queensland, one out of six people with disability who are currently living in an SDA dwelling is seeking an alternative SDA home. Ensure you build with the Participant firmly in mind, is the lesson learned here.
The NDIS quarterly report of December 2021 stated there were 18,361 NDIS participants with SDA needs. The greatest surge in SDA applications is from individuals with neurological problems, stroke, and multiple sclerosis. Participants with intellectual disability make up 47%, while those with cerebral palsy account for 11%, and 10% have autism.
NDIS Housing Investment
The NDIS housing scheme is still relatively new, but it is developing quickly and SDA funding is becoming more in demand. More people with disabilities are applying for NDIS funding through the Specialist Disability Accommodation Program in ever-increasing numbers.
When investing in an SDA house, avoid being swayed by marketing hype that seeks to exploit your greed and panic. Prioritize building with participants in mind, investing more upfront in order to future proof your investment to draw your tenants in sooner and hold onto them longer.
Work with a professional team like
NDIS Property Australia that adheres to a strict work ethic for SDA property has floor plans tailored to clients' needs, helps you
navigate the complexities of SDA housing, and provides education on how to make the crucial informed decision on
NDIS housing investment.
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