Community housing is often perceived as a universally beneficial solution, providing affordable and equitable housing options for all demographics in need.​ Individuals are under the assumption that when these affordable housings are provided from a non-profit or governmental organization, the houses are more credible and far from discriminatory.

Despite the well-intentioned nature and expectant of community housing, certain systemic challenges hinder its effectiveness:​

Perverse Incentives: A study by the University of New South Wales revealed that in Australia, community housing providers receive higher rental income when accommodating older adults on pensions compared to younger individuals on allowances. Specifically, providers receive $100 extra each week for housing someone on the aged population compared with someone on youth allowance. This financial disincentive discourages providers from offering housing to younger individuals, effectively locking them out of community housing opportunities. 

Housing Affordability Crisis: The broader housing affordability crisis further worsens the issue. Rising rental prices and a shortage of affordable housing options disproportionately affect younger Australians, making it increasingly difficult for them to secure stable housing.

While community housing aims to offer affordable living arrangements, the current structure unintentionally favors certain demographics over others:​

Income-Linked Rent Structures: Rent calculations based on tenants' income levels mean that those receiving higher social security payments contribute more in rent. This system creates a financial bias against younger individuals who typically receive lower welfare payments, resulting in reduced rental income for housing providers when accommodating this demographic. 

Inadequate Support for Young People: The lack of targeted support and incentives to house younger individuals leads to their increased vulnerability to homelessness and housing instability.

1. Policy Reforms: Adjust funding models to ensure equitable financial incentives for housing providers, regardless of the tenant's age or income source. This could involve standardizing rental subsidies to eliminate biases against younger individuals.​

2. Targeted Support Programs: Develop initiatives specifically designed to assist young Australians in securing stable housing, such as increased rental assistance or dedicated youth housing projects.​

3. Increase Affordable Housing Supply: Invest in the construction of affordable housing units to alleviate the overall shortage and reduce competition among vulnerable groups.​

By implementing these strategies, community housing can become a more inclusive and effective solution, ensuring that all individuals, regardless of age, have access to safe and affordable housing.