Key workers and housing affordability in the City of Melbourne

Economic impact

• Nearly a third of the workforce in the City of Melbourne are considered key workers, contributing significantly to the local economy
• Key workers in health and hospitality sectors make up a significant portion of the City's workforce, supporting key industries

Demographics

• City of Melbourne key workers tend to be younger, born overseas and speak a language other than English at home

Income

• The proportion of key workers in some industries on very low and low incomes in the City of Melbourne is well above the key worker average
• Other industries, such as Education and Training and Health Care and Social Assistance, have a relatively low proportion but a high number of persons on very low and low incomes

Commute patterns

• Most key workers (86%) in the City of Melbourne live outside the LGA
• More than 40% of key workers travel further than 20km to work.

Housing affordability

• Overcrowding is more prevalent in key worker households compared to all worker households for the City
• Key worker households are twice as likely to be in housing stress, compared with all City of Melbourne workers
• ‘Traditional’ key workers, such as paramedics, firefighters and teachers, are less likely to be in housing stress
• Many key worker households could not afford a median-price unit in the City of Melbourne

Future need

• City of Melbourne key workers are projected to grow by 50% between 2021 and 2041

The full report was provided to the City of Melbourne and integrated into their Defining key worker housing research. The purpose of this research is to support the development of policy to secure affordable rental housing for key workers.

Key workers are generally lower paid workers in occupations considered important to the effective functioning of a city. There is no standard definition of key worker occupations.

For the purpose of this report, the key worker definition was based on traditional key worker occupations identified in AHURI Final Report No. 355, as well as a selection of occupations specific to the role and function of the City of Melbourne’s economy.