Using the standard terminology and price benchmarks it is then important to undertake a more detailed analysis of housing needs, based on demographic patterns at local and regional levels, and an appraisal of opportunities to meet this need given current housing stock and market trends. The housing needs analysis provides the basis for:
- identifying future housing needs including affordability, as a basis for developing appropriate land use planning responses within established and new growth areas
- justifying the introduction of specific planning mechanisms for affordable housing, including the collection of affordable housing contributions where indicated.
Housing needs analysis results can:
- form part of a local housing strategy (combining the needs analysis, policy objectives, and strategies to achieve these goals, including land use planning strategies);
- inform the preparation of a residential development strategy (a more focused spatial planning strategy designed to identify and facilitate residential development opportunities);
- direct a targeted review of the existing local or regional planning framework, as a basis for introducing specific measures for affordable housing.
The Leading Practice Guide emphasises local housing needs and market trends, using data available at the Local Government Area (LGA) level. It may also be used by LGAs operating collaboratively or by state or territorial governments operating at the regional or sub-regional level.