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Adelaide launches innovative housing program to transform unused spaces into homes amid crisis

Adelaide has unveiled a new housing initiative, ARCHI, converting vacant city spaces into residential units to tackle the severe housing shortage.

In a new initiative by the City of Adelaide, an ambitious program aiming to convert unused building space into housing has been unveiled today, in partnership with the State Government. The Adaptive Reuse City Housing Initiative (ARCHI) plans to offer 50 adapted dwellings each year within the central business district and North Adelaide.

This innovative program is backed by $500,000 in State Government grants distributed over the next two years. Adelaide, currently holding the nation’s lowest rental vacancy rate at 0.6 percent, will notably benefit from this initiative which aims to alleviate the acute housing shortage.

The initiative is part of City of Adelaide’s broader strategy to attract more residents into the area, with a target of reaching 50,000 residents by 2036. By converting spaces above shops and commercial premises into residential apartments, ARCHI provides a rapid solution to the pressing need for more housing.

Lord Mayor Jane Lomax-Smith stressed the importance of converting vacant spaces into livable homes. “The City of Adelaide has a population target of 50,000 people living in the city by 2036 which requires a significant increase in housing supply,” she said. “In our current housing crisis, even small numbers are important in addressing the housing supply challenge.”

Nick Champion, Minister for Housing and Urban Development, highlighted the uniqueness of ARCHI’s approach and its promise for potential residents. “Converting vacant space above shops into possible housing is a genuine option that will appeal to many people wanting a cosmopolitan and vibrant lifestyle,” he noted. The government also aims to refine regulations to facilitate more such conversions, ensuring economic viability.

This week’s launch event, held in Leigh Street, showcased several already converted buildings and also introduced a new website page specifically dedicated to ARCHI. Additionally, the ARCHI Incentive Scheme and ARCHI Guide Notes were launched, providing crucial information and financial incentives tailored towards adaptive reuse projects up to four storeys.

Extensive research and preparatory work underpin ARCHI’s strategy. A partnership with the University of Adelaide’s Cities and Housing postgraduate course enabled a comprehensive city-wide building audit, highlighting 148 potential sites for adaptive reuse.

Further engagement with regulatory environments at various governmental levels continues as part of the initiative’s approach to overcome barriers to adaptive reuse. An ongoing review of prior adaptive reuse projects both locally and interstate also aids in refining the approach and administrating best practices.

Since its formal establishment in October 2023, ARCHI has made significant progress. The initiative has not only influenced policy through its steering group led by the Lord Mayor but has also extended existing council incentives for sustainable development, heritage, and noise management to include adaptive reuse projects.

ARCHI aims to contribute significantly to resolving Adelaide’s housing challenges, while also stimulating urban renewal and economic development within the city.

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