Big changes are needed for the SDA market to meet its potential to help provide housing for an estimated 28,000 young people with disability.
The SDA market has grown from nothing to a $2.5 billion asset class in just 5 years. But the rapid growth has outstripped the evolution of government infrastructure causing some instability in the market.
Earlier this year, the Summer Foundation established the SDA Investor Think Tank in collaboration with a group of investment fund managers, to consider how the market could best be supported through the next growth stage.
The SDA Investor Think Tank, which includes investment fund managers who have collectively invested nearly $650 million in the SDA market, produced the SDA Investor Think Tank Findings and Recommendations Report. It identifies issues and opportunities that require urgent attention to help achieve market maturity.
Think Tank members presented the report to the Minister for the National Disability Insurance Scheme, Linda Reynolds, at an SDA Roundtable held by the Minister in August.
Minister Reynolds described the report as a “great piece of work” with sensible recommendations. She committed to gathering more information and developing a plan to implement solutions.
“The commitment from Minister Reynolds also reaffirms that effective collaboration is essential in an emerging market in order to meet the needs of the government, the NDIA, participants, providers and investors,” said CEO Dr Di Winkler in a co-authored Pro Bono Australia article.
“Everyone benefits if the SDA market reaches its full potential – participants access appropriate housing, investors and providers are able to offer housing which enables positive outcomes, and the government leverages private capital that helps to achieve NDIS sustainability.”