Australian Dream of Home Ownership ‘Crushed’ by Rising Rents, Inflated House Prices
Rising rents and inflated house prices are crushing the Australian dream of home ownership, according to a damning report from Anglicare Australia. The report, based on an analysis of over 45,000 rental listings, declared the market the worst it has ever been.
The report found that the national vacancy rate has hit an all-time low of 0.7 percent, meaning that renters have few options to choose from. At the same time, average rents have skyrocketed by $200 per week compared to pre-pandemic levels. This makes it almost impossible for people on low incomes to afford a decent place to live.
The report points to the increasing reliance on the private rental market for affordable housing as a major contributing factor to the affordability crisis. However, it argues that federal subsidies for private investors, such as Commonwealth Rent Assistance and negative gearing, are exacerbating the problem by driving up prices.
Only 289 of the 45,000 homes listed were found to be affordable for a person earning a full-time minimum wage. Affordability for single people has halved in the last two years, and even couples with both partners working full-time are locked out of nearly 90 percent of rentals.
People on Centerlink payments are being pushed out of the housing market altogether, with only 1 percent of rentals being affordable for someone on the age or disability support pension. For those out of work, the affordability rate is zero, even with the highest rate of rent assistance.
The report calls for urgent action to address the housing affordability crisis. This includes increasing JobSeeker payments, investing in public housing, and reforming the private rental market to ensure that everyone has access to safe and affordable shelter.
