Australia's Rental Crisis
The Anglicare's annual Rental Affordability report (rental snapshot looking at 45,000 available properties) revealed just how few vacant properties there are to rent and how unaffordable they are. "After thirteen years of producing the Rental Affordability Snapshot, it is clear that housing in Australia is broken," the report said.
Over 500,000 people left the country during the pandemic. Closed national borders prevented immigration and tourists from coming in.
With people leaving the country, Australia should have experienced many more properties available for rent. This has not occurred.
Causes for a lack of rentals-:
- investors have withdrawn from the market (about 20% of properties for sale are investors who are selling properties)
only around 8% of them (investor sales) are being bought by people who want to invest in housing and then rent it out
fewer houses available for rent
currently around 130,000 properties available for rent in Australia (10 years ago 170,000) - reduction of 25%
around 12% of the houses at the moment that are going to be sold are going to disappear from the rental market
COVID lockdowns caused people to want a better or larger house
discretionary income redirected from OS trips/shopping to housing and renovations during COVID
return of short stay accommodation for tourists
The number of houses that are affordable has diminished
The definition of affordable housing is housing that only costs you 30% of your income, the other 70% you need for living expenses.
'Housing in Australia is broken: only 1.6% of private rentals are affordable for those on minimum wage
If you're on some of the other welfare payments such as the age pension, or job seeker benefits, less than 1% of the properties across the entire nation would meet the definition of affordable. So what's happening is people are living in very unaffordable housing. They're making terrible choices moving further away from their family, further away from jobs and services, just so they can keep a roof over your head.
Inflation - cost of living rising
When it comes to the cost of living, housing is the number one cost per household whether that's rent or mortgage, and those costs are going to go up. There has been very little from the federal government to address this, not on a structural level.
Southport Real Estate Agents report a rise in homelessness on the Gold Coast. Fox's also provide property management. Affordability is really an issue on the Gold Coast. $2 million dollar units on the beach are doing nothing for the rental crisis.