Low-income renters priced out of every capital city, Everybody’s Home report finds



23 September 2024
News.com.au

Struggling Australians on income support are now either completely priced out of, or navigating severe rental stress across all capital cities and major regional centres across Australia due to rising prices, with one advocacy group calling for urgent action.   :(

Defining rental stress as situations where more than 30 per cent of a person or household’s income is being spent on rent, Everybody’s Home Priced Out Report found individuals receiving $499 a week through Jobseeker and Commonwealth Rent Assistance payments would not be able to afford the average weekly rent of $547 across Australia.

Cost pressures were more extreme for vulnerable renters in capital cities, where the average weekly rent for units is $621, which would leave someone on the age or disability support pension with just $8 a day after paying rent.

Jobseeker recipients would need to fine another $122 a week in order to cover the escalating rents.   :(

Individuals on Jobseeker payments and Commonwealth Rent Assistants were completely deadlocked from affording the rent of an average unit rental in Australia.

The report also found people on minimum wage would also be in rental stress. 

Low-income renters who in capital cities and work in full-time minimal wage jobs would still have to use 78 per cent of their $800 weekly income to cover housing costs, leaving them with $379 leftover.

A couple on minimum wage with two children would still be spending 34 per cent on accommodation, with $1209 a week leftover.

Sydney was the most expensive capital city, with Jobseeker and the age and disability support pensions not enough to meet the average rents, while people in coupled households and higher payments had “dangerously little left over to meet other essential costs”.

While Adelaide was the most affordable state in the study, people on welfare payments would still be spending more than 50 per cent of their income on rent.


Despite indexation changes slightly boosting single Jobseeker recipients by $15.30 a fortnight and increasing the disability and aged care pension by up to $28.10 a fortnight, Everybody’s Home spokesman Maiy Azize said they were “falling short of what people actually need,” and being eclipsed by high rents, bills and the cost of essential goods.

While Commonwealth Rent Assistance payments were also boosted by 23 per cent on Friday, the report notes only one in four people on working age payments were eligible for payments and they weren’t structured to help people in sharehousing or informal housing arrangements.

“People on the lowest incomes are falling through the cracks – they’re becoming homeless, sharehousing well into their adult years, living in overcrowded homes, and unable to move out of the family home because there simply isn’t enough affordable housing for them,” she said.

“Even if they are willing to leave their communities, the pursuit to find and secure an affordable home elsewhere is dire.”

Everybody’s Home spokesman Maiy Azize said boosts to social security payments through indexation were not enough to meet the soaring cost-of-living.   :(

Ms Azize also called for urgent intervention by the federal government, including boosts to Centrelink payments, and social housing numbers, which currently are at a shortfall of 640,000 homes, and set to reach nearly 1 million within the next two decades.

“This desperate need for social housing doesn’t go away by hoping the private market will make homes affordable. That is the status quo, and it is clearly failing,” she said.

The report also made a number of other recommendations like a mandate from the Commonwealth for state and territory governments to uniformly end no-cause evictions, limit unfair rent increases, adopt minimum standards from rental homes and create an independent body to enforce rules and regulations.

It also proposed a phased approach to gradually reduce the benefits of the capital gains tax for investment homes over a 10-year period, which the report said would “guard against concerns about the impact of the reform on housing markets,” as well as phasing out negative gearing.

We need a two year rent freeze, and then rent caps.  Looks like the greens have got the right idea.   :(

whiteknight wrote on Sep 23^rd, 2024 at 7:11am:

We need a two year rent freeze, and then rent caps.  Looks like the greens have got the right idea.   :(

that won't help low income earners

Rent Freeze Now   :) 
FIX THE housing crisis
Let's end tax handouts for property investors so we can make renting and buying your first home affordable again.

greens.org.au



Make unlimited rent increases illegal

Labor is making the rental crisis worse.   :(

Millions of renters are struggling to keep a roof over their head, while the Labor Government continues to hand billions in tax handouts to wealthy property investors.

People need relief right now.

That's why the Greens are fighting for:

An immediate rent freeze for 2 years coordinated through National Cabinet
Following the freeze, capping future rental increases at 2% every 2 years
More public and genuinely affordable housing to be built via a new public property developer
A new National Renters Protection Authority to enforce the rent freeze and caps
New national tenancy standards, such as the guaranteed right to lease renewal
Labor has the power to fix this housing crisis – they're just choosing not to.

The Greens are the only party fighting for renters. Join our campaign for a national rent freeze now.

John Smith wrote on Sep 23^rd, 2024 at 8:25am:

whiteknight wrote on Sep 23rd, 2024 at 7:11am: We need a two year rent freeze, and then rent caps.  Looks like the greens have got the right idea.   :( that won't help low income earners

Indeed.

Rents are already too high for low income earners so a rent freeze and caps won't help them at all.

What is needed is a (big) reduction in rents followed by a freeze and caps but I'm pretty sure Hell will freeze over before that ever happens.

whiteknight wrote on Sep 23^rd, 2024 at 9:00am:

Make unlimited rent increases illegal

limited to once a year in most states

Carl D wrote on Sep 23^rd, 2024 at 9:12am:

Indeed. Rents are already too high for low income earners so a rent freeze and caps won't help them at all.

Aside from that, if you want to freeze rent, you need to freeze mortgage repayments, council and water rates, insurance, repair costs, management fees and any other expense that landlords face. Otherwise landlords won't rent the property and demand for rentals INCREASES

If there is a recession and high unemployment Australia will suffer social disorder as the prevalence of homelessness will rise.

No government in Australia is in control of this problem.

Queensland appears to be ground zero for homelessness. Perhaps the homeless in the Southern States are spending their last dollar on a ticket to Queensland.

John Smith wrote on Sep 23^rd, 2024 at 9:31am:

Carl D wrote on Sep 23rd, 2024 at 9:12am: Indeed. Rents are already too high for low income earners so a rent freeze and caps won't help them at all. Aside from that, if you want to freeze rent, you need to freeze mortgage repayments, council and water rates, insurance, repair costs, management fees and any other expense that landlords face. Otherwise landlords won't rent the property and demand for rentals INCREASES

Yes - I know a landlord who recently sold a rented investment Unit as the costs
for holding it were too high.
That included Dirty Dan's new land taxes which started in Jan this year 2024.

BTW - he also got butt reamed for CGT too.

whiteknight wrote on Sep 23^rd, 2024 at 7:09am:

Low-income renters priced out of every capital city, Everybody’s Home report finds 23 September 2024 News.com.au Struggling Australians on income support are now either completely priced out of, or navigating severe rental stress across all capital cities and major regional centres across Australia due to rising prices, with one advocacy group calling for urgent action.   :( Defining rental stress as situations where more than 30 per cent of a person or household’s income is being spent on rent, Everybody’s Home Priced Out Report found individuals receiving $499 a week through Jobseeker and Commonwealth Rent Assistance payments would not be able to afford the average weekly rent of $547 across Australia. Cost pressures were more extreme for vulnerable renters in capital cities, where the average weekly rent for units is $621, which would leave someone on the age or disability support pension with just $8 a day after paying rent. Jobseeker recipients would need to fine another $122 a week in order to cover the escalating rents.   :( Individuals on Jobseeker payments and Commonwealth Rent Assistants were completely deadlocked from affording the rent of an average unit rental in Australia. The report also found people on minimum wage would also be in rental stress.  Low-income renters who in capital cities and work in full-time minimal wage jobs would still have to use 78 per cent of their $800 weekly income to cover housing costs, leaving them with $379 leftover. A couple on minimum wage with two children would still be spending 34 per cent on accommodation, with $1209 a week leftover. Sydney was the most expensive capital city, with Jobseeker and the age and disability support pensions not enough to meet the average rents, while people in coupled households and higher payments had “dangerously little left over to meet other essential costs”. While Adelaide was the most affordable state in the study, people on welfare payments would still be spending more than 50 per cent of their income on rent. Despite indexation changes slightly boosting single Jobseeker recipients by $15.30 a fortnight and increasing the disability and aged care pension by up to $28.10 a fortnight, Everybody’s Home spokesman Maiy Azize said they were “falling short of what people actually need,” and being eclipsed by high rents, bills and the cost of essential goods. While Commonwealth Rent Assistance payments were also boosted by 23 per cent on Friday, the report notes only one in four people on working age payments were eligible for payments and they weren’t structured to help people in sharehousing or informal housing arrangements. “People on the lowest incomes are falling through the cracks – they’re becoming homeless, sharehousing well into their adult years, living in overcrowded homes, and unable to move out of the family home because there simply isn’t enough affordable housing for them,” she said. “Even if they are willing to leave their communities, the pursuit to find and secure an affordable home elsewhere is dire.” Everybody’s Home spokesman Maiy Azize said boosts to social security payments through indexation were not enough to meet the soaring cost-of-living.   :( Ms Azize also called for urgent intervention by the federal government, including boosts to Centrelink payments, and social housing numbers, which currently are at a shortfall of 640,000 homes, and set to reach nearly 1 million within the next two decades. “This desperate need for social housing doesn’t go away by hoping the private market will make homes affordable. That is the status quo, and it is clearly failing,” she said. The report also made a number of other recommendations like a mandate from the Commonwealth for state and territory governments to uniformly end no-cause evictions, limit unfair rent increases, adopt minimum standards from rental homes and create an independent body to enforce rules and regulations. It also proposed a phased approach to gradually reduce the benefits of the capital gains tax for investment homes over a 10-year period, which the report said would “guard against concerns about the impact of the reform on housing markets,” as well as phasing out negative gearing.

The Greens should stick to promoting public housing, it's the only way Oz can get out of the current massive private housing market failure with its unaffodable new mortgages and rents. 

whiteknight wrote on Sep 23^rd, 2024 at 7:11am:

We need a two year rent freeze, and then rent caps.  Looks like the greens have got the right idea.   :(

And they should limit NG and CGT discounts to brand new houses that have never been built before which would add to the supply instead of recycling the same old dumps built 50 years ago. Why is it so hard for them ?

High rent is a symptom of the problem, not the cause.

Low income buyers even worse off....