Rental Affordability Still Poor for Low Earners

Government-assisted low income earners are being squeezed out of the private rental market, according to new Anglicare Australia research.

For those who live on minimum wage or benefit programs the concern is not just about buying a home but being able to find an affordable place to rent.

“The reality is that the housing system is failing millions of Australians,” explains Anglicare Australia executive director Kasy Chambers.

“Our system is rigged against renters.”

Almost all of our major cities have become unaffordable for people on low incomes, and the Anglicare report also shows that regional areas are failing to offer any relief.

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“There is a huge shortage of secure, affordable rentals. That’s causing record levels of rental stress and even homelessness.”

Of a total 67,365 available properties across Australia, 485 rentals were affordable for a single person on the Disability Support Pension. Only 180 were affordable for a single parent with one child on the government’s Newstart program, and three were affordable for a single person on Newstart.

A single person in a property or share house on Youth Allowance would only be able to find two affordable rentals in Australia, and no affordable rentals were available for a single person on Newstart or Youth Allowance in Sydney, Canberra, Melbourne, Adelaide, Darwin or Perth.

The nationally accepted benchmark for rental affordability suggests rent reach no more than 30 per cent of a household budget so as to not cause financial stress.

“With just six per cent of rental properties on the private market affordable and suitable for people on the lowest incomes, the size of the crisis is clear,” the report said.

Incentives for developers?

A recent report weighing in on the nation’s housing affordability challenge suggests the answer could come in the form of developer incentives.

Through planning schemes such as inclusionary zoning and density bonuses, the Australian Housing and Urban Research Institute (AHURI) report proposed requirements on developers to include affordable housing when land is rezoned and incentives for projects offering lower rents or sale prices.

Anglicare outlined a number of suggestions to tackle the problem in their report, including a review of rental agreements and a reform of government income support, including Commonwealth Rent Assistance.

There are approximately 760,000 people on Newstart in Australia. More than 95,000 receive Youth Allowance, and approximately 760,000 receiving the Disability Support Pension, according to the report.

“We also know that approximately 250,000 people receiving the Aged Pension rent their homes.”