(Reuters) – CAMPBELLTOWN, Australia, December 19 Over the last 12 months, Belinda has submitted applications for over a hundred different rental properties, all of which have been declined.
Campbelltown, southwest of Sydney, is now housing the 39-year-old Australian single mother of four. She has six months to find a place to live that costs less than A$500 ($340) a week, or she will be forced to sleep on the streets.
“Next steps? I have no idea. I have a lot of furniture that I’m reluctant to get rid of. Neither my cat nor my dog is a member of my family, and I have no intention of ever giving them up, “said Belinda. It is very unsettling.
What was already one of the world’s least affordable rental markets has been further exacerbated in recent years by relentlessly increasing rents, eight straight interest rate rises, skyrocketing living expenses, and severe natural catastrophes.
According to SGS Economics and Planning’s Rental Affordability Index, the cost of renting in every state capital city has increased since last year.
According to yet another survey, the not-for-profit welfare organization Anglicare found that just 0.1% of rentals in Australia were affordable for couples without jobs and single parents receiving government help.
Since salaries have not increased to keep up with rising rents, a worker earning the minimum wage is in a precarious financial position. According to property consultant Savills, Sydney’s rental market is in the top 10 most expensive in the world, ahead of places like Miami and Paris.
This year, Sydney was listed as the world’s second-least affordable market by Demographia’s International Housing Affordability Survey, behind only Hong Kong.
Maria, 46, is a participant in the Dignity housing program in Campbelltown, and she explains that she cannot buy a property on her own since she only has one income source.
As a result of rising home prices, a record number of individuals are now renting since they can no longer afford to purchase. However, the rental supply is at a 20-year low.
According to Cameron Kusher, Director of Economic Research at Data business PropTrack, “we have observed increasingly at the bottom end of the market, those on lower incomes, the availability of rental property accessible to them is falling fairly considerably. Therefore this might have spillover effects on homelessness.”
TRYING TO FIND ANSWERS
Landlords often cite inflation as the reason for rent increases.
Debra Beck-Mewing, Strategic Buyers Agent and Vice President of the Property Owners Association of New South Wales, cited increasing mortgage rates, growing maintenance expenses, and other associated expenditures, including strata fees and council fees, as examples of cost constraints facing property owners.
After many landlords lowered rates during COVID, Beck-Mewing said rents were on the upswing and would likely continue to rise in 2023 due to rising rental demand after an over 30% increase in immigration permits.
“The government’s continuing efforts to discourage investment have resulted in a severe shortage of rental housing. Furthermore, the rental crisis is expected to worsen due to the increasing migration trend, “commented Beck-Mewing.
The supply of public and private affordable housing has also fallen short.
According to the latest data from the Australian Institute of Health and Welfare (AIHW), there were 440,200 social housing properties throughout the country as of June 2021, representing a growth of less than 1% over a year. Those looking for affordable homes now face up to ten years of wait periods.
Prime Minister Anthony Albanese has committed to addressing the issue. In October, he unveiled a national housing agreement that would provide A$350 million to fund the development of 10,000 low-cost dwellings.
Although some pension funds and experts are skeptical, the government has invited the A$3.3 trillion pension fund sector to assist in the construction of affordable housing.
Homelessness New South Wales’ Trina Jones remarked that for the initiative to be effective, dwellings must be typical of social and affordable housing rather than built with profit in mind.
Jones stated, “We know families are sleeping in tents and vehicles, and we know there are apprentices who cannot continue their apprenticeships due to homelessness.”
To guarantee that persons experiencing homelessness do not return to that situation, “we must invest in that safety net and give assistance for the people to make sure their experience of homelessness is short and non-recurring.”
