Australia’s rental crisis has reached new heights with tenants on a full-time minimum wage only able to afford less than one per cent of the listings on offer.
It’s the worst result recorded by Anglicare Australia’s annual rental affordability snapshot, which this year examined nearly 46,000 listings across the country.
The findings were “beyond shocking”, Anglicare Australia executive director Kasy Chambers said.
“Every year we think it can’t get worse and every year it does.
“Where we’ve really seen a drop this year is for someone on a minimum wage, so the rental crisis is actually climbing the income ladder.”
For most people on low incomes, rent needs to be no more than 30 per cent of household income to avoid financial stress.
In line with this benchmark, just 0.8 per cent of rentals were affordable for a person earning a full-time minimum wage and less than 0.5 per cent are affordable for people on the age or disability pensions.
The survey found no rentals were affordable for people on Youth Allowance and a single parent on welfare payments have to compete for a bare 0.1 per cent of affordable listings on the market.
National housing campaign Everybody’s Home said the Anglicare survey painted the bleakest picture of rental affordability yet.
With the cost of rent, petrol, food and electricity going up many Australians are at breaking point, spokesperson Kate Colvin said.
“Every day the government delays delivering the investment needed to significantly grow low cost rental housing, the longer the rental crisis will continue,” she said.
Housing will be on the agenda when Prime Minister Anthony Albanese meets state and territory leaders for national cabinet on Friday.
Mr Albanese said solving the issues of housing affordability and supply required co-operation between state and federal governments.
The talks are expected to inform new measures in the upcoming federal budget, which will be handed down on May 9.
Greens senator Nick McKim said Mr Albanese and his state counterparty needed to act swiftly.
The Greens are pushing for a two-year rent freeze to help people with the rising cost of living.
“It’s not good enough for the prime minister to have plans that will address a pitifully small part of the problem in a year’s time,” Senator McKim said in Hobart.
“People are living in crisis now and they need help now.”
Finance Minister Katy Gallagher said Labor acknowledged the huge pressure on renters, but she wouldn’t be drawn on whether the budget would provide relief.
A separate report by the REA Group and PropTrack found the national rental market was extremely tight in the first quarter of 2023.
In March, rental listings were sitting at historic lows in the combined capital cities.
Surging demand led to the number of inquiries about real estate listings jumping by more than eight per cent, the report found.
The lack of stock meant properties were leased quickly and landlords had the opportunity to increase rents.
Nationally, the median advertised rent was $500 per week – an increase of more than 11 per cent over the previous 12 months.
However, the report also found rental pressures were easing in regional Australia.
Regional housing supply had increased and demand was moderating from the record highs seen during the pandemic.
Report author Cameron Kusher said the biggest strain on the market was the lack of new rental supply.
“(Without) a return of investors to the market or a big increase in first-home buyer numbers, it seems unlikely that the strong demand and insufficient rental supply will be rectified any time soon,” he said.
© AAP 2023
