New study underlines extent of housing crisis

The latest Anglicare Rental Affordability Snapshot has again highlighted Australia’s housing crisis, which has dominated the federal election campaign.

The snapshot also found:

• 165 rentals (0.3 per cent) were affordable for a person on the Age Pension
  
  
• 28 rentals (0.1 per cent) were affordable for a person on the Disability Support Pension
  
  
• just three rentals – all rooms in share houses – were affordable for a person on JobSeeker.

There were no rentals affordable for a person on Youth Allowance.

Of the 20 least affordable electorates across the nation, 14 are in NSW.

The survey results prompted Anglicare executive director Kasy Chambers to once again call on all political parties to act on housing affordability.

“Australia’s housing crisis is the worst it has ever been,” said Chambers.

“We keep hearing that this election is about living costs, but housing is the biggest cost facing Australians.”

The ALP and the Coalition have both made housing a central plank of their bid to woo voters in the federal election campaign.

Both Prime Minister Anthony Albanese and Opposition leader Peter Dutton rolled out major housing announcements at their campaign launches.

The reaction to their initiatives was mixed, however, with both leaders forced to defend themselves against criticism their efforts could make the housing crisis worse.

Both parties have promised to expand the Home Guarantee Scheme, while Labor has announced plans to invest $10 billion to increase the nation’s housing supply.

Sector organisations were underwhelmed by the Coalition’s policy to make mortgage interest tax-deductible for first home buyers purchasing new homes, with ACOSS CEO Sandra Goldie concerned the initiative would inflate home prices, increase household debt and worsen inequality.

Chambers said the housing crisis was climbing the income ladder, and that people on the lowest incomes didn’t stand a chance.

“Less than one per cent of rentals are affordable for a full-time worker on the minimum wage. Across the country, there are 74 electorates without a single affordable rental for someone on the minimum wage.

“For a person out of work it’s even grimmer. Out of 51,000 listings across the country, just three were affordable for someone on JobSeeker.”

Chambers said voters were desperate for action, but instead, political parties were promising more of the same.

“At best they are overlooking those who need the most help, and at worst, they are making promises that could overheat the market and push costs up.”

Chambers said that the government must step up instead of leaving housing to the private sector.

“The government spends eight times as much propping up private investors as it does on building homes for people who need them,” she said.

“This approach is wrong, and it’s supercharging rents and house prices.”

Chambers said the findings of the Rental Affordability Snapshot showed housing couldn't be left to the private sector.

“We're calling on the next parliament to ensure that rentals are affordable by building rentals people can afford, and by fixing Australia’s unfair tax system.

“Instead of spending billions on tax breaks for investors, the government should be building the housing we need.

“If the next parliament fails to take action, this crisis will only get worse.”

More information

Politicians respond to sector calls to tackle housing crisis