Rents skyrocket as housing bubble locks people out

November 16, 2021
Issue 
Home ownership among those aged 25鈥34 has dropped from 52% to 37% in the past 20 years. Photo: Pixabay

With some of the highest property prices in the world, young people living in Australia鈥檚 major cities are struggling to afford skyrocketing rents.

Despite an initial drop when the COVID-19 pandemic hit, rents have risen considerably across the country, increasing 8.3% just this year 鈥 the fastest growth since 2008.

Home ownership is not an option for many, especially as median house prices are now close to $1 million. Most young people are unable to save up for a deposit while paying a significant proportion of their income on expensive rents.

Without a high-paying job, or the luck of being born into a wealthy family, millions will be renting for their entire lives.

According to the Australian Bureau of Statistics Survey of Income and Housing, home ownership among those aged 25鈥34 has dropped from 52% to 37% in the past 20 years.

Renters face issues beyond the lack of housing affordability; they include the lack of stability and the prospect of continually moving house; few rights as tenants; and housing conditions that range from inconvenient to unsafe.

Rebecca Bentley, director of the Centre of Research Excellence in Healthy Housing, told the听ABC听on October 22 that as many 1 million people live in housing that harms their health. Poor insulation, damp and mould impacts respiratory health, mental health and raises rates of cardiovascular disease, she said.

The COVID-19 pandemic has shown the importance of public health yet so many people live in housing that damages their health.

Housing also has significant effects on climate, with 40% of household power consumption going towards heating and cooling. Many rental properties have very poor insulation and tenants are forced to suffer through the extreme heat of summer and cold nights in winter.

础苍听, using data collected over 27 years and published in 2015, showed Australia has a higher death rate due to cold weather compared to Sweden, almost entirely due to poor quality housing.

Australia leads the world in installing rooftop solar power, which is expected to听听by 2025. The lack of federal and state leadership on installing renewable energy systems means it has been left to the private sector. Renters who would prefer to move away from fossil fuel energy for their cooking and heating are often stuck paying for inefficient appliances and run-down electricity and plumbing systems.

While different states have their own tenancy legislation, they听overwhelmingly favour landlords and investors over renters.

Tenants鈥 organisations are fighting for better conditions for renters and have won some reforms such as听 and domestic violence protections. However, these changes can be watered down by governments under pressure from the real estate lobby.

听in Queensland include the removal of 鈥渆viction without grounds鈥. However, Tenants Queensland and the Tenants鈥 Union of New South Wales said that, in practice, landlords will use fixed-term agreements and other loopholes to evict people. The work of these organisations, and other tenancy and public housing collectives, is vital.

Private rents need to be capped at current levels for ten years,听and tenants need to have more rights to allow for a safe and ecological home. Tax breaks and concessions that keep house prices high need to be scrapped and, crucially, governments must invest in sustainable public housing to ensure disadvantaged and young people are not locked out of secure housing.

Grassroots pressure is needed to force governments to make housing affordable and to support on-the-ground initiatives led by people who believe that housing is a right.

麻豆传媒听will continue to campaign for public housing and renters鈥 rights and publicise the movements pushing these rights.

If you want to contribute to this people-powered media project please make a donation or become a supporter today.

You need 麻豆传媒, and we need you!

麻豆传媒 is funded by contributions from readers and supporters. Help us reach our funding target.

Make a One-off Donation or choose from one of our Monthly Donation options.

Become a supporter to get the digital edition for $5 per month or the print edition for $10 per month. One-time payment options are available.

You can also call 1800 634 206 to make a donation or to become a supporter. Thank you.