RAI Report Released: Hobart and Sydney Most Expensive in Australia for Renters
The Rental Affordability Index was released last week by SGS Economics and Planning, National Shelter, Community Sector Banking, and the Brotherhood of St Lawrence. The Biannual report makes for quite depressing reading for the one third of Australians currently renting. Highlights include:
- Sydney and Hobart being the most un-affordable capital cities for low-income renters
- There is a need for over 400,000 low-cost housing in Australia, with another 300,000 required by 2036
- Currently in Sydney, 27% of all income of rental houses goes to rent, meaning essentials such as food, hating and transport are often neglected.
Ellen Witte, from SGS Economics and Planning, explains that this is primarily due to shifts in policy in the late 80’s/early 90’s, after changes to Capital Gains and Reverse Gearing invited investors to enter the housing market.
Karen Walsh, from Shelter NSW, is demanding that State and Federal bodies of government pool their resources and begin addressing the ‘Rent Affordability Crisis’ as the crisis that it is for public policy.
Both Ms Witte and Ms Walsh suggest practical solutions to bring the gap between ‘market’ and ‘affordable’ rents down, but acknowledge it requires government to do their part in order to provide low-cost housing for Australians who need it.