Retired renters are facing a crisis, with support groups warning a growing number are being forced to return to work as government programs fall short.
Victoria is sitting on a retirement time bomb with the number of homeless aged over 75 set to surge as the nation’s “broken” rental assistance solutions fail them.
The Retirement Living Council has warned rental stress has more than doubled for those aged 75 and up, from 2013 to 2025 — a time in which the population for that age demographic grew 59 per cent.
In Victoria the number of people over 75 using Commonwealth Rental Assistance and still in rental stress has gone from 5400 in 2013 to 11,265 last year — a 109 per cent surge.
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According to the RLC’s analysis of Australian Institute of Health and Welfare data, a further 24,940 would be in rental stress if they weren’t receiving government rental support.
It comes amid projections that the state’s biggest population increases, between now and 2046, for people aged 65 will be centred on some of Melbourne’s most affordable housing and rental markets.
With almost 8500 more people to be retirement aged living in Sunbury in the next twenty years, and upwards of 5500 in Beveridge, Donnybrook, Preston, Werribee and Clyde, there are concerns growing demand for rental homes will increasingly leave older tenants facing choices between paying their landlord and buying food and vital medications.
Melbourne’s Future Retiree Population Hotspots
| Suburb | Population today | Population 2046 | Increase |
| Sunbury | 7,179 | 15,656 | 8,477 |
| Clyde (Vic.) | 1,889 | 7,755 | 5,866 |
| Werribee | 7,252 | 13,727 | 6,475 |
| Preston (Vic.) | 5,310 | 11,279 | 5,969 |
| Donnybrook (Vic.) | 1,069 | 6,637 | 5,568 |
| Beveridge | 800 | 6,804 | 6,004 |
| Footscray | 2,878 | 7,827 | 4,950 |
| Traralgon | 6,457 | 11,011 | 4,554 |
| Warragul | 5,153 | 9,908 | 4,755 |
| Berwick | 8,161 | 12,350 | 4,189 |
Source: Informed Decisions
This two-bedroom unit in Sunbury currently costs $420 a week for renters, there are concerns that could be much higher when the suburb’s population of residents aged 65-plus has topped 15,000 by 2046.
At present, the aged pension for Australians tops out at just under $590 for a single-person household. Commonwealth Rent Assistance is worth 75 cents in the dollar above a minimum threshold, at least $152 a week for a single — which would lead to a bit more than $107 a week in rental support.
RLC executive director Daniel Gannon said their analysis of AIHW data showed the nation’s rental assistance program was “broken, outdated and miles behind reality”.
“Every delay is pushing more older Australians towards homelessness,” Mr Gannon said.
“This data reveals a deepening crisis in suburban Australia, where rental stress and housing shortages are colliding with an escalating care challenge for older Australians.”
Housing for the Aged Action Group spokesperson Fiona York said their services were seeing rising scenarios where older Australians could not afford retirement and were having to go back to work in order to pay their rent.
“And if they don’t, they are struggling to make ends meet and choosing between food and medication and rent … or they can’t afford to go anywhere and are becoming socially isolated,” Ms York said.
The Retirement Living Council’s Daniel Gannon believes changes are needed to protect older Australians in the rental market.
Housing for the Aged Action Group spokesperson Fiona York has warned many retired renters are spending more than 60 per cent of their income on their accommodation.
She added there were also secondary issues emerging with many retired tenants feeling they were being discriminated against by landlords who preferred working couples in the private rental market.
“A notice to vacate comes with high risk that they are going to become homeless,” Ms York said.
A household is considered to be in rental stress if they are spending 30 per cent of their income on paying the lease.
Ms York said many aged tenants were going through 60-90 per cent of their income to keep a roof over their head.
With compulsory superannuation payments not made law until 1992, many retirees have limited funds beyond the pension — which is being outpaced by the rising cost of living.
“Commonwealth Rental Assistance is not keeping up at all,” Ms York said.
How much Commonwealth Rental Assistance rent assistance tenants receive depends on an individual’s or couple’s circumstances, but generally varies from $143.60 to $215.40 fortnightly for those without dependent children.
This two-bedroom Werribee unit will set you back $400 a week. The aged pension for a single person tops out at just under $590 a week.
At $470 a week, 1/12 Dunnell Rise, Berwick, would leave a pension-funded retiree with $120 a week for bills, food, medication and any other expenses — or just under $230 a week if they receive CRA.
Tenants Victoria chief executive Jennifer Beveridge said finding affordable rentals once retired was often “incredibly difficult”.
“We’re hearing from older renters experiencing unprecedented rental increases their pensions simply can’t keep pace with,” Ms Beveridge said.
“Many are making impossible choices between paying rent, heating their homes, or affording medication. Some are being forced to move away from established support networks at a time when those connections matter most.”
“We simply don’t have enough social and affordable housing to meet the needs of our ageing population,” Ms Beveridge said.
Residents of Retirement Villages Victoria president Helen Betros said there were also a number of retirees being excluded from Commonwealth Rental Assistance by poorly considered government policies.
A growing number of retired renters are considering returning to work to cope with rental costs.
While those who buy into a land lease retirement village have to pay service fees (effectively rent for the land their home is located on), they can only currently claim CRA if they paid $258,000 or less for their home — a rarity.
“We’re a demographic of retirees where our funds are depleting and our costs are exploding,” Ms Betros said.
She said the government needed to review this arrangement, and undertake a wider look at retirement in Victoria to identify areas of disadvantage that would be impacting peoples’ retirements.
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