Young tenants have slammed Sydney’s rental system saying it isn’t designed to support long-term renters, who are now losing hope of becoming homeowners – and are leaving Sydney all together.
Sydney renters without intergenerational wealth feel exiting the rental market is becoming a pipe dream, as renting is costing tenants a larger percentage of household salaries.
Yatha Jain, rents in a share house in Newtown where her and her housemates pay an already lofty $1250 a week in rent.
Renters Eisha Farrukh (left) and Yatha Jain have recently had a hit with rent rise. Picture: Justin Lloyd.
They have just been hit with a price increase.
“Its added pressure, which with the cost of living, I was already under pressure,” she said.
“The trend I see is people in our age bracket moving away or just not being able to buy at all.”
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Reports show first home buyers are increasingly relying on the bank of mum and dad or other family inheritance for a down payment for a house.
Recent figures show advertised rental prices and stock have eased, yet prices still remain extremely elevated.
Ms Jain said despite having the stability of full-time work, Sydney’s rental system was particularly hard for people who couldn’t rely on family assistance.
“The current system isn’t designed for someone like me to be able to rent long term and have the financial means to buy a property,” she said.
“I am a migrant and have a migrant background, and like a lot of people with my background, I don’t have intergenerational wealth to rely on.
“It’s really disappointing it makes me alongside a lot of young people move away form Sydney where we could perhaps look at owning property or having a more stable rental market,” she added.
Yatha Jain (right) pictured with one of her housemates Eisha Farrukh. Ms Jain says there needs to be more reform that empowers renters. Picture: Justin Lloyd.
Ms Jain and her housemates were currently researching the market to negotiate their price increase.
“The onus right now falls on the renter to negotiate those increases because there are no limits or caps,” she said.
“We need reform that empowers renters and limits the percentage rentals can increase that landlords can implement.”
No grounds evictions were set to be implemented in NSW, which Ms Jain said was a positive step forward.
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Rents fall at fastest rate since Covid hit
As chair of Prosper Project Australia, a non-for-profit that works to support disadvantaged children and families, Ms Jain’s concerns for the rental market extended to others in more extenuating circumstances.
“We need more supply of affordable housing and building more public housing so people aren’t having to wait such long time to access safe housing.
“There is a link between other issues like domestic violence … elderly women have the highest percentage increase of homeless people. What are we doing to help people and making sure they have somewhere to live?”
Sarah Elkordi, ‘The Rent Fairy’ helps renters secure tenancy in the challenging Sydney rental market.
She said before Covid, rents would raise $10 or $20. In the last two years, increases have been closer to $50, $100 or more.
“A single person going for a one bedroom is now unrealistic if its one income – they’re pushed out to what they can achieve.
“Sometimes it’s a hard conversation to have (with clients), especially if they have kids and they’re in schools, sports and daycares. We have to look at what they can afford.
Sarah Elkordi, aka the Rent Fairy.
“The competition … single parents are against two income households, professionals are against people on government benefits … all types of economic-status are now competing for the same price and property.
She said what was happening in the rental market was “heartbreaking.”
“I’m trying to give back to those who need help but you’re limited because I don’t have a choice over whether landlords take care of their properties and who they put in their property.”
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