Australia is facing calls for a “war on homelessness” in order to get both sides of politics on board to do what is needed to fix its housing crisis.
Australia’s rental crisis has become so dire industry groups are calling for a “war on homelessness” as cops, teachers and nurses are squeezed out of some areas entirely.
Almost every state’s regional areas have just hit their worst level for affordability on record, and most capital cities are barely above bottom, and it is now starting to hurt the nation’s economy as businesses struggle to attract workers in some areas.
The latest National Shelter-SGS Economics and Planning Rental Affordability Index released today has also warned while there are green shoots emerging, particularly a growing political response to the crisis, it’s still not clear if renters will face further pain before things improve.
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The Index showed affordability improved by one percentage point in Sydney, and four in Canberra. It was steady in Melbourne and Adelaide, but declined by two percentage points in Brisbane and fell four in Perth.
But areas outside of state capitals sank to a new low everywhere except for South Australia.
SGS Economics & Planning principal Ellen Witte said affordability stabilising in many urban areas after “rapid declines” since 2021 had largely been because “renters are reaching their limit and are unable to pay more” and tenants were still “in a bad way”.
“Regional Australia on the other hand continues to see unaffordability spread to increasingly remote places,” Ms Witte said.
SGS Economics and Planning in delivering the Rental Affordability Index Melbourne graphic – for herald sun real estate
SGS Economics and Planning in delivering the Rental Affordability Index Adelaide graphic – for herald sun real estate
The worsening conditions in regional and remote areas were likely in part being caused by workers formerly residing in capital cities relocating as they sought out more affordable housing in the work from home era.
“Regional cities like Bendigo and Ballarat, in Victoria, and Orange and Bathurst, in NSW, have all become much less affordable,” she said.
“And the economy is starting to be hurt by this. Businesses can’t find workers, and they can’t work at 100 per cent capacity when they can’t get workers there.”
Ms Witte noted that the only area to see a meaningful improvement in the rental crisis was the ACT, where government intervention meant landlords could no longer increase rents more than 110 per cent of the consumer price index unless they sought special permission.
Instead of supporting those who could afford to buy investment properties or homes to purchase established residences, Ms Witte said she would prefer to see more emphasis on programs that would lead to further housing construction.
SGS Economics and Planning in delivering the Rental Affordability Index Sydney graphic – for herald sun real estate
SGS Economics and Planning in delivering the Rental Affordability Index Brisbane graphic – for herald sun real estate
National Shelter Chair John Engeler said while he was encouraged by some “green shoots” emerging as governments made announcements such as a new round of Housing Australia Future Fund to support affordable housing for key workers.
However, Mr Engeler said the reality was many renters were at their limit and struggling to find affordable alternatives.
“People will say they can afford it this week, but if the rent increases 10 per cent, they won’t have anywhere to go because the vacancy rate is so low,” he said.
Housing All Australians founder Robert Pradolin said the nation needed to “declare war on homelessness” as without a unified response from all sides of politics the nation would watch the situation grow worse, and businesses would have to follow in the footsteps of Amazon, Facebook and the like which were now spending vast sums on providing workers with homes.
“We already do have problems with getting enough police, nurses and teachers in some areas because of the cost of housing,” he said.
“It has been a social issue, and that isn’t necessarily top of mind, but this is now becoming a fundamental business problem.”
SGS Economics’ Ellen Witte says the nation’s regional areas are experiencing the worst affordability on record.
Robert Pradolin, founder of Housing All Australians Limited, says the nation needs a war footing against a housing and homelessness crisis.
In the absence of a national approach backed by all sides of politics, Mr Pradolin said Australia risked following in the steps of the US — and was as little as 25 years away from the superpower’s horrifying homelessness situation.
While he said Housing Australia Future Fund efforts to build 13,000 more homes was a positive, the nation had a 44,500 social homes deficit and ways to encourage the private sector were needed.
Housing All Australians is a national organisation that seeks to find business solutions to the nation’s housing crisis.
Among its programs is a Progressive Residential Affordability Development Solution (PRADS) that would give developers preferential outcomes in return for offering more affordable housing in projects to host cops, teachers, nurses and other key workers.
“It’s all about supply, that’s economics 101, so the only hand out should be subsidising rentals to get key workers near where they work,” Mr Pradolin said.
SGS Economics and Planning in delivering the Rental Affordability Index – capital cities relative affordability – for herald sun real estate
SGS Economics and Planning in delivering the Rental Affordability Index key rental groups assessed – for herald sun real estate
The scheme would also lead to a national register of affordable housing spaces that could be searched by key workers, as opposed to the current situation where they had to approach existing housing support groups in their area.
The RAI report also assessed the capacity of specific rental groups to cover the cost of keeping a roof over their head and found many of those such as hospitality workers, single-parents and pensioners would now face rental stress if they wanted a home in every capital city.
Only those with dual incomes could find an affordable rental anywhere in any city, though some areas would be beyond most of them.
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