Growing affordability crisis is pushing many into financial hardship, says advocacy group
Renters in Australia’s capital cities are paying nearly $15,000 more annually for houses since the start of the pandemic, according to new analysis.
Data from SQM Research, analysed by the advocacy group Everybody’s Home, shows that renters in capital cities are spending an additional $14,700 per year on houses and $9,600 more annually on units compared to January 2020. The sharp rise in rental costs coincides with the onset of the COVID-19 pandemic, which has contributed to a housing affordability crisis across the country.
Sydney and Perth have experienced the largest increases in both house and unit rents, with annual rises well above the capital city average. Adelaide and Brisbane have also seen significant jumps in unit rents.
Maiy Azize (pictured above), Everybody’s Home spokesperson, said the cost of housing has become the biggest living expense for most Australians, forcing many into financial hardship.
“The steep rise in rents is pushing more people into severe housing stress and homelessness,” she said. “People are sacrificing essentials to afford rent, living in unhealthy conditions, and delaying important life decisions due to housing insecurity.”
The report was released at the start of Anti-Poverty Week, running from October 13 to 19, with the group urging the government to address the housing crisis. Everybody’s Home is calling for increased investment in social housing to address a national shortfall of 640,000 homes, a number expected to approach one million within two decades.
The advocacy group is also pushing for the elimination of tax breaks for property investors, which they argue have driven up housing costs. Azize said many Australians support reforms to investor tax policies, citing reports that the Labor Party may be open to change ahead of the upcoming election.
“Poverty is a policy choice; unaffordable housing is a policy choice,” she said. “The federal government has the power to make Australia a fair and affordable place to live. It’s time for action to address this deep and prolonged crisis.”
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