Claudia Byatt
Real Estate

Those copping the brunt of Australia's rental crisis

The rental crisis has put essential workers in a chokehold, with aged care, childcare, hospitality, postal and freight workers being hit the hardest.

The essential workers are being priced out of the rental market across Australia with the average employee having to fork out around two thirds of their income on housing.

As of March 2020, employees on award wages have lost an average of six hours from their weekly income to rent increases, according to a report by Anglicare Australia’s Everybody’s Home campaign.

This weekly average equates to 37 days' worth of wages every year, but childcare, hospitality and meat packaging workers are reportedly losing at least 40 days' worth.

The report found nurses, cleaners, aged care and postal workers were among those who are struggling the most with rental costs.

Findings also saw rising rental prices meant essential workers in single households were more inclined to endure financial stress, while those in coupled homes were likely financially dependent on their partner’s income.

Based on the average cost of rentals in capital cities of Australia, the report saw full-time workers on the lowest award wage would be left with around $20 a day after covering rent.

It was reported that meat packers and hospitality staff in capital cities are forced to spend more than 80 per cent of their wages on rent alone.

Queensland has become one of the least affordable states for renters with even the highest paid essential workers forced to spend at least half of their earnings to cover rent.

NSW and Victoria found there were no affordable regions for essential workers earning award wages.

A spokesperson for Anglicare, Maiy Azize, said workers in essential industries were the backbone of Aussie communities, but have been continuously pushed into significant rental stress.

"Virtually no region in Australia is affordable for our aged care workers, early childhood carers, cleaners, nurses and many other essential workers we rely on," she said.

"Our tax system is rigged against renters, driving up the cost of rent for millions of Australians and on top of that (there is) a huge shortfall of social homes for people who can't afford rent."

Image credit: Getty

Tags:
Rental crisis, Cost of living, Essential workers