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Stay or go? Most older Australians want to retire where they are, but renters don’t always get a choice

<a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/william-clark-1488932">William Clark</a>, <a href="https://theconversation.com/institutions/university-of-california-los-angeles-1301">University of California, Los Angeles</a> As Australia’s population gets older, more people are confronted with a choice: retire where they are or seek new horizons elsewhere. Choosing to grow old in your existing home or neighbourhood is known as “ageing in place”. It enables older people to stay connected to their community and maintain familiarity with their surroundings. For many, the decision to “age in place” will be tied to their connection to the family home. But for many, secure and affordable housing is increasingly <a href="https://theconversation.com/ageing-in-a-housing-crisis-growing-numbers-of-older-australians-are-facing-a-bleak-future-209237">beyond reach</a>. This choice may then be impeded by a lack of suitable accommodation in their current or desired neighbourhoods. Our recently published <a href="https://doi.org/10.1177/01640275231209683">study</a> asks what motivates older homeowners and renters to age in place or relocate, and what factors disrupt these preferences. It suggests older renters are often not given a fair choice. <h2>Most older Australians want to age in place</h2> Having the option to age in place enables older people to retain autonomy over their lifestyles and identity, promoting emotional wellbeing. Using 20 years of data from the government-funded Household, Income and Labour Dynamics in Australia (HILDA) survey, we tracked the preferences of Australians aged 55 and over. Encouragingly, most older Australians are already where they want to be. Two-thirds (67%) of respondents strongly preferred to stay in their current neighbourhood, and an additional one-fifth (19%) had a moderate preference to stay. Only 6% showed a moderate or strong desire to leave. Ageing in place is then the natural choice for a vast majority of older Australians. <iframe id="s3LTM" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/s3LTM/1/" width="100%" height="400px" frameborder="0"></iframe> Our study highlights several motivations for people to stay put as they retire. For homeowners, family ties matter. Owners with children residing nearby were around one and a half times more likely to have a higher preference to stay. Older owners might then have a reason to call on their substantial <a href="https://theconversation.com/the-housing-wealth-gap-between-older-and-younger-australians-has-widened-alarmingly-in-the-past-30-years-heres-why-197027">housing wealth</a> and keep their children nearby via the <a href="https://360info.org/how-to-help-the-young-buy-a-home/">“bank of mum and dad”</a>. For renters, how long they stay is important. Those renting their home for 10 years or more were 1.7 times more likely to have a higher preference to stay than short-term renters. <h2>Renters face the most disruption</h2> The survey enabled us to follow where older people lived a year after they provided their preferences. This helped us gauge how often they turned their desires into reality. The chart below indicates that private renters face greater obstacles to ageing in place. Around one in 10 private renters that desired to age in place were disrupted – they wanted to stay in their neighbourhood but didn’t. This suggests they moved out of their neighbourhood involuntarily. Only 2% of homeowners and social renters experienced the same disruption. However, for those in these tenures that did not desire to age in place, involuntary immobility was a greater concern. Only 15% of those that wanted to leave succeeded, leaving the vast majority “stuck in place”. <iframe id="IlliV" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/IlliV/1/" width="100%" height="400px" frameborder="0"></iframe> The private rental market is the least secure of tenures, and so private tenants are often exposed to involuntary moves. Australia’s private rental system is lightly regulated compared to many other countries, creating tenure insecurity concerns. On the other hand, social renters were particularly susceptible to involuntary immobility. Social housing is scarce in Australia and subject to <a href="https://theconversation.com/its-soul-destroying-how-people-on-a-housing-wait-list-of-175-000-describe-their-years-of-waiting-210705">lengthy waiting lists</a>. A neighbourhood move often requires transferring to the less affordable and less secure private rental housing. Even after considering financial status, social renters were four times as likely to be stuck as compared to private renters. Social tenants are strongly deterred from moving in the current system. <h2>How can we support older Australians’ preferences?</h2> Our study exposes some barriers in the housing system that hinder people from being able to age in place, or move when they want to. Clearly, older renters enjoy fewer protections against disruptions to their preferences to age in place than older owners. For private renters, tenure insecurity in the <a href="https://theconversation.com/insecure-renting-ages-you-faster-than-owning-a-home-unemployment-or-obesity-better-housing-policy-can-change-this-216364">private rental sector</a> is a key reform priority. This can be achieved through stronger regulation that improves tenants’ rights. For example, more states could adopt <a href="https://theconversation.com/how-5-key-tenancy-reforms-are-affecting-renters-and-landlords-around-australia-187779?utm_source=twitter&utm_medium=bylinetwitterbutton">recent regulatory rental reforms</a> that support the rights of pet owners and protect against no-grounds evictions. Large numbers of older private renters also face severe <a href="https://www.oldertenants.org.au/publications/ageing-in-a-housing-crisis-older-peoples-housing-insecurity-homelessness-in-australia">rental stress</a>, which may force them to move from their preferred neighbourhood. <a href="https://theconversation.com/1-billion-per-year-or-less-could-halve-rental-housing-stress-146397">Commonwealth rent assistance reform</a> would alleviate some of this stress through an increase in rates and better targeting. An increase in the supply of social housing would play an important role in improving both tenure security and housing affordability. Older social renters enjoy fewer obstacles to ageing in place than older private renters. However, if social renters want to move into the private rental market to relocate, they face difficulty securing accommodation. This will likely discourage moves as it would require sacrificing the tenure security offered by social housing. However, policy initiatives that improve the <a href="https://www.ahuri.edu.au/sites/default/files/migration/documents/PES-358-Lessons-from-public-housing-urban-renewal-evaluation.pdf">quality of the public housing stock</a> can reduce feelings of being stuck. As <a href="https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure">homeownership rates decline</a> both among young people and those nearing retirement, we can expect the population of older renters to grow. Overall, our findings support a strong case for policy reform in the rental sectors to address the needs and preferences of older renters.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/218024/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, Research Fellow, School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, ARC Future Fellow & Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/william-clark-1488932">William Clark</a>, Research Professor of Geography, <a href="https://theconversation.com/institutions/university-of-california-los-angeles-1301">University of California, Los Angeles</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/stay-or-go-most-older-australians-want-to-retire-where-they-are-but-renters-dont-always-get-a-choice-218024">original article</a>.

Retirement Income

Tenants forced to pay landlord after fleeing their “uninhabitable” rental

A family has been ordered to pay their former landlords $3,000 after they “abandoned” they “uninhabitable” rental property. Bechara Rizk and Ariye Atayi Juma claimed that the Sydney home was unlivable, given the unrelenting infestation of cockroaches and other bugs. When the couple moved into the home with their young daughter on April 29th 2023, they immediately noticed “tiny insects and small cockroaches” in the linen cupboard, living area, master bedroom, second bedroom and main bathroom. They said the house was completely inundated with insects, as they found them on the walls, doors, skirting boards, carpets and in the toilets. Rizk emailed the real estate agency saying he did not consider the property habitable — especially for his young daughter. “(We) went to the property an hour ago for the first time since we received the keys yesterday and there were tiny insects and cockroaches alive and dead in every room,” the email said. “I have taken some videos if you need to see evidence but, most importantly, we are not comfortable bringing a small baby who is crawling to live in this apartment.” “I am writing to formally pull out of the lease and wanting to understand what the repercussions are for us.” The real estate offered to arrange a pest control service, to which the couple turned down as they believed the problem was too far gone to be fixed easily. After returning the keys on May 1st, Rizk sent an email the next day requesting their bond and deposit be returned. A pest controller treated the home on May 3rd, recording that a “small amount of (insect) activity” had been located and treated. In a letter to Rizk and Juma the next day, the real estate agency said the pest controller had found “no evidence of a pest infestation in the property” and the couple’s claim the property was uninhabitable was without merit. Rizk replied, “We have pulled out of our lease not due to a change of mind, it is uninhabitable and simply not what we signed up for. “We cannot live in an insect-infested apartment with a young baby.” “As any parent should understand, our child is our first priority and at the very least it would be irresponsible and the most could potentially put her in harm.” The matter between the family and the landlord ended up in the NSW Civil and Administrative Tribunal, with the couple seeking repayment of their bond while the landlords asked for compensation for the couple’s “abandonment” of the lease. Tribunal member Ross Glover found that the couple did in fact abandon the property, and were ordered to pay their former landlord $3,000 in compensation. The amount was deducted from the couple's bond which left no remaining balance to be refunded to them. Image credits: Shutterstock

Money & Banking

Real estate agency slammed for "greedy" rental increase

Real estate agency Nelson Alexander has come under fire after increasing the weekly rent to one of their vacant properties on the day of the viewing. The property, located in the inner suburbs of Melbourne, had a scheduled viewing on Thursday and many hopeful tenants were keen to check it out. Unfortunately, their interest came at a cost, as the agency sent out a text just hours beforehand saying that they were increasing the weekly rent from $600 to $650 due to "overwhelming" demand. Journalist Jacqueline Felgate shared the text on social media, and many branded the agency's move as "greedy" and "disgraceful" and even accused them of perpetuating the rental crisis. The exact location of the property and the number of bedrooms it has is unknown, and after receiving all the backlash, the ad has since been pulled. The real estate agency also apologised and said that they "do not solicit or encourage any form of rental bidding". "Whilst the current issue at hand is not a breach of legislation, it fell short of our commitment to fair and transparent practices," the statement read. "We are deeply aware of the moral and social responsibility we have to our community during these challenging times." They also added that they are currently reviewing their processes to "ensure this doesn't ever happen again". It is unclear whether the property has been put back on the market and for what price. <em style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; color: #323338; font-family: Figtree, Roboto, 'Noto Sans Hebrew', 'Noto Kufi Arabic', 'Noto Sans JP', sans-serif; background-color: #ffffff; outline: none !important;">Images: Instagram

Money & Banking

"You are the problem": Landlord slammed over rent increase just before Christmas

An Australian landlord has been slammed online for deciding to raise the rent on one of her struggling tenants before Christmas. The landlord from WA took to social media to try to defend her decision to slap her tenant, who is a single mother, with a $100 rental increase at the start of the festive season. The woman, who owns four rental properties, explained that the increase comes from the growing market value in the suburb the tenant lives. "I decided to increase the rent by $100 a week for my tenant, who is a single mum with two kids, on the basis a reasonable rental increase would have been an extra $140 a week," she began in the video shared to her X account. "I recognise that she probably couldn't afford that. So I came to the conclusion that $100 would be a very good deal considering the suburb and it would be one of the cheaper rentals on the market." The tenant said that she is unable to afford the steep increase, especially in the weeks before Christmas, and would have to decide between affording her rent and feeding her young children. "So now I'm in a position. Do I subsidise the tenant's rent and cop it out of my own pocket... or do I tell this tenant she can't afford this particular suburb and she should look for somewhere more reasonable," the landlord said. "It's a really tough decision and one that I am not taking on lightly and just further evidence that this housing crisis is really impacting people financially." In the end, she decided to increase the tenant's rent. "I increased the tenant's rent by $100 per week after I did further research. The rent is still $30-$40 per under market value. Now I'm learning you can't mix emotions with business," she said. The landlord has been rinsed online, with many people calling out her callous actions in the festive season, dubbing her as "greedy" and contributing to nation's housing problem. "Jesus, I cannot imagine increasing a rent by $100 a week- that would ruin anyone, let alone a single mum. What are you thinking of? Have some ethics," one person said. "You and the real estate industry are the problem! Hiking the rent based on your real estate greed. If you recognise the social issues why do you add to the problem?" another person added. A third person chimed, "Is this satire? Surely you aren't this much of an awful human being." "I fully understand it's your property - however to increase rent just before Christmas is a little heartless and $100 a week increase is tall during a cost of living crisis," a fourth person said. Others jumped to defend the landlord, claiming owning rental property is a business and not a charity. One person commented, "Take the emotion out of it! It's an investment property not a charity! As harsh as that sounds it's the cost of being successful. But, perhaps leave it until after Christmas though as a goodwill gesture." Image credits: X / Instagram

Money & Banking

Women forced to do shocking act for $100 rent reduction

Two women in Queensland have claimed that they were forced to use a makeshift "temporary shower" outdoors, while renovations are being carried out in the property's only bathroom. The pair, who were expecting a porta-loo style shower to use during the four-to-six weeks renovation, were horrified when they found out the makeshift shower was just a blue tarpaulin attached to the side of the house. Electrical cords and plumbing pipes can be spotted hanging down in front of the open cubicle, and has no curtain for privacy or a lock, raising questions for their privacy and safety. To make matters worse, the women revealed on Facebook that they initially tried negotiating for a rental discount of $200 per week during the renovations, but their landlord said "no way" offering only a $50 discount, "then $100 as final offer". Dr Chris Martin, Senior Research Fellow in the University of NSW's City Futures Research Centre, slammed the landlord for "a bunch of possible breaches". "There is a big question about whether the temporary arrangement meets the minimum standards that apply to rented premises in Queensland under the Residential Tenancies and Rooming Accommodation Act," he told Yahoo News. "Those minimum standards include that the bathroom and toilet facilities must provide privacy and that a premise must be weatherproof and structurally sound, and there's a standard about security," he added. He also claimed that "there's a bunch of possible breaches of the minimum standards of this temporary arrangement," as intruders could also potentially get in. The Senior Research Fellow also slammed the $100-a-week reduction in rent, calling it "grossly insufficient". "What a professional landlord who takes a bit of pride in themselves as a reputable housing provider would have done, is hire one of those portable bathrooms that come on a little trailer with a little heater and hook it up, and also do a rent reduction for the hassle of having to trot out to the trailer to shower," he said. "That would be the appropriate response." He encouraged the tenants to speak to Tenants Queensland or a local tenants advice service about what to do, adding that they could say that the current temporary arrangements could be deemed "unlivable or uninhabitable". "I suggest they should also be telling the landlord that this arrangement may place the landlord in a further breach of the agreement and for the liability for an even bigger rent reduction and the prospect of compensation if they don't do this better," Dr Martin told the publication. Images: Facebook

Money & Banking

"Disgustingly sick": Family's horrifying find in rental home

A family of six have been forced to move out of their rental home after discovering it had disturbing levels of meth residue. The family became “disgustingly sick” after moving into the home located in Sandstone Point Queensland and were told to pay for toxicity testing and decontamination by their real estate agency. What the tests revealed shocked them, with dangerous levels of methamphetamine residue found in the lounge room, bedrooms, bathrooms and, worst of all, the space used as a toy room for their children. “(It was) basically everywhere,” Queensland mum Emily Thornton told 7News. She added that it was "disgusting" to know that her four kids played in that toxic environment. According to the Clandestine Drug Laboratory Remediation Guidelines, a safe level of meth residue is below 0.5 micrograms per 100 sq cm. Their house had 1.3 micrograms per 100 sq cm - which is reportedly enough to put people's lives at risk. The house was allegedly once used as a meth lab, and the family only got it tested for toxicity when a neighbour, who was suspicious of the previous tenants, flagged the possibility. Now, the family has been left homeless. “We’re not allowed in there,” Thornton said. “Basically, we’re starting from scratch — we’ve got nothing, absolutely nothing at all.” Thornton also added that her family first started feeling sick shortly after they moved in. “We moved in, (and) we lived here for a little while, (and then) everyone started getting sick,” she said. “We were told by the neighbours that they suspected something going on here, so we decided to contact a company to get them to come out and do some testing, and the testing came back positive for meth.” “They’ve told us just to get out, we’ve just taken what we’ve got and walked out the door.” On top of being homeless, the family had to pay $500 for the toxicity and decontamination testing as both the agent and landlord refused to help them pay to get the home tested. “They weren’t interested, and it was up to us to do it if we wanted to do it," Thorton said. 7News reported that the real estate agency will ensure that the property is decontaminated, but the family will still have to pay the cost of an emergency accommodation. “We just don’t know what we’re going to do. We don’t have the money to pay for it,” Thornton said. Australian Meth Alerts spokesperson David Pie said that Meth residue is a common problem that often gets ignored as the contamination is odourless and invisible to the human eye. “It is a well-known fact within the real estate industry with property managers that this is a real issue," he said. “It’s out of control … and it’s just getting ignored,” he added, “In the worst instances, it can cause death, in particular among young kids. But it creates anger and sleeping problems — it just goes on and on and on.” He also said that it was "wrong" for Thornton's family to pay out-of-pocket for the tests. Image: 7News

Caring

The rental housing crisis is hurting our most vulnerable and demands a range of solutions (but capping rents isn’t one of them)

<a href="https://theconversation.com/profiles/andrew-beer-111469">Andrew Beer</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> and <a href="https://theconversation.com/profiles/emma-baker-172081">Emma Baker</a>, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a> Roughly <a href="https://www.abs.gov.au/statistics/people/housing/housing-occupancy-and-costs/2019-20">one in three Australians</a> rent their homes. It’s Australia’s fastest-growing tenure, but renting is increasingly unaffordable. From 2020 to 2022, our <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4253168">research</a> found a large increase in the proportion of renters who said their housing was unaffordable. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=217&fit=crop&dpr=1 600w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=217&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=217&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=273&fit=crop&dpr=1 754w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=273&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=273&fit=crop&dpr=3 2262w" alt="horizontal bar chart showing changes in Australian renters' assessments of affordability form 2020 to 2022" /></a><figcaption>Change in Australian renters’ assessments of affordability from 2020 to 2022. Baker, Daniel, Beer, et al, forthcoming, The Australian Housing Conditions Dataset, doi:10.26193/SLCU9J, ADA Dataverse</figcaption></figure> Australians are concerned about the <a href="https://www.theguardian.com/australia-news/2023/jul/05/rents-rise-again-across-australia-with-sydney-seeing-fastest-rise-in-20-years">pace</a> of <a href="https://www.sbs.com.au/news/article/how-much-has-rent-increased-around-australia/8ljlnf0zm">rent rises</a>. Prime Minister Anthony Albanese <a href="https://www.pm.gov.au/media/national-cabinet-meeting">says</a> increasing housing supply and affordability is the “key priority” for tomorrow’s national cabinet meeting. The crisis has impacts well beyond affordability. The rental sector is where the worst housing accommodates the poorest Australians with the worst health. <h2>The unhealthy state of rental housing</h2> Forthcoming data from the <a href="https://dataverse.ada.edu.au/dataverse/ahcdi">Australian Housing Conditions Dataset</a> highlight some of these parallel challenges: <ul> <li> it’s often insecure – the average lease is less than 12 months, and less than a third of formal rental agreements extend beyond 12 months </li> <li> rental housing quality is often very poor – 45% of renters rate the condition of their dwelling as “average, poor, or very poor” </li> <li> poor housing conditions put the health of renters at risk – 43% report problems with damp or mould, and 35% have difficulty keeping their homes warm in winter or cool in summer </li> <li> compounding these health risks, people with poorer health are over-represented in the rental sector. Renters are almost twice as likely as mortgage holders to have poorer general health. </li> </ul> Measures that potentially restrict the supply of lower-cost rental housing – such as rent caps – will <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4253168">worsen these impacts</a>. More households will be left searching in a shrinking pool of affordable housing. <h2>It’s all about supply</h2> Fixing the rental crisis needs more than a single focus on private rental housing. The movement between households over time between renting and buying homes means the best solutions are those that boost the supply of affordable housing generally. No one policy can provide all the answers. Governments should be looking at multiple actions, including: <ul> <li> requiring local councils to adopt affordable housing strategies as well as mandating <a href="https://www.ahuri.edu.au/analysis/brief/understanding-inclusionary-zoning">inclusionary zoning</a>, which requires developments to include a proportion of affordable homes </li> <li> improving land supply through better forecasting at the national, state and local levels </li> <li> giving housing and planning ministers the power to deliver affordable housing targets by providing support for demonstration projects, subsidised land to social housing providers and access to surplus land </li> <li> boosting the recruitment and retention of skilled construction workers from both domestic and international sources. </li> </ul> <h2>The biggest landlord subsidy isn’t helping</h2> More than <a href="https://data.gov.au/data/dataset/taxation-statistics-2020-21/resource/ebbd32e3-4556-41e1-a8b9-33387457d518">1 million Australians</a> claim a net rent loss (negative gearing) each year. Even though negative gearing is focused on rental investment losses, it is not strictly a housing policy as it applies to many types of investment. The impact of negative gearing on the housing system is untargeted and largely uncontrolled. As a result, it’s driving outcomes that are sometimes at odds with the need to supply well-located affordable housing. The most impactful action the Australian government could take to deliver more affordable rental housing nationwide would involve refining negative-gearing arrangements to boost the supply of low-income rentals. These measures may involve <ul> <li>limiting negative gearing to dwellings less than ten years old</li> <li>introducing a low-income tax credit scheme similar to the one in the United States.</li> </ul> We can learn much from the US, where the Low-Income Housing Tax Credit (<a href="https://www.huduser.gov/portal/datasets/lihtc.html">LIHTC</a>) scheme subsidises the acquisition, construction and renovation of affordable rental housing for tenants on low to moderate incomes. Since the mid-1990s, the program has supported the construction or renovation of about 110,000 affordable rental units each year. That adds up to over <a href="https://www.taxpolicycenter.org/briefing-book/what-low-income-housing-tax-credit-and-how-does-it-work">2 million units</a> at an estimated annual cost of US$9billion (A$13.8billion). This scheme is much less expensive per unit of affordable housing delivered than Australia’s system of negative gearing. Closer to home, the previous National Rental Affordability Scheme showed the value of targeted financial incentives in encouraging affordable housing. This scheme, available to private and disproved investors, generated positive outcomes for tenants. The benefits included better health for low-income tenants who were able to moved into quality new housing. A <a href="https://cityfutures.ada.unsw.edu.au/documents/81/Next_moves_report.pdf">raft</a> of <a href="https://apo.org.au/node/260431">evaluations</a> have <a href="https://www.ahuri.edu.au/research/final-reports/267">demonstrated</a> the achievements of this scheme. <h2>Crisis calls for lasting solutions</h2> Short-term measures such as rent caps or eviction bans will not provide a solution in the near future or even the medium or long term. Instead, these are likely to worsen both the housing costs and health of low-income tenants. Reform focused on ongoing needs is called for. Solutions that can be implemented quickly include the tighter targeting of negative gearing and the introduction of a low-income housing tax credit. Talking about change, as the national cabinet is doing, will begin that process of transformation, but it must be backed up by a range of measures to boost the supply of affordable housing. This, in turn, will improve the housing market overall as affordable options become more widely available.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/211275/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/andrew-beer-111469">Andrew Beer</a>, Executive Dean, UniSA Business, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> and <a href="https://theconversation.com/profiles/emma-baker-172081">Emma Baker</a>, Professor of Housing Research, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-rental-housing-crisis-is-hurting-our-most-vulnerable-and-demands-a-range-of-solutions-but-capping-rents-isnt-one-of-them-211275">original article</a>.

Real Estate

Nat Barr’s emotional plea for young family

Sunrise host Natalie Barr has issued an emotional plea after one family’s heartbreaking situation moved her close to tears. Adelaide-based dad Taylor Hosking shared his moving story on Sunrise, revealing the devastating impact of the rental crisis on his young family, who may be forced to live on the streets after more than 50 unsuccessful rental applications. Hosking - who has four children and a fifth on the way - shared that his family were pushed to look for a new home after their rent was increased from $430 to $600 a week. “We’re like at that point now it’s like, what do we do?” Hosking told Barr. “It’s either we feed the kids or we pay our rent or we pay the rent and we, you know, we can’t even feed the kids.” He explained that the young family often gets judged “straight off the bat” for having “a bunch of kids”, and despite having good references, they’ve had no luck in finding a new home. Barr noted that it must be a “ very emotional time” for them and asked how he and his wife, Shay, were coping. Hosking opened up about his tragic loss, which almost moved Barr to tears. “It’s a very special day as well today because our son Orlando passed away on Father’s Day last year,” he said. “So if he was still here with us, he’d be one today. But we just go day by day and the kids are what keeps us strong and all together, mate.” The family had worn a “Team Orlando” shirt for the segment, which tugged on Barr’s heartstrings. “This is just the face of the cost of living crisis in this country,” she said, holding back tears. “We are here to help, we are going to do everything we can to help you and your family.” She then asked anyone who was willing to help the family to contact the Sunrise team. “We are so sorry you are in this predicament,” she added. Earlier in the segment, Hosking also told Barr that he had until October to find a new home for his family. “I don’t know, just pray and we hope we work with all the agencies and all the government and everything,” he said. “Hopefully something happens or someone can help us. “But I’ve been working with them, I’ve been going to my appointments, doing everything I can and to even be told like there’s no magic wand, there’s no house to give you, [and] the best they might be able to do is put us up in a motel or something. “And how do we have four kids, two adults and a newborn baby in a motel? It’s impossible.” Images: Seven

Caring

“That’s the reality”: Older Aussies forced into shared living

Reserve Bank governor Philip Lowe’s suggestion that more and more Australians would need to consider life in a share house if they had any hope of bringing rental prices down hasn’t landed as he would have hoped. “We’ve got a lot of people coming into the country, people wanting to live alone or move out of home,” he said. “The way that this ends up fixing itself is unfortunately through higher housing prices and higher rents. “We need more people on average to live in each dwelling, and [higher] prices do that.” But for those wrestling with Australia’s cost of living crisis and high rental demand with even higher costs, the suggestion is hardly cause for comfort. And as 51-year-old Mandy Pritchard - a recently single NGO worker hoping to move closer to friends in either Sydney or Wollongong - told The Guardian, the reality of shared housing isn’t so straightforward anyway. “It’s challenging because I’m obviously not the first choice for a household of twenty-to-thirty-somethings,” she said of her struggles to secure a new home - and potential new roommates - for herself. “I didn’t think I’d be going back to share accommodation at this age, but that’s the reality because of the cost of rent.” According to Pritchard, it could take up to 50% of her full-time wage to rent a one-bedroom property in Sydney’s Newtown suburb if she wanted to live alone. “It’s not as if I am on low income, I make a decent wage,” she pointed out. “I wanted to live even in just a studio apartment, but it just isn’t feasible.” However, as Lowe noted during Senate estimates, the problem and ‘solution’ were a case of supply and demand. “Higher prices do lead people to economise on housing. Kids don’t move out of home because the rents are too expensive or you decide to get a flatmate,” he said. “That’s the price mechanism at work.” He went on to state that the nation’s population was set to rise by 2% with the arrival of migrant workers and international students, and that the only way - in his opinion - to combat the pressure on the housing and rental market was through supply. “Are there 2% more houses? No,” he said. “We’ve got a lot of people coming into the country, people wanting to live alone or move out of home. The way that this ends up fixing itself is, unfortunately, through higher housing prices and higher rents.” Lowe’s comments drew a wave of criticism from housing advocates - with data suggesting that Australians are beginning to share more - as well as the argument that the government actually needed to construct and provide more housing. As Flatmates.com.au’s Claudia Conley said, the share housing website had actually just experienced its busiest April on record. “This year has been unusually busy and we started to see a real increase in traffic around October, which has not died down,” she said. “Month after month we’re breaking new records, with April just gone our busiest ever. March recorded the highest number of new property listings in over two years, since January 2021, up 14% month-on-month to be 33% above March 2022 levels.” Images: Getty

Real Estate

RBA boss' blunt suggestion for struggling renters

Reserve Bank of Australia governor Phillip Lowe is warning Aussies that the nationwide rental crisis will worsen before it gets better. Despite high interest rates and a good chance of another increase as inflation continues to skyrocket, the housing market is showing signs of recovery. However, renters are faced with a short supply and the possibility of the biggest rent hike in decades. Lowe urged people struggling with their payments to consider getting a flatmate or housemate or moving back home. He also suggested people rent out their spare rooms to help with the crisis. "The way that this ends up fixing itself, unfortunately, is through higher housing prices and higher rents," he said. "Because as rents go up people decide not to move out of home, or you don't have that home office, you get a flatmate. "The increase in supply can't happen immediately, but higher prices do lead people to economise on housing." Lowe explained that housing supply was the biggest challenge on the market and that rents were expected to increase by 10 per cent. That would be the biggest price hike since the 1980s. However, homeowners will be pleased to hear that the market is showing signs of recovery, with a 1.2 per cent growth recorded in May 2023. Image credit: Getty

Real Estate

"I'd ban their whole operation": Tiny sticker highlights huge crisis

From advertisements to artwork there’s no escaping stickers on street poles, but one that was spotted in Melbourne has made waves, calling out a glaring issue that is impacting so many Australians. The sticker in question was stuck to a traffic light in Melbourne and appears to take aim at homeowners who are worsening the national housing crisis by listing their properties as short-term Airbnb stays rather than long-term rentals. The sticker, shared to social media reads, “You wouldn’t open an Airbnb in a housing crisis” a spoof of the mid-2000s ‘Piracy. It’s a crime.’ public service announcement that was played before movies. Images of the sticker have been shared across a number of social media platforms, with many people quick to praise the “genius” DIY PSA and requesting copies to stick around their suburbs on lockboxes in their own apartment complexes. While some found the funny side of the message, others were more critical of the sticker calling out landlords and Airbnb. “You wouldn’t incentivise opening an Airbnb by making it less onerous and more profitable than renting out your property,” someone said. “Course they would,” another responded. “The ‘f**k you, got mine’ mindset is getting stronger.” “If I had my way I’d ban their [Airbnb] whole operation overnight.” The issue of short-term holiday letting and the growth of Airbnb across the country is that it's eating up potential long-term rentals, which is a The calls come amid the rental crisis in Victoria, with vacancy rates reaching a record low of 0.8 per cent in Melbourne in April 2023, which is one of the better rates recorded across Australia as new rental listings dropped by 18.9 per cent. The only capital city to have rental vacancy above one per cent is Canberra, at 1.6 per cent. While Adelaide holds the tightest rental market with a mere 0.3 per cent vacancy. Perth is close behind at 0.4 per cent. Sydney’s new listings fell by 17 per cent in April 2023 and 5.1 per cent in the past year while Melbourne dropped by 20.8 per cent in the span of a month, and 17.9 per cent in the past year, according to PropTrack. The NSW government introduced regulations to limit the time a property could be on the market to 180 days a year. The Victorian Greens have called on the Andrew’s government to strip it to 90 days. A similar, “tourism tax” has been introduced to cities overseas, where a small payment is added to the guest’s bill in certain tourism hot spots each night in a big to funnel money back into local communities’ infrastructure. Airbnb told The Age that a statewide tourism levy was the preferred way to regulate the industry as it is more consistent than a council-by-council approach. “We believe tourism levies are a fair and sustainable way to raise revenue for local communities, especially in areas of high tourism, as they broaden the revenue base without imposing an additional burden on local ratepayers or businesses,” Airbnb Australia and New Zealand’s head of public policy Michael Crosby told the outlet. Speaking to news.com.au, Airbnb's country manager for Australia and New Zealand Susan Wheeldon said the platform had proposed a series of measures to “help build stronger communities, foster sustainable tourism growth, and equip governments across Australia with tools to help address important issues, such as housing affordability and amenity”. It included a statewide registration scheme to document new listings, introducing consistent Codes of Conduct for guests, hosts, and communities, as well as support for government reviews of eviction protections. “Airbnb is keen to work together with a broad range of stakeholders and help play a part in helping to provide meaningful solutions and tackle the issue of housing supply and affordability,” Wheeldon said. “While short term rentals generally comprise a tiny proportion of the overall property market, we’re keen to keep finding ways that we can make a positive contribution to this important issue.” Image credit: Reddit

Real Estate

Breaking the mould: why rental properties are more likely to be mouldy and what’s needed to stop people getting sick

<a href="https://theconversation.com/profiles/rebecca-bentley-173502">Rebecca Bentley</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a>; <a href="https://theconversation.com/profiles/nicola-willand-441807">Nicola Willand</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>, and <a href="https://theconversation.com/profiles/tim-law-1438482">Tim Law</a> Rental properties are more <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8835129/">likely be mouldy</a> than other homes. This is a concern as excessive mould growth is known to <a href="https://www.who.int/publications/i/item/9789289041683">harm human health</a>. Once buildings are infested with mould, the difficult and costly issue of remediation arises. Landlords and tenants are caught in the middle of a tussle over who is responsible for fixing the problem. As one Melbourne renter and research participant told our colleague Maria Gatto, during a study validating mould reporting: <blockquote> The landlord came around [and] walked [into] every room where there’s black mould on the ceiling – like it’s freaking [something out of the TV series] Stranger Things – and she’s like, ‘Oh, a little bit of mould in winter, it’s very normal, it’s fine […] this happens every winter, it’s not a big deal’. </blockquote> Heading into winter, after <a href="https://theconversation.com/la-nina-3-years-in-a-row-a-climate-scientist-on-what-flood-weary-australians-can-expect-this-summer-190542">three consecutive La Niñas</a>, <a href="https://theconversation.com/sudden-mould-outbreak-after-all-this-rain-youre-not-alone-but-you-are-at-risk-177820">conditions are ripe</a> for a mega-mould season. Combining our expertise in health, law, building and construction, we examine the problem of mould in homes and offer guidance for both renters and landlords. <h2>Ideal conditions for growth</h2> Mould is a <a href="https://www.cdc.gov/niosh/topics/indoorenv/whatismold.html">fungal growth</a> that reproduces via tiny airborne particles called spores. When these spores settle on moist, plant-based construction materials such as wood, wallpaper or plasterboard, they can form a new colony. Growth is more likely when homes are cold, humid, lack air flow, or suffer from water damage. Outbreaks have been reported in flooded parts of southeastern Australia. <figure><iframe src="https://www.youtube.com/embed/sD2Ij_QlzwA?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe><figcaption>Black mould an invisible threat growing behind walls of flood-affected homes (ABC News)</figcaption></figure> So why is the problem of household mould worse in rentals? <a href="https://www.ahuri.edu.au/research/final-reports/338">Weak regulation of tenancy legislation</a> is just one of many factors. Rental properties tend to be poorly maintained, with <a href="https://www.ahuri.edu.au/research/final-reports/338">structural problems</a> such as leaks. Given this, they can be expensive to heat. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/526246/original/file-20230515-19465-odirz2.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/526246/original/file-20230515-19465-odirz2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/526246/original/file-20230515-19465-odirz2.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=422&fit=crop&dpr=1 600w, https://images.theconversation.com/files/526246/original/file-20230515-19465-odirz2.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=422&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/526246/original/file-20230515-19465-odirz2.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=422&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/526246/original/file-20230515-19465-odirz2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=531&fit=crop&dpr=1 754w, https://images.theconversation.com/files/526246/original/file-20230515-19465-odirz2.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=531&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/526246/original/file-20230515-19465-odirz2.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=531&fit=crop&dpr=3 2262w" alt="A chart showing the percentage of homes with structural defects in each category" /></a><figcaption>Rental homes have more structural defects than owner-occupied homes. <a class="source" href="https://www.ahuri.edu.au/research/final-reports/338">Nicola Willand, using data from Moore et. al., (2020), Warm, cool and energy-affordable housing policy solutions for low-income renters, AHURI Final Report, vol. no. 338. Appendix 2</a>, Author provided</figcaption></figure> <h2>How mould makes people sick</h2> The <a href="https://www.who.int/publications/i/item/9789289041683">World Health Organization</a> recognises mould can be harmful. A 2022 Asthma Australia <a href="https://asthma.org.au/what-we-do/advocacy/housing/">report</a> revealed people living in mouldy homes were more likely to have asthma and allergies. A systematic review of peer-reviewed research found <a href="https://erj.ersjournals.com/content/38/4/812">children living in mouldy homes</a> were more likely to experience asthma, wheeze and allergic irritation of the eyes, nose, throat and mouth (allergic rhinitis). Living with mould is a source of stress. People worry about the consequences for their health and there is a growing body of evidence describing the <a href="https://jech.bmj.com/content/50/1/56">negative mental health effects</a> of mouldy, damp homes. <h2>Problems with managing mould in the rental sector</h2> There is a gap between building and residential tenancies legislation. A building deemed to meet the minimum standards of the construction code with respect to mould may not meet the minimum standards for rental. That’s because there’s ambiguity in the <a href="https://ncc.abcb.gov.au/">National Construction Code</a> around “minimum standards of health”. For example the Victorian <a href="https://www.legislation.vic.gov.au/in-force/acts/building-act-1993/136">Building Act 1993</a> contains some provisions for the relevant surveyor to serve a notice on the basis of a health circumstance affecting a user. However, there is no guidance on how to assess the health of the indoor environment, or to deliver a building direction that will address the root cause for mould. This varies by state and territory. Mould remediation can be costly. A <a href="https://www.vba.vic.gov.au/about/research/examining-indoor-mould-and-moisture-damage-in-victorian-residential-buildings">study</a> by Victoria University found half the defects causing mould were water-related. These were more expensive to fix than other problems, by an average of A$7,000. Each winter, <a href="https://tenantsvic.org.au/advice/common-problems/mould-and-damp/">Tenants Victoria</a> deals with a spike in renters seeking legal help to resolve their mould problems. This led to the service launching an annual winter Mould Clinic in 2021. Despite increased legal protections, renters are still struggling to get mould fixed. For these reasons, many renters find the legal process doesn’t offer a solution to their problem, and instead move to a new property, with all its attendant costs and stresses. Others can’t afford to leave, or live in social housing with limited transfer options. <h2>Charting mould in homes across Australia</h2> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/525848/original/file-20230512-21-xb83ft.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/525848/original/file-20230512-21-xb83ft.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/525848/original/file-20230512-21-xb83ft.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/525848/original/file-20230512-21-xb83ft.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/525848/original/file-20230512-21-xb83ft.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/525848/original/file-20230512-21-xb83ft.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/525848/original/file-20230512-21-xb83ft.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/525848/original/file-20230512-21-xb83ft.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" alt="A bar chart comparing the prevalence of mould in homes across Australian states and territories" /></a><figcaption>Mould is more prevalent in rentals compared to owner-occupied dwellings. Mould is most commonly reported in New South Wales. The difference between owners and renters is greatest in the ACT. Australian Housing Conditions Dataset 2022 doi:10.26193/SLCU9J, Author provided</figcaption></figure> <h2>Where does the responsibility lie?</h2> Tenancy legislation varies by state and territory. Renters should familiarise themselves with the regulations in their jurisdiction. In Victoria, <a href="https://www.legislation.vic.gov.au/in-force/acts/residential-tenancies-act-1997/101">residential tenancies legislation</a> has set the criteria that “each room in the rented premises must be free from mould and damp caused by or related to the building structure”. Landlords now must disclose if they have treated mould in the past three years. Similarly, <a href="https://www.rta.qld.gov.au/rental-law-changes">new legislation in Queensland</a> (coming into effect in September) states rental properties should be free from vermin, damp and mould where this is caused by issues with the structural soundness of the property. In New South Wales, the landlord needs to <a href="https://www.fairtrading.nsw.gov.au/housing-and-property/renting/during-a-tenancy/health,-safety-and-security">disclose signs of mould</a> and dampness in the condition report (but not necessarily have fixed it). Mould is not mentioned in the <a href="https://www.legislation.act.gov.au/a/1997-84/">ACT residential tenancies legislation</a>. For the most part, the responsibility for mould in rental properties lies with landlords if the cause is structural –- for example, if a broken or faulty window frame has let rainwater inside. Requests for urgent repairs can be accompanied by an assessment report by an occupational hygienist, environmental health professional or expert from the local council. People with an existing health condition such as asthma can include a doctor’s report. <h2>What next?</h2> To achieve change across all relevant domains of regulation, construction, natural disaster response and government policy, we need a sustainable, broad healthy <a href="https://www.healthyhousing-cre.org">housing agenda in Australia</a>. We also need to consider options for immediate action. As one Victorian renter noted: <blockquote> When we buy a car for the purpose of driving on the roads, we’re required to get a roadworthy certificate to make sure it’s safe, because of the risk to other people […] Ideally it would be great if there was [some] kind of ‘rentworthy’ certificate […] to demonstrate that the property has been inspected, to identify any structural issues that might affect the tenant’s health and wellbeing. And that that be available to tenants […] before they enter into a lease or before (the property is) even able to be advertised. </blockquote> Quotes in this article were collected by Maria Gatto as part of her Masters of Public Health, conducted at the Melbourne School of Population and Global Health in 2022.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/205472/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/rebecca-bentley-173502">Rebecca Bentley</a>, Professor of Social Epidemiology and Director of the Centre of Research Excellence in Healthy Housing at the Melbourne School of Population and Global Health, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a>; <a href="https://theconversation.com/profiles/nicola-willand-441807">Nicola Willand</a>, Senior Lecturer, School of Property, Construction and Project Management, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>, and <a href="https://theconversation.com/profiles/tim-law-1438482">Tim Law</a>, Guest lecturer and Practice Lead — Building Sciences, at Restoration Industry Consultants Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/breaking-the-mould-why-rental-properties-are-more-likely-to-be-mouldy-and-whats-needed-to-stop-people-getting-sick-205472">original article</a>.

Real Estate

Federal Budget 2023: How to make the most of the key promises

Treasurer Jim Charles has handed down his first budget for 2023/24, offering a series of measures aimed at tackling the cost-of-living crisis. Millions of Australians will receive a boost from the federal government medical care, bills and welfare payments, amid the forecast that the budget will be be in the black with a surplus of $4bn. Here’s what it means for you: Bill help Those who are on the pension, a seniors card holder or a recipient of family tax benefits A and B will be eligible to get help with energy bills thanks to a deal between the states and Commonwealth that’s worth $1.5bn. That means over five million eligible households and one million eligible small businesses will benefit from the scheme. The relief will come in the form of credits that apply directly to their power bills rather than cash, and the amount they receive will depend on the state they live in. Medicare Relief The incentives paid to GPs who bulk bill 11.6m eligible Australians including children under 16, pensioners and other concession card holders will increase. GPs will be able to claim the incentives for in-person consultations over six minutes long and certain telehealth consultations. GPs who bulk bill patients in the city will be paid a new incentive of $20.65 compared to the previous rate of $6.60, while regional GPs will receive a $31.40 incentive, up from $10.05. Welfare recipients Over 1.1 million vulnerable Australians will benefit from a $40 fortnightly boost from September, if parliament agrees. The increased base rate will apply to people receiving JobSeeker, Youth Allowance, Parenting Payment (partnered), ABSTUDY, Disability Support Pension (Youth) and Special Benefit. Rental assistance For many renters, this budget means that rent is forecasted to increase over the next year as the market tightens. However, for those currently receiving the maximum Commonwealth Rent Assistance allowance their payments will increase by 15 per cent. Here’s what the Federal Budget will look like at a glance: <ul> <li dir="ltr"> Budget deficit of $13.9 billion in 2023/24 </li> <li dir="ltr"> Commonwealth net debt to rise to $574.9 billion (22.3 per cent of GDP) in 2023/24 </li> <li dir="ltr"> Economic growth to fall to 1.5 per cent in 2023/24 </li> <li dir="ltr"> Unemployment rate to rise to 4.25 per cent in 2023/24 </li> <li dir="ltr"> Inflation as measured by CPI to be 3.25 per cent in 2023/24 </li> <li dir="ltr"> Wages to rise by four per cent in 2023/24 </li> </ul> And here are the key measures the federal budget has promised: <ul> <li dir="ltr"> Energy bill relief for five million households and one million businesses </li> <li dir="ltr"> Triple bulk-billing incentives and more funding for urgent care clinics </li> <li dir="ltr"> Base rate of JobSeeker and other payments to be raised for 1.1 million households </li> <li dir="ltr"> Commonwealth Rent Assistant rise for 1.1 million households </li> <li dir="ltr"> Housing boost including tax breaks for build-to-rent investors </li> <li dir="ltr"> $4 billion extra for renewable energy </li> <li dir="ltr"> Tax breaks for small business to write-off assets and reduce energy costs </li> <li dir="ltr"> Targeted help for jobless aged over 55 </li> <li dir="ltr"> Cut to cost of medicines </li> </ul> Image: Getty Images/ Martin Ollman / Stringer

Money & Banking

Landlord slammed for listing $300-a-week "coffin"

A Sydney landlord has sparked outrage online after advertising a “coffin” for rent at an astonishing price. A Reddit user shared the Facebook Marketplace advertisement for the “pantry room”, located in an apartment at the heart of Sydney’s CBD. The room contains just one single mattress that fills the entire width of the room, with no window and just a small patch of space between the bed and the room’s door. The questionable listing is advertised for $300 a week. Initially advertised as a “Penthouse small room” for $300 a month - or $75 a week - the Reddit user who found the ad confirmed this was false. “I have clarified with the person who posted this ad, it is $300/week to sleep in a CBD apartment pantry room,” they said. Fellow Reddit users were dumbstruck by the listing, saying that it goes to show how “out of hand” Australia’s rental crisis has become. “This is how far Sydney has fallen. F*** this shit,” one wrote. Another added, “At this point in the rental crisis I shouldn’t be surprised, but wow ... what a scam!” “Worst part is I guarantee people would consider it.” a third wrote. “Lol this is what I pay for a one bedroom apartment near the beach in Newcastle.” Another response read. Another noted, “It’s a cupboard - not a bedroom.” Others questioned if it was legal to rent the room as it has no window. According to the National Construction Code, in order for a bedroom to be “habitable” it has to have access to daylight and natural ventilation. Experts said this usually calls for a window. “That’s illegal anyways, every habitable room must have a window. You could report it,” wrote one Reddit user. “But my lord ... is that legal?” another questioned. Many users commented that they “weren’t surprised” given the lows that some landlords are going to in the current climate. “Amazed they didn’t put a bunk bed in there,” one wrote. Another added, “Yeah, I think the eternity I spend in a coffin will be time enough to enjoy these sorts of conditions.” While a third joked, “Would the person that rents this out please sub-let the top 30cm of this penthouse to me? I’d sleep in a submarine hammock bed up there. Say, $200 a week?” Image credit: Reddit

Real Estate

Tiny Tassie home comes under fire for steep rental rate

A property up for rent in Tasmania’s Huon Valley has faced a wave of criticism over its rental asking price - at a staggering $175 per week for the freestanding, singular room. While the ‘home’ does boast stunning views as well as access to the main property’s amenities, most are in agreement that the asking price serves as a harsh reminder that Australia’s housing crisis is far from over. The advertisement first appeared on Facebook Marketplace, with a listing that declared it to be a “small fully insulated cabin with heat and power. Shared kitchen and bathroom. $175 [per] week! “On a rural bush setting with walking tracks, creeks and magnificent views. Just three-minute drive from Cygnet or 25-minute walk. Genuine inquiries only. Thank you.” Comments from irate viewers came in fast and furious, with even going so far as to post on Twitter about the listing, writing “this tiny wooden box is barely wider than a two-seater couch, has no bathroom, no kitchen, and is a 25 minute walk from Cygnet. “The owner wants $175 a week. If you had tried that on as little as five years ago, someone would have tossed you directly into the Tasman Sea.” “My chook pen is bigger than that,” a fellow user said in response. “I’ve seen better dog kennels,” someone else declared. And one even asked if the building had “approval as a habitable building”, while another asked if it was actually just a ‘dunny’. Luckily for the owner, the Tenants Union of Tasmania at least confirmed to 7NEWS.com.au that “the property does meet the requirements of a ‘boarding premises’ under the Residential Tenancy Act 1997 (Tas).” The owner was of another opinion to the critics, however, reportedly telling The Mercury that “if people had actually reached out to me before having a crack they would see I am an honest guy trying to help people. “I share the main house with my 18-year-old daughter and we both work full-time jobs. I don't charge electricity, water or rates and I couldn't do it any cheaper with rising interest rates.” And as he also told 7NEWS, “I thought, coming into winter, it’s going to be pointless having a good home there [if it’s not being used], and if I can share the cost of living with somebody, my daughter and I would be happy to have the right tenant to come along.” Images: Twitter

Real Estate

What made rents soar? It might have been COVID, and pairing off

So, you think you know why rents climbed. You probably think was skyrocketing interest rates and a tsunami of migration. It’s true that interest rates have jumped more over the past year than at any time on record, and it’s true that migration has roared back – in the six months to September 2022 (the latest month for which we’ve official figures) arrivals exceeded departures by <a href="https://www.abs.gov.au/statistics/people/population/national-state-and-territory-population/sep-2022">170,000</a>. But here’s the thing. Advertised rents began climbing sharply in <a href="https://www.realestate.com.au/insights/where-rents-prices-are-really-skyrocketing-in-some-cases-by-600-a-week-more/">late 2021</a> – six months before the Reserve Bank began pushing up interest rates, and at a time <a href="https://theconversation.com/top-economists-expect-rba-to-hold-rates-low-in-2022-as-real-wages-fall-175054">when it was forecast not to</a>. And “net migration” was <a href="https://www.abs.gov.au/statistics/people/population/national-state-and-territory-population/sep-2021">negative</a> back when rents were taking off – meaning the number of arrivals didn’t even match the number of departures. <h2>It’s supply and demand</h2> Something else made rents move. As it happens, there’s no particular reason to think interest rates would have quickly affected rents even if they had been climbing. If higher rates force some landlords to sell, and they sell to other landlords, the number of properties for rent won’t change. If those landlords sell to owner occupiers who would otherwise rent, they cut both the number of rental properties and the number of renters. What matters for rents, as for any price, is the demand for and the supply of the product being priced. More demand (more renters wanting properties) and the price climbs. More supply (more properties available for rent) and the price falls. On the face of it, neither demand nor supply was changing much during COVID as rents started climbing. Australia’s population was growing more slowly than at any time <a href="https://www.rba.gov.au/speeches/2023/sp-gov-2023-04-05.html">in modern history</a>. And, as best as we can tell, the number of properties available for rent was climbing, <a href="https://www.abs.gov.au/statistics/industry/building-and-construction/building-activity-australia/latest-release">albeit weakly</a>. What did change during COVID, according to the research department of the Reserve Bank, was the <a href="https://www.rba.gov.au/publications/bulletin/2023/mar/renters-rent-inflation-and-renter-stress.html">average number of people per household</a>. The change doesn’t sound big – the average fell from a bit above 2.6 residents per household to a bit below 2.55 – but applied to millions of households it meant about <a href="https://www.rba.gov.au/speeches/2022/sp-ag-2022-05-25.html">140,000</a> more houses and apartments were needed than would have been. <h2>Average household size (capital cities)</h2> The sudden change was awfully for hard for the building industry to respond to, especially when it was laid low by COVID. Why did we suddenly want to live with fewer people? The head of the Bank’s economic division, Luci Ellis, thinks it was COVID itself, and lockdowns. We suddenly became more precious about sharing space. <h2>‘Love the one you’re with’</h2> Ellis says proportion of Australians living in group houses declined and stayed low. Faced with the choice of living with a large number of housemates and just one other person, perhaps a romantic partner, a lot of renters left group houses and <a href="https://www.rba.gov.au/speeches/2022/sp-ag-2022-05-25.html">shacked up with each other</a>. As she put it last year, "On the question of who you would rather be locked down with, at least some Australians have voted with their removalists’ van, by moving out of their share house and in with their partner." There’s more to it of course, but where the supply and demand for anything are roughly in balance (rents had been increasing by <a href="https://theconversation.com/rent-crisis-average-rents-are-increasing-less-than-you-might-think-189154">less than 1% per year</a> in the four years before COVID, and fell in the first year of COVID) any sudden change in either supply or demand can move prices quickly. <h2>Advertised rents aren’t typical …</h2> Having said that, for most renters prices are still moving slowly. Advertised capital city rents are up <a href="https://www.realestate.com.au/insights/where-rents-prices-are-really-skyrocketing-in-some-cases-by-600-a-week-more/">13%</a> over the past year, and advertised regional rates up 9%. But average rents (the average of what all renters pay) are up only 4.8%. The rents charged to ongoing tenants climb <a href="https://theconversation.com/rent-crisis-average-rents-are-increasing-less-than-you-might-think-189154">much more slowly</a>than the rents charged to new tenants, in part because landlords often like their tenants, and in part because for the first year renters are usually on fixed contracts. But over time as renters move home, and landlords become less squeamish, more and more renters tend to pay the rents advertised. It makes the increase in advertised rents an unwelcome sign of what’s to come. <h2>… but they’re a sign of rents ahead</h2> And it might get worse. Reserve Bank Governor Philip Lowe says population growth is set to climb to <a href="https://www.rba.gov.au/speeches/2023/sp-gov-2023-04-05.html">2%</a> – near the peak reached during the resources boom. We won’t be able to build houses anything like that fast. Lowe says the last time Australia’s population surged it took about <a href="https://www.rba.gov.au/speeches/2023/sp-gov-2023-04-05.html">five years</a> for housing supply to fully respond to housing demand. We’ve ways of dealing with it of course. One is to re-embrace group homes, another is to delay moving out of our partents’ homes, or to move back in. But even if this does happen, Lowe says, with typical understatement, that rent inflation – ultra-low before COVID – is likely to stay “quite high” for some time. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/what-made-rents-soar-it-might-have-been-covid-and-pairing-off-203542" target="_blank" rel="noopener">The Conversation</a>.

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

Real Estate

International student forced to live in tent

A 27-year-old student Zoe Jiang travelled from China to Sydney to attend university and much to her surprise, she was forced to sleep in a tent. The finance student arrived in Australia in January 2023 and was shocked to discover the rental prices were too high, resulting in her having to set up camp in short-stay accommodation. During one of her short stays, Ms Jiang did not have a room of her own. She had to pitch a tent in the middle of the living room to allow privacy from her roommates who came home late. Despite sleeping in the shared room, she was paying $300 a week in rent. "I have never had a night in a tent before," Ms Jiang said. "It's a fresh experience, and I think camping in a living room is very different." She has since found long-term accommodation, but she had lived in three different places in less than two months. Ms Jiang is one of many international students struggling to find a home in the nation's growing rental shortage. Housing advocates are concerned that international students are at risk of exploitation and are urging universities to offer support. Ms Jiang is just one of thousands of Chinese international students who had to rush back to Australia or face the risk of losing their qualifications under a new Chinese government policy. Ms Jiang joined the 59,000 international students who arrived in Australia in January 2023, a figure that proved “more than double” the amount as the same time last year, Universities Australia said. Sydney’s rental vacancy is currently at its worst, growing 35 per cent in unit rents across the city. Hundreds of residents are seen lining up outside rental inspections, but international students are suffering the most. The national president of the Council of International Students Australia, Yeganeh Soltanpour, said many international students who have just arrived are often overlooked by real estate agents. "[They] don't have a rental history because they are from overseas, so the chance for them to apply for a rental and get it is a lot lower," she said. Local students might be able to find rental vacancies through personal and family networks, but newly arrived international students have “almost zero connections”. "They can't ask someone for help, they don't always know where to look at ... [and] they might not know a lot about the areas," she said. "They may not even know how to use public transport properly. "This leads to the issue that they have to choose homes within the CBD area, which means they have to pay more rent." Zoe Jiang is one of many international students forced to stay in a shared space like a living room. Leo Patterson-Ross, CEO of the Tenants’ Union of NSW, said transforming a living room into a bedroom could be unlawful. "The assumption is that it is unlawful under planning rules, under local councils, to convert a room to her bedroom without getting consent from council," he said. Mr Patterson-Ross mentioned he had seen "some very unlawful and often abusive behaviour" from landlords and head tenants who sublet rooms to students. This includes withholding students’ passports and threatening to report them to the immigration department if they were to breach the tenancy agreement. Mr Patterson-Ross also said that to prevent exploitation against international students, the government must fix “the fundamental issue” that everyone is faced with. “We just do not have enough homes for everyone in Australia," he said. "And that supply is not just the buildings, but also the pricing of the buildings." He also called for an independent third-party audit to ensure rentals in the market are of good quality rather than having renters shoulder the burden. Ms Soltanpour has asked international students to support each other to combat the rental crisis, but emphasised it was not their responsibility to “fix the issue”. She also called on universities to offer more support for students struggling to find accommodation. The chief executive of Universities Australia, Catriona Jackson, acknowledged that finding a rental anywhere in Australia is difficult for international students at the moment. "Universities continue to support students by providing information on accommodation options before they arrive in Australia along with various other support services," she said. "We encourage any student struggling to secure housing or facing financial pressures to reach out to their university for assistance." Fortunately for Ms Jiang she eventually secured her own room in North Sydney, paying $300 a week – the same amount as when she was sleeping in a tent. She met her new neighbour on the day she moved in, an elderly Italian woman who migrated to Australia when she was just 19. Ms Jiang’s new neighbour invited her in for a cup of tea and encouraged her to make new friends in Australia as “life is a gift”. Taking to social media after her move, a clearly grateful Ms Jiang wrote, “It’s such a great day.” Image credit: Shutterstock

Real Estate

Bizarre reason mum with one-year-old “failed” rental inspection

A frustrated NSW mother has slammed her real estate agent after she “failed” her home rental inspection. Samantha Smith said the agent was inspecting her Newcastle property at the time. “I failed because I need to tidy up, I need to tidy up the toys,” she said in a TikTok, showing viewers her son’s toys which were stored on shelves and the floor. “Sorry, I need to tidy up the toys? I’ve got a one-year-old. “Are they allowed to say that?” The agent said the mattress in the living room made it difficult to access other parts of the house. Smith walked around the mattress into another room in an attempt to show that it wasn’t a cause for concern. “My partner sleeps there because, you know, I have a one-year-old, and he gets up at 4:30 (in the morning) and I don’t want him to wake us up,” she explained. The mum also mentioned that a cleaner comes every week to clean the entire house and said that “everything” is cleaned frequently. Aside from the toys and mattress, Smith revealed the agent also told her to tidy up the linen press cupboard and clean the ceiling fans. “This is the only cupboard where I can store our linen press stuff and our food because the whole house has no other cupboards,” she said. “Is that a joke? Like how is what’s in my cupboard any of her business?” She then shared the agent told her to wash the outside of her house. “That’s mould, mate, that’s black mould, I’m not washing that, like that’s not my business,” Smith said, panning the camera to the outside walls and overall exterior of her property. “Why is she judging me (for) the way I live? “What peeves me is that there is so much that needs to be repaired.” She then walked around the property and pointed out damages showing an unstable wooden corner of the room, lifting floorboards on the outside deck, a rotten handrailing and a damaged gate that wouldn’t close. The frustrated mother said she had been living on the property for seven years and paid $550 for rent per week. She also mentioned the lack of storage in her home, adding that the contract prevented her family from storing items in the garage, so they had to rent out a storage unit for $150 per week. “I’m pretty pissed off, like the fact that, you know, there’s stuff that needs to be fixed that is severe, like we could fall through the deck, the corner could fall off and split our head open, like our blinds are actually yellow on the other side so they’re all brittle, she wants me to fix them. Like I didn’t do the damage, the sun did,” Smith explained. Smith’s video went viral on TikTok, attracting more than 43,000 views and hundreds of comments. Many people sympathised with the mother, expressing their own shock at the agent’s requests, saying inspections should be focused on inspecting damage to the property alone. “Rental inspections used to check for any damage, structural damage and to ensure the house is being kept in a hygienic manner. These days they expect the house to be presented better than when you moved in. Toys, belongings in cupboards etc is not to be penalised,” one person explained. “They can only look at the general wear and tear of the house. They cannot tell you to tidy your house or to pick up toys. Take them to tribunal,” another added. “A house inspection should be more worried about damage to the house than a mess of kids’ toys. A man was told to make his bed in an inspection,” a third said. Other TikTok users shared their own similar experiences. “My property manager told me I had too many ‘knick knacks’ on my shelves,” one said. “Don’t worry I got told that I can’t have a table in my garage because it’s only for cars and that my baby toys needed to be hidden away,” another commented. “37 weeks pregnant, husband doing overtime before baby comes and they wanted me to have the house in the same condition they rented it to us,” another user shared. Image credit: TikTok

Real Estate

Kochie shocked at co-host’s revelation

Sunrise host Monique Wright has left her co-hosts, Natalie Barr and David Koch, visibly shocked after revealing the “appalling” situation she was in. On Thursday, Wright told her co-hosts that she is among the “desperate” Aussies struggling to secure a home, after a segment on rentals. “We've recently been looking, and we've looked at 30 properties,” Wright shared. “Wow,” her co-hosts exclaimed in sync. “'It is appalling. It is so appalling,” she continued amid their gasps. “You see it. People are desperate. We've been desperate,” Wright added to which Barr agreed that the rental crisis is affecting everyone “at every price point”. Kochie sat in visible shock throughout the whole conversation, and was only able to respond with “amazing”. According to <a href="https://www.domain.com.au/research/vacancy-rates-february-2023-1198404/" target="_blank" rel="noopener">Domain</a>, Australia’s national vacancy rate remained 0.8 per cent in February, but the vacancy rates across the combined capital has declined to 0.7 per cent. In Sydney and Melbourne, vacancies have declined below 1 per cent to 0.9 per cent and 0.8 per cent, respectively. Perth and Adelaide have the tightest rental market at just 0.3 per cent. This comes after many families are struggling to find a home and are forced to sleep in <a href="https://www.oversixty.com.au/property/real-estate/homeless-teen-and-dad-living-in-park-amid-housing-crisis" target="_blank" rel="noopener">tents</a>. Shocking images of landlords attempting to benefit off this crisis have also gone viral, whether it’s advertising a <a href="https://www.oversixty.com.au/finance/money-banking/desperate-measures-shed-advertised-as-three-bedroom-rental" target="_blank" rel="noopener">shed as a three bedroom renta</a>l, or <a href="https://www.oversixty.com.au/property/real-estate/landlord-rents-out-balcony-for-300-a-week" target="_blank" rel="noopener">renting out balconies</a> for $300 a week. Chief executive officer of the Tenants' Union of New South Wales, Leo Patterson Ross told the <a href="https://www.dailymail.co.uk/news/article-11917597/Kochie-shocked-Sunrise-cohost-reveals-personal-battle.html" target="_blank" rel="noopener">Daily Mail</a> that although the economic circumstances were vastly different 90 years ago, rental conditions are now worse than the Great Depression in the 1930s. “We have to go back that far because we haven't seen this kind of widespread general experience of the system going wrong,” he said. Image: Sunrise

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Stay or go? Most older Australians want to retire where they are, but renters don’t always get a choice

Tenants forced to pay landlord after fleeing their “uninhabitable” rental

Real estate agency slammed for "greedy" rental increase

"You are the problem": Landlord slammed over rent increase just before Christmas

Women forced to do shocking act for $100 rent reduction

"Disgustingly sick": Family's horrifying find in rental home

The rental housing crisis is hurting our most vulnerable and demands a range of solutions (but capping rents isn’t one of them)

Nat Barr’s emotional plea for young family

“That’s the reality”: Older Aussies forced into shared living

RBA boss' blunt suggestion for struggling renters

"I'd ban their whole operation": Tiny sticker highlights huge crisis

Breaking the mould: why rental properties are more likely to be mouldy and what’s needed to stop people getting sick

Federal Budget 2023: How to make the most of the key promises

Landlord slammed for listing $300-a-week "coffin"

Tiny Tassie home comes under fire for steep rental rate

What made rents soar? It might have been COVID, and pairing off

Those copping the brunt of Australia's rental crisis

International student forced to live in tent

Bizarre reason mum with one-year-old “failed” rental inspection

Kochie shocked at co-host’s revelation

Our Partners

News

Shop

Catalogues

Newspaper

Contests

Entertainment

Travel

Health

Lifestyle

Finance

Property

Compare

Games

Information

Keep up to date

Search

Stay or go? Most older Australians want to retire where they are, but renters don’t always get a choice

Tenants forced to pay landlord after fleeing their “uninhabitable” rental

Real estate agency slammed for "greedy" rental increase

"You are the problem": Landlord slammed over rent increase just before Christmas

Women forced to do shocking act for $100 rent reduction

"Disgustingly sick": Family's horrifying find in rental home

The rental housing crisis is hurting our most vulnerable and demands a range of solutions (but capping rents isn’t one of them)

Nat Barr’s emotional plea for young family

“That’s the reality”: Older Aussies forced into shared living

RBA boss' blunt suggestion for struggling renters

"I'd ban their whole operation": Tiny sticker highlights huge crisis

Breaking the mould: why rental properties are more likely to be mouldy and what’s needed to stop people getting sick

Federal Budget 2023: How to make the most of the key promises

Landlord slammed for listing $300-a-week "coffin"

Tiny Tassie home comes under fire for steep rental rate

What made rents soar? It might have been COVID, and pairing off

Those copping the brunt of Australia's rental crisis

International student forced to live in tent

Bizarre reason mum with one-year-old “failed” rental inspection

Kochie shocked at co-host’s revelation

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