New data from Corelogic shows record breaking rises in rental prices are pushing thousands of Australians to the brink of homelessness and housing stress.
Figures released today by Corelogic show rents are 6.6% higher over the last year, the highest annual growth in dwelling rents since January 2009.
Regional Australia recorded an annual rate of rental growth of 11.3% in June 2021. This is the highest annual growth result on record, with the CoreLogic rental index commencing from 2005.
There was a 5.0% increase in rents across the nation’s capital cities.
Kate Colvin from Everybody’s Home said the rent increases are a troubling sign for Australians living in housing stress, as well as those currently experiencing or on the brink of homelessness. Ms Colvin said:
“While rents have increased across the board, wages and welfare payments have not kept up, putting even more pressure on Australians already struggling to access stable housing.”
Rental prices rose across the country for the past 12 months, with Darwin recording the highest increase of 21.8%. Perth was second with an increase of 16.7%
Hobart’s rental prices jumped 8.8%, Brisbane saw an increase of 7.3% and Adelaide recorded a 7.2% rise
Rents in Canberra rose by 7.3% over the past year and in Sydney by 3.2%. Melbourne was the only capital city to see a decline of 1.4%.
While rents rose at a rate of 6.6%, the wage price index showed a 1.5% increase for the March quarter, while the Jobseeker payment was increased by just $25 a week in February. Ms Colvin said:
“Rising rents combined with stagnant wages and welfare payments has created a precarious situation for many thousands of Australians. Unless the Federal Government takes action and builds social housing, more people will be plunged into housing stress and homelessness.”
“That will not only deepen inequality but will also deny Australia of the contribution they would otherwise be able to make. The disaster will not only be social, it will also come at a huge economic price.”
“Without access to safe secure housing, people cannot lead fulfilling lives of any kind. If we want people to have jobs and contribute to the economy, we must ensure everybody has a place to call home as a starting point.”
“That can only happen if the Federal Government makes an urgent investment in social housing.”
Data released last month by the Australian Institute of Health and Welfare shows that from 2014 – 2020, the proportion of social housing households fell from 4.6 to 4.2 per cent.