The continued decline in housing affordability, if left unchecked, may see an escalation in the number of homeless Australians, the Housing Industry Association warned today.

Soaring rents and a higher incidence of mortgage stress are placing unprecedented pressure on lower-income families.  HIA’s Managing Director, Ron Silberberg, said there are now more than half a million households who are paying more than 30 per cent of their income in rent or loan payments.  Record low vacancy rates in rental accommodation and the resulting rent auctions are pushing lower-income Australian households closer to the poverty line.

Research undertaken by the ANU’s National Centre for Social and Economic Modelling (NATSEM) indicates that the number of private renting households in housing stress will jump alarmingly by 108,500 or 38 per cent over the next four years based on private rents increasing by six per cent per year (see tables over page). 

“Housing affordability needs to be embraced by heads of government.  There is now a desperate need for concerted Commonwealth and State action to remove impediments to the supply of affordable housing and provide incentives to encourage additional lower-cost private rental investment.

Governments at all levels have access to a range of policy levers that can assist in providing affordable housing,” Dr Silberberg said. “Would-be investors face an exhaustive list of taxes and red tape which discourage investment in the rental market.  It is pleasing that at least some state governments are now looking at this issue, however, urgent action is required.

“The implications for public housing are alarming.  There is simply no way that the current supply of public housing can satisfy growing demand.” 

Demographic and economic evidence all point to an accommodation crisis, the likes of which Australia has not experienced before.

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