According to Proptrack's latest March quarterly rental report, the rental crisis in our capital cities has deepened, with total inventory at an all-time low and demand surging.
Rental prices across Sydney have risen by between 28 and 49 per cent, leaving many residents struggling to pay their bills and international migrants unable to afford a place to live.
The federal government has introduced a number of measures to try to address housing supply and affordability, with the Federal Rental Assistance Scheme increasing by 15 per cent through an injection of $2.7 billion.
Arjun Paliwal, founder and head of research at InvestorKit, said that while giving extra money to low-income households was a step in the right direction, he was concerned that it might not be enough to cover the increased cost of rent.
"It is good that the budget avoids short-term solutions that could negatively impact mum and dad investors and investment property providers.
"However, there is still a rental crisis that needs to be addressed. Given the severity of migration, there needs to be more short-term public housing solutions. Rents are increasing significantly more than the benefits people are receiving and despite the new budget announcing a $2 billion increase for social housing, this is far below the standard we should be meeting as a nation."
"In places like Sydney, where house prices have risen significantly, this change is negligible, which is why we have seen a big increase in lending to first-time buyers this quarter and last."
Australia's peak body for the community housing industry, the Community Housing Industry Association (CHIA), endorses the government's commitment to energy performance and electrification of social housing.
However, its chief executive, Wendy Hayhurst, warned that there was a long road ahead to address the significant challenges posed by the rent crisis.
"Rising rents are hitting household budgets hard. While the federal budget doesn't fully address the crisis, it does have a pathway to do so."
"We applaud the Budget's initiative to make it easier and more attractive to build rental projects by increasing incentives for the sector."
