As rental prices soar to historic highs and Australia's property vacancy rates hit record lows, researchers conducted a study using 2021 census data, considering market conditions during the pandemic. However, the study did not account for the situation after the vacancy rates hit new lows in 2022. Therefore, experts believe the problem may be even more severe for tenants now.
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Low-income earners (those earning $39,000 AUD or less annually) are facing growing challenges as they search for rental accommodation, with fewer options available, and many unable to afford the cost of independent living, leading to cohabitation with family members. This presents a long-standing challenge for low-income earners, especially in capital cities, where 82% of low-income earners are burdened with unaffordable rents, reaching 90% in some areas.
Addressing the issues in the rental market is not easy and requires a variety of solutions to make housing affordable and accessible for tenants. This includes constructing more affordable rental housing and implementing tax reforms and policy changes at both the state and federal levels. Failure to address this issue will further drive up rents and exacerbate the scarcity of rental properties, impacting social stability.
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Dr. Angela Jackson, Chief Economist at the Impact Economic and Policy Research Center, expressed shock at these figures, highlighting a deeply flawed housing system. She pointed out that unless you have parental assistance to purchase property, staying in the rental market for an extended period is inevitable if you have a higher income. Addressing this problem requires collaborative efforts from the government, society, and the market to create a fairer and more sustainable rental market.
