- What is the problem?
Property affordability in Australia is driving people to a lifetime renting
A third of Australia’s population is in the rental market, with the figure even higher in capital cities and among young Australians, ( PwC).
In Sydney 70 per cent of 25 to 34 year rent, with 40 per cent of those considered ‘long-term’ renters, in the rental market for 10 years or more.
“If prices for homes do not come down then absolutely, renting will become the norm,” UM research fellow Matthew Palm said.
- Who does it affect?
“You look at the housing crisis and incomes for young people, and entry level jobs have not kept pace with housing prices.”
Tenants unions across the country have been advocating for increased protections for renters. The focus on changing laws that allow landlords to evict renters for no reason and with short notice needs addressing.
Dr Palm remains “optimistic” that governments will take up the cause of renters’ rights.
“It’s a basic issue of fairness. Renting is no longer a stepping stone, children are growing up in rental households,” Dr Palm said.
- How do we fix it?
“I would hope to see a renewed commitment to protecting those people in a bipartisan manner, but that remains to be seen.”
How can you side step this problem? Talk to us about how a Dual Income Property can help you with servicing your mortgage. Call 1300 171 000 or email [email protected]