Home ownership is falling fast among poorer Australians who are approaching retirement. Between 1981 and 2021, home ownership rates among the poorest 40 per cent of 45-54 year-olds fell from 68 per cent to just 54 per cent.
Most older working Australians who rent do not have sufficient savings to keep paying rent in retirement. The poorest 40 per cent of renting households aged 55-64 have less than $40,000 in net financial wealth.
Commonwealth Rent Assistance, which supplements the Age Pension for poorer retirees who rent, is far too low.
The government has lifted the maximum rate of Rent Assistance by 27 per cent – over and above inflation – in the past two budgets. But even after these increases, a single retiree who relies solely on income support can afford to rent just 4 per cent of one-bedroom homes in Sydney, 13 per cent in Brisbane, and 14 per cent in Melbourne.
And the rents paid by people who get Rent Assistance have increased nearly 1.5 times faster than the maximum rate of the payment since 2001.