Rental housing

Tell me about it …

A new Everybody’s Home report reveals that Australians on the lowest incomes are being priced out of renting in virtually every corner of the country, despite a rise in Centrelink payments and rent assistance.

The ‘Priced Out’ 2024 report shows people who primarily rely on Centrelink payments and the full-time minimum wage would be in severe rental stress across all capital cities and most regional areas.

The report applies Friday’s indexation increase to Centrelink payments and 10 percent rise to Commonwealth Rent Assistance (CRA) with indexation on top, with the findings underscoring the need for more social housing and for payments to reflect the cost of housing.  

Key findings include:

• Single JobSeeker recipients are facing acute rental stress, and would have to spend all their income or more on unit rents in most capital cities and 10 regional areas
• Those relying on the Age Pension, Disability Support Pension or working full-time on the minimum wage would likely be in severe rental stress in almost every part of the country
• Based on capital city rents, people on the Age Pension and Disability Support Pension would be left with $8 a day after paying rent, while a person on the minimum wage would be left with a little over $25 a day. A person on JobSeeker would be left with $0 and have to find $122 on top of their income.
• The most unaffordable areas outside of the capital cities include the Gold Coast, Northern WA, Sunshine Coast, and Wollongong, where people primarily living on Centrelink payments, or the minimum wage would have to spend at least half their income on rent.
   

• In short: The proposal includes prescribing standards to ceiling insulation, draught proofing, hot water systems, cooling and heating. 
• An academic says the rental standards would improve quality of life for renters and improve environmental sustainability.
• What's next? Victoria is consulting on the new minimum standards until July 1. 

Anglicare Australia executive director Kasy Chambers said the rental affordability crisis prompted the organisation to look at the experience of those in employment.

“Essential workers are the backbone of our communities, yet they cannot afford to rent. Our snapshot shows that more and more essential workers are being pushed into serious rental stress,” she said.

The snapshot used the internationally accepted measure of rent exceeding 30 per cent of a household budget to be considered as causing financial stress.

“Virtually no part of Australia is affordable for aged care workers, early childhood educators, cleaners, nurses, and many other essential workers we rely on. They cannot afford to live in their own communities,” Chambers said.

On a summer day last year, a group of real estate tech executives gathered at a conference hall in Nashville to boast about one of their company’s signature products: software that uses a mysterious algorithm to help landlords push the highest possible rents on tenants.

“Never before have we seen these numbers,” said Jay Parsons, a vice president of RealPage, as conventiongoers wandered by. Apartment rents had recently shot up by as much as 14.5%, he said in a video touting the company’s services. Turning to his colleague, Parsons asked: What role had the software played?

“I think it’s driving it, quite honestly,” answered Andrew Bowen, another RealPage executive. “As a property manager, very few of us would be willing to actually raise rents double digits within a single month by doing it manually.”

RealPage software is used to set rental prices on 4.5 million housing units in the U.S. A series of lawsuits allege that a group of landlords are sharing sensitive data with RealPage, which then artificially inflates rents. The complaints surface as housing supply in the U.S. lags behind demand. Some of the defendant landlords report high occupancy within their buildings, alongside strong jobs growth in their operating regions and slow home construction.

According to Choice, third-party platforms such as Ignite, 2Apply and Snug regularly require users to hand over excessive amounts of personal data including bank statements, references from five jobs and photos of children.

Samantha Floreani, program lead at charity Digital Rights Watch, said: "The sheer volume and type of personal information that renters are being compelled to provide creates unreasonable privacy and digital security risks.

"It's often very unclear who gets access to this information, and how long it will be kept for."