Anglicare’s 2024 Rental Affordability Snapshot, published today, shows that welfare recipients and minimum wage earners cannot afford to rent in Canberra, or elsewhere in Australia.
The Snapshot stated that the current state of rental affordability nationwide was “the worst it has ever been”.
The Snapshot surveyed 45,115 rental listings on the weekend of 16–17 March. It found that the national vacancy rate is at a historic low of 0.7 per cent; listings are at a record low of 45,115; and although rental increases have slowed to 8.5 per cent, rents are still $200 a week higher than before the pandemic. Across Australia, a single person receiving JobSeeker payment could only afford three rentals; a Youth Allowance recipient could afford none; and a single person on the Disability Support Pension or the Age Pension could afford 0.1 and 0.2 percent of properties.
None of those rentals were in the ACT, where a single person on minimum wage or a couple with two children on minimum wage and receiving a Parenting Payment Partnered could only afford 0.2 per cent of rentals (the lowest rates in the country).
“The stark reality facing people on low incomes is that they will not find an affordable place to live, that families will be evicted because another rent increase will push them beyond the limit, and for those fortunate enough to find a home, they will be forced to choose between putting food on the table and staying warm this winter or keeping a roof over their head,” Anglicare said.
Dr Devin Bowles, CEO of the ACT Council of Social Service (ACTCOSS), said the results were “morally shocking, but not surprising”.
“It’s unacceptable that in our prosperous city, a growing cohort of people cannot find affordable rental options. This report underscores the urgent need for comprehensive action.”
ACTCOSS and ACT Shelter have called on the government to expand social housing to 10 per cent of Canberra’s housing stock by 2036 – “a critical step toward addressing this crisis”, Dr Bowles said.
“The findings show that the long-term housing policy settings have worsened the situation over many years. We must recognise that housing unaffordability is inherent in the market, and reform must be dramatic rather than tinkering at the edges. If we genuinely consider housing a right, Governments must fund public and community housing. … Everyone deserves the dignity of a safe and secure home.”
ACT Shelter CEO Travis Gilbert blamed half a century of housing policies that prioritise housing’s rôle as an asset class for people on high incomes – developers, investors, and owner-occupiers – to generate and transfer wealth, “at the expense of housing’s role as an enabler of better health outcomes, civic and economic participation, and a stable foundation for a contributing life for all”.
“Canberra’s homelessness workers see what housing market failure looks like, they know its names and recognise its faces,” Mr Gilbert said. “Next weekend, Canberrans will learn which candidates will represent us in the next assembly. With solid housing commitments on the table from party and independent candidates, I commend Anglicare for tabling another sobering snapshot of the lived reality of renting privately that should be required reading for any anyone with a conscience to act decisively to that lived reality and break the cycle of poverty.”
ACT Greens
The ACT Greens propose building and buying 10,000 public homes over the next decade, which they say is the biggest housing affordability initiative in the history of self-government. They would cap rent increases at 2 per cent, and establish a rental commissioner to enforce fair rental practices.
Deputy leader Rebecca Vassarotti criticised Laborand the Liberals for ignoring renters and prioritising “private profit for few over meeting the housing needs of every Canberran”. She said that only the Greens would make public housing available to retail workers, teachers, and even construction workers struggling to afford rent.
Yerrabi member Andrew Braddock said that more housing was needed urgently in Gungahlin, where the Greens say their commitment would deliver 1,743 homes.
“In Gungahlin, I’ve heard from many young people who have said another rent increase would push them over the edge,” Mr Braddock said. “It’s simply no longer tenable to continue business as usual while people are struggling at the bottom of the rental market.
“Even for a Canberran on the average wage, a quick search on AllHomes shows that there are only four homes in Gungahlin that are affordable to rent. I’m not going to stand by and let this be the reality facing young people this election.”
Independents for Canberra
Independents for Canberra candidate Riley Fernandes says she has first-hand experience with the housing crisis, having struggled to find affordable housing while living on a single-parenting pension and working casually.
“The rental market is overwhelmingly competitive, with more than 85 per cent of rentals considered unaffordable even for dual-income households,” Ms Fernandes said. “Meanwhile, crisis accommodation services are often forced to turn people away due to increasing demand.
“My personal experiences, including being legally considered a ‘couch surfer’ for the first 10 months of my daughter’s life and waiting for public housing since September 2022, shaped my decision to run for Independents for Canberra.
“We need serious investment in social housing to ease the strain on our rental system, and we need to significantly increase funding for community organisations to meet the existing demand for crisis accommodation services.”
Strong Independents
Peter Strong AM (Strong Independents) said: “We have had so called progressive parties in government for 23 years and the groups they claim to represent are the ones being left behind. This shows that the longer any party is in power, the more they lose sight of why they exist. Instead, they always end up focusing on the needs of their friends, normally wealthy powerful friends. A crossbench with a minority government is the only way we can get Canberra back to what it should be – a progressive community showing how all people can benefit from a fair society and a professional well-administered government.”