As the cost of living rises while wages remain stagnant, many Australians continue to struggle to survive, forcing many families into caravan parks, cars, and some even in tents.
The cost of renting has increased over 12 months in Australia’s capital cities:
• Brisbane: 15.2% increase in combined house and unit rentals
• Adelaide and Canberra: 14.3% increase in combined house and unit rentals
• Sydney’s: 19.1% increase in house rentals
• Melbourne: 11.5% increase in unit rentals
According to CoreLogic, an Australian property data provider, average rents rose 12.9% in the two years preceding March, 7 times more than the increase two years prior that. Subsequently, there are increased expectations for the Reserve Bank to raise interest rates for the next few years to stem inflation.
As the federal elections are imminent, different parties came up with their own solutions:
• The Greens promise to provide 1 million more low-cost homes over the next 20 years, as highlighted by Adam Bandt’s address at the National Press Club on the 13th of April
• The Labor Party promised 30000 “new social and affordable housing properties” over the first 5 years of scheme implementation
• The Coalition however stressed the importance of home ownership by motivating regional home construction.
This comes as household homeownership rates continue on a downward trend. Accordingly, the housing issue comes full circle as both home ownership and rentals become unaffordable, leaving many Australians stranded. For young people, this raises uncertainty about their future, as the cost of living becomes tough enough.