Aussies on lowest incomes priced out of rentals

Everybody's Home

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.

Everybody’s Home spokesperson Maiy Azize said: “People on the lowest incomes in Australia are being priced out of renting in every corner of our country.

“From those who rely on Centrelink payments to those working full-time on the minimum wage with no income support at all, there’s virtually nowhere in Australia for people on low incomes to afford a rental without falling into crippling housing stress.

“People on JobSeeker are being slammed by sky-high rents and payments below the poverty line – in many areas they’d have to spend all their income plus find more cash just to make the weekly rent.

“People on the lowest incomes are falling through the cracks - they’re becoming homeless, sharehousing well into their adult years, living in overcrowded homes, and unable to move out of the family home because there simply isn’t enough affordable housing for them. Even if they are willing to leave their communities, the pursuit to find and secure an affordable home elsewhere is dire.

“Minimal increases to these payments are falling short of what people actually need, being eclipsed by high rents, bills and the cost of essential goods. We need the federal government to raise Centrelink payments so they don’t fall below the poverty line, and set these payments so they don’t fall behind the real cost of living and housing.

“We need a huge boost to social housing – the shortfall today is 640,000 homes and within two decades it’s set to reach close to one million. This desperate need for social housing doesn’t go away by hoping the private market will make homes affordable. That is the status quo, and it is clearly failing.

“To make housing more affordable for more Australians, the federal government must increase Centrelink payments, protect renters from unfair rent increases, scrap unfair tax handouts to property investors, and create much more social housing.

“The time for real action on housing affordability has never been greater but it will only get worse without it.”

The ‘Priced Out’ report includes local and regional statistics.

Media contact: Sofie Wainwright 0403 920 301