A Nation in Transition
Chris Little, a father of two, has become accustomed to the constant cycle of packing and moving. In the past decade alone, he has lived in five different houses, each time forced to relocate due to landlords selling or their children moving in. Despite his efforts, saving for a deposit has proven impossible, leaving him and his daughters trapped in the rental market.
This scenario is becoming increasingly common in Australia. Census data reveals a nationwide rise in the proportion of renters across all age groups, except for those over 80 in Sydney. The Australian Housing Conditions Dataset paints an even bleaker picture, with nearly 50% of private renters believing homeownership is out of reach.
Professor Emma Baker, a housing researcher at the University of Adelaide, believes Australia is at a tipping point, transitioning from a nation of homeowners to one where renting becomes the norm for life. Her research suggests that renters are willing to pay more for security and stability, with an average willingness to pay an extra $127 per month for housing exceeding minimum standards and $77 to cap rent increases at 5%.
The Cost of Renting Report by Better Renting further highlights the challenges faced by renters. It reveals that nine out of ten renters are paying more than they were a year ago, with average rent increases exceeding 10%. This has created a stark social divide between renters and homeowners, with the latter benefiting from rising property values while renters struggle to keep up with increasing costs.
The report also exposes the precarious nature of renting in Australia, with half of respondents experiencing delays in repairs and three in five hesitant to raise issues with their landlords for fear of retaliation. Professor Baker attributes this to the ingrained perception of renting as a temporary housing solution, neglecting the reality of long-term renters.
As the number of lifelong renters grows, experts warn of potential implications for retirement policy. Professor Baker emphasizes the need to adapt policies to accommodate this shift, suggesting increased superannuation or welfare payments for older renters who are unlikely to achieve homeownership. Ben Phillips from the ANU's Centre for Social Policy Research advocates for increased rent assistance and expansion of public housing.
For Chris Little, retirement may seem distant, but the housing crisis looms large. He contemplates withdrawing from his superannuation to purchase a property, sacrificing future security for a stable home. His story reflects the growing reality of a nation grappling with a changing housing landscape, where renting is no longer a temporary phase but a way of life for many.