BRISBANE is experiencing its longest period of continuous house rent growth in history and Catholic peak body is concerned for low income and disadvantaged families.
Catholic Social Services Australia chair Francis Sullivan said economic pressures being faced by low income and disadvantaged Australians were at an all-time high and being force-fed by the relentless increase in housing costs.
The Domain Rent Report for the December quarter released this week shows increases for all major cities year on year.
In Brisbane, house rents surged to a new record high of $480 a week following a 4.3 per cent increase over the quarter, or $20.
This is twice the pace of growth recorded in the prior quarter and is the largest increase in 15 years.
Mr Sullivan said the situation was no better in other parts of the country with domestic and international borders opening up.
He said the return of immigrants and foreign students put more pressure on the rental market.
“While governments around the country have spent years focusing on house price affordability, it is now rental affordability and access that is going to become the biggest issue for the almost three million people in Australia living below the poverty line,” he said.
According to commercial real estate agency JLL’s Q3 2021 Apartment Market Overview released late last year rents across Australia are likely to increase by more than five per cent a year over the next five years.
Mr Sullivan said without a dramatic increase by governments in the social housing stock the marginalised, mentally ill and disadvantage faced a grim future.
“Beyond that, the Commonwealth and state governments needs to increase rent assistance, look at the impact of Air B&B and short term letting and consider putting in place rent and lease protections,” Mr Sullivan said.
There is also a record price gap between houses and units.
Domain reported this trend had no signs of slowing down – over the most recent quarter house rents soared almost twice as fast as units.
“Asking rents have risen at a faster annual pace for rentals with more bedrooms, both for houses and units,” the report said.
“This reflects the desirability for space from those able to work from home, but also provides an insight into demand demographics.”
