New analysis released today by Anglicare Australia has found that median rents are now unaffordable for households on the median income in all but 10 federal electorates across the country.
The Rental Divide compares median rents against median household incomes in all 150 federal electorates and paints a stark picture of a housing crisis that is increasingly affecting ordinary working Australians.
The analysis shows renters in many electorates are spending well above the commonly accepted affordability benchmark of 30 percent of income on housing, with some electorates recording median rents equivalent to 50, 60 or even nearly 70 percent of median household income.
Anglicare Australia Executive Director Kasy Chambers said the findings demonstrated that Australia’s housing crisis had spread far beyond people on the lowest incomes.
“This analysis shows the housing crisis is no longer something affecting only people on the lowest incomes. Even households on median incomes are being priced out of large parts of the country.
“In all but 10 electorates, the median rent is now unaffordable for a household on the median income. That should ring alarm bells in every part of politics.
“When ordinary working households are spending 40, 50 or even 60 percent of their income keeping a roof over their heads, something has gone badly wrong.
“These results show why the actions taken in this year’s Budget are so urgent. Renters need stability and security, which cannot be delivered when so many investors are chasing short-term capital gains.
“We need governments to stop relying almost entirely on the private market to solve this crisis. The tens of billions that have been lost to investors over the last three decades would have been better spent on public and community housing. These are the homes that people can actually afford to rent.
“These reforms recognise that Australia cannot keep subsidising wealth accumulation while millions of people struggle to afford the basics. This principle matters: governments should not be using the tax system to fuel speculative investment at the expense of everyone else.”