Three in four Australians would have to cut back if their rent or mortgage rose by just $20 a week, with many going without food and medication, according to an Everybody’s Home survey.
The No Room to Move report captures survey results between July and September from 1,150 people. They include renters, home owners, and those experiencing homelessness or living in temporary housing.
“Housing stress in Australia is rife,” said Everybody’s Home spokesperson Maiy Azize.
“Australians are spending more of their income on housing with little or no buffer left when costs climb.”
The survey found 76 per cent would have to make sacrifices to their budgets and way of life if their rent or mortgage rose by $20 a week. Two in five (41 per cent) could not afford it at all (14 per cent), or would need to cut essentials such as food, medication, or bills (27 per cent).
Three in five (62 per cent) were in housing stress, spending more than 30 per cent of their income on housing.
If costs keep rising, people fear their mental health (37 per cent) and physical health (27 per cent) will get worse. Others worry they will be forced to move (27 per cent), be unable to retire or save (26 per cent), or become homeless (23 per cent).
People are already making sacrifices. Over the past year, the most common ways of coping were reducing energy use (48 per cent), limiting driving (40 per cent), and avoiding the doctor (38 per cent). Big life decisions are being delayed or abandoned, including saving for retirement (46 per cent), buying a home (35 per cent), further study (22 per cent), living closer to family (20 per cent), and changing jobs (16 per cent).
“Housing stress is making people’s biggest life decisions for them,” Maiy Azize said.
“People are putting off retirement, study, new jobs, marriage and leaving relationships. Many have given up on owning a home.”
The survey also looked at the condition of people’s homes. Nearly half (47 per cent) said their home was not warm enough this winter. They blamed poor insulation (63 per cent), being unable to afford heating (59 per cent), and draughty windows or doors (39 per cent).
Three in four renters (77 per cent) avoided asking for repairs. They feared a rent rise (72 per cent), or being unable to find an affordable home if forced to move (73 per cent). Three in five (59 per cent) said the condition of their home had made someone in their household sick (35 per cent), or they were unsure (24 per cent).
“Paying more in rent rarely means getting a better home in return,” Maiy Azize said.
“Australians are paying record amounts for homes that are often poorly maintained, freezing in winter, stifling in summer, or riddled with mould.”
Separate Australia Institute polling of 1,100 people in October looked at limits on rent increases. It found 55 per cent want rents to rise only in line with inflation or less. Twenty-three per cent want a temporary freeze, and 14 per cent do not support a limit. Support for a freeze or cap crossed housing types, with 94 per cent of renters, 73 per cent of mortgage holders, and 71 per cent of outright owners in favour. Seventy-five per cent want more public housing built directly.
Everybody’s Home says there are three solutions for governments.
“There are three solutions governments can take for renters: set minimum standards for rental homes, limit unfair rent increases, and build more public and community housing,” Maiy Azize said.
“Rental reforms can’t be done in a piecemeal way, they work best together. Minimum standards without rent caps price people out. Rent caps without minimum standards lock people into unsafe homes.”
To read the report, visit drive.google.com/file/d/19EJGeo2tQ9lTMbYbpzSL901D39FMPFWo/view.
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