RENTAL HOUSING – AUSTRALIA

Gurner warns tenants of 15-year rental crisis

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Original article by Sarah Petty
The Australian Financial Review – Page: 9 : 14-May-25

Data from Cotalitys shows that housing market rents have increased by 39.9 per cent since March 2019. Rent payments now account for about one-third of many tenants’ income. Apartment developer Tim Gurner has warned that the nation’s rental crisis is likely to last for up to 15 years, due to the lack of sufficient new housing supply. He notes that vacancy rates are about one per cent in every state, while construction supply is at a 10-year low and population growth is at record levels. Gurner adds that high construction costs are the biggest problem for property developers.

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COTALITY

Middle-income Australians experiencing rental stress with a third of pay spent on housing, report shows

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Original article by Cait Kelly
The Guardian Australia – Page: Online : 15-Jan-25

Data from Corelogic shows that housing rents increased by just 4.8 per cent nationally in calendar 2024, compared with 8.3 per cent in the previous 12 months. However, CoreLogic economist Kaytlin Ezzy says that households on the median income were still spending 33 per cent of their pre-tax income on rent charges in September 2024. CoreLogic’s figures also show that rents have increased by 36.1 per cent nationally since the start of the pandemic. Maiy Azize from the Everybody’s Home campaign has called for rent increases to be capped and more government investment in public housing.

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CORELOGIC AUSTRALIA PTY LTD, EVERYBODY’S HOME

First-timers, low earners in housing crunch

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Original article by Nila Sweeney
The Australian Financial Review – Page: 31 : 17-Apr-24

A report from the ANZ Bank shows that the average proportion of income that is needed to service a new mortgage rose to 48.9 per cent nationwide in the March quarter; this compares with 43.1 per cent during the same period in 2023. The ANZ Housing Affordability report also reveals that it now takes an average of 10.3 years to save enough money for a house deposit. Meanwhile, ANZ found that the average renter must now allocate 32.2 per cent of their income to rent; this rises to 54.3 per cent for low-income earners.

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Greens are targeting tax breaks for investors to make buying a home affordable for renters, Max Chandler-Mather says

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Original article by Paul Karp
The Guardian Australia – Page: Online : 16-Feb-24

The Greens are hoping to use their balance of power in the Senate to get the federal government to cut back on tax breaks for property investors in return for them supporting its Help to Buy shared equity scheme. The Greens are hoping their policies will reduce house prices and therefore make buying a home more affordable for renters. Greens housing spokesperson Max Chandler-Mather contends that the problem with Australia’s housing market is that the tax system essentially forces prices up, often far in excess of wage increases.

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AUSTRALIAN GREENS

Labor leaders aiming for national plan to boost renters’ rights

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Original article by David Crowe
Brisbane Times – Page: Online : 9-Aug-23

The upcoming national cabinet meeting in Brisbane will discuss a proposal to increase the rights of rental housing tenants. Prime Minister Anthony Albanese will put the national plan to state and territory leaders next week, although each jurisdiction would ultimately determine their own rules based on a broad framework. Albanase will also seek other options for addressing the housing crisis due to a stalemate with the Greens over the federal government’s Housing Australia Future Fund.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS

Rental affordability crisis looms as borders reopen

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Original article by Michael Bleby
The Australian Financial Review – Page: 33 & 34 : 24-Nov-21

A report from JLL warns that demand for rental housing in Australia will exceed supply in the medium-term, as state and international borders reopen in the wake of the pandemic. Leigh Warner of JLL says there has been a lot of focus on housing affordability, but rental affordability is set to become a major issue. Demand for apartments in particular is expected to exceed supply in the next few years, with a seven per cent decline in pipeline of new projects during the September quarter.

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JONES LANG LASALLE AUSTRALIA PTY LTD

Rental affordability worsens as housing supply dwindles

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Original article by Nila Sweeney
The Australian Financial Review – Page: Online : 23-Jun-21

Suburbtrends has reported that 51 per cent of the 2,809 house markets it assessed require families to spend more than 30 per cent of their household income on rent, due to dwindling rental supply. It further found that there are 164 suburbs where families have to spend over 50 per cent of their household income to pay the rent on an average three-bedroom house. Suburbtrends director Kent Lardner says regions have been hit the hardest by rental shortages, while SQM Research MD Louis Christopher agrees rental supply is a big challenge for the regions.

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SUBURBTRENDS

Mortgage and rental stress worsen in May

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Original article by Nila Sweeney
The Australian Financial Review – Page: 40 : 9-Jun-21

Data from Digital Finance Analytics shows that 41.3 per cent of households in New South Wales were in mortgage distress in May, compared with just 38.2 per cent in April. Likewise, 56.8 per cent of households in Tasmania were in mortgage distress. The northwest Sydney suburb of Stanhope Gardens had the nation’s highest level of mortgage stress in May, at 91.5 per cent. Meanwhile, the Northern Territory was the only jurisdiction that did not record an increase in rental stress during the month.

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DIGITAL FINANCE ANALYTICS

Don’t worry if house prices fall, says Bowen

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Original article by Turi Condon, Ben Packham, Greg Brown
The Australian – Page: 1 & 6 : 16-May-19

Property Council of Australia president Stephen Conry says the housing market is "fragile", and it is not the right time for Labor’s proposed changes to the negative gearing regime. Real Estate Institute of Australia president Adrian Kelly warns that the prices of existing properties will fall if Labor implements its reforms, while the Housing Industry Association’s chief economist Tim Reardon says housing rents will rise. Meanwhile, shadow treasurer Chris Bowen has downplayed concerns that homeowners may find themselves in negative equity, arguing that they will only incur a loss if they sell.

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PROPERTY COUNCIL OF AUSTRALIA LIMITED, THE REAL ESTATE INSTITUTE OF AUSTRALIA LIMITED, HOUSING INDUSTRY ASSOCIATION LIMITED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, SQM RESEARCH PTY LTD

Tax Office to ramp up audits of landlords

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Original article by Joanna Mather
The Australian Financial Review – Page: 9 : 18-Apr-19

The Australian Taxation Office has signalled that it will audit about 4,500 taxpayers who claim deductions for rental properties in 2018-19. The ATO undertook 1,500 such audits in 2017-18, after random sampling of tax returns showed that 90 per cent of claims for rental deductions contained errors. Assistant commissioner Gavin Siebert says the ATO uses data analytics and information from a range of third-party sources in its audits. It imposed penalties totalling $1.3m for incorrect rental deductions in 2017-18.

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AUSTRALIAN TAXATION OFFICE