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Improving Australian Renters’ Lives: A Path to Home Ownership

1 month ago
1 month ago

Improving the Lives of Renters in Australia

The Shift Towards Long-Term Renting

Australians are being forced to rent for longer, despite most saying they would prefer to own their homes for the long-term stability, ability to make modifications, and freedom to own pets.

A new report from the Australian Housing and Urban Research Institute (AHURI) has shed light on the shifting trends in homeownership and rental preferences across Australia.
While the majority of Australians aspire to own a home, the number of renters has increased significantly over the past decade, with a decrease in the percentage of renters transitioning to homeownership.

Renting, which was once seen as a transitional phase towards homeownership, has now become a long-term reality for many Australians, according to the report.

Barriers to Homeownership

The cost of homes in Australia remains the biggest obstacle for renters aspiring to buy a property, with nearly 60% expressing little to no confidence in ever being able to afford a home.

House prices have outpaced wage growth significantly, making homeownership increasingly unattainable for the average Australian worker.
Median wages have only increased by 24-30% over the past decade, while median house prices have risen at two or three times that rate in some regions.

Financial constraints were identified as the primary motivation for renting, with respondents citing affordability issues and the inability to save for a deposit as key factors.

Desire for Homeownership

Despite the challenges, the majority of renters (80%) still consider owning a home as their ultimate goal.

Quality of life factors, such as long-term security, housing conditions, ability to personalize living spaces, and pet ownership, were cited as driving forces behind the desire for homeownership.

The willingness to pay more for rental properties that offer above-standard amenities and lease terms underscores the importance of quality of life for renters.

Professor Emma Baker, the lead author of the report, highlighted the need for policies that recognize the growing population of long-term renters in Australia and prioritize improving rental living standards.

Addressing Tenant Concerns

Several states and territories have taken steps to address tenants’ concerns and improve rental conditions in recent years.

Laws allowing pets in rental properties have been passed in NSW, Victoria, Queensland, and South Australia, giving tenants more freedom and flexibility in their living arrangements.
Banning no-grounds terminations of leases has provided stability for renters, but challenges remain in ensuring long-term security and stability in rental housing.

Experts suggest moving towards a model of build-to-rent apartment blocks managed by corporate landlords or community housing sectors to offer more secure and professional rental arrangements.

Enhancing Complaints Processes

Greater regulation and oversight of the tenancy system are needed to improve the rental experience for tenants in Australia.

Dr. Chris Martin emphasized the importance of active regulation to protect tenants’ rights and ensure fair treatment in disputes with landlords.

State and territory regulators need to take a more proactive role in enforcing tenancy agreements and addressing issues such as property standards and rent increases to create a more balanced rental market.

Source: SBS News

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