South Australia has a ‘broken housing system’ with complete overhaul required, SA Government

The state’s housing system is “broken” according to the SA Government. With massive spikes of rental stress and other major issues impacting our most vulnerable, an overhaul is now underway. Here’s what happens next.

Growing numbers of South Australians are being forced into long-term rental because they cannot afford to buy, a comprehensive report reveals.

The report examining the state of homelessness and private and public housing in South Australia has prompted calls from the Housing Minister Minister Michelle Lensink for an overhaul of the “broken system.”

The State Government has established a taskforce, including members from the real estate and property industry and social services sector, to help address a raft of concerns raised in the report.

The Australian Housing and Urban Research Institute (AHURI) report shows private rental has grown four times faster than the state’s population, low income rental stress has grown rapidly and young people are staying at home longer.

Currently there is more than three private rentals for every social housing property — compared to an equal ratio 25 years ago.

It also found South Australia needs 100,000 affordable housing options — but currently only has 44,000 households who live in social housing.

Unmet demand — a combination of individuals unable to meet their minimum housing needs through market housing, plus those who will enter or remain in private renting but with insufficient income to avoid housing cost stress — is an estimated 56,000 households.

That figure is expected to grow by 4,000 households — to a total of approximately 104,000 households over the coming five years — representing around 15 per cent all households in the state.

Other major concerns in report by include

PRIVATE renters are, on average, experiencing a substantially large increase in housing costs relative to income compared to homeowners.

SOUTH Australians aged under 40 years are increasingly likely to rent privately.

FOR those aged over 40 years, there is a growing rate of mortgage indebtedness and a falling rate of outright home ownership.

THERE is a growing incidence of owning with a mortgage for people aged 60 and above and a corresponding decrease in outright home ownership for this group.

LIKELIHOOD of renting is rising for younger people and to a lesser extent those aged 40—59.

THERE are very few exits from public housing into either home ownership or private renting.

Ms Lensink said the report sheds a light on a need for significant reform in the state’s housing system.

“Given we face a range of significant and complex housing challenges it’s the right time to hit the reset button on a broken system,” Ms Lensink said.

“Over the next few months we will consult broadly with the community and housing sector to give as many South Australians as possible the chance to have their say in addressing our shared housing challenges.

“We need to focus on housing as being affordable, accessible, suitable for different types of

households and in the right location.”

There are three private rental properties for every one in social housing — it was equal 25 years ago.

Inaugural SA Housing and Homelessness Taskforce chair Gary Storkey said while South Australia remains relatively affordable compared to the eastern states, there are barriers and gaps within the current housing ecosystem that need addressing to ensure stability and sustainability.

“Modernising the housing ecosystem and enabling an affordable, appropriate housing supply that can adapt to market changes requires a long-term approach, supported by a long-term vision and strategy,” Mr Storkey said.

“Many of the problems identified have developed over decades and need a structured response across multiple sectors including finance, planning, services and support.”

A taskforce paper has already been provided to Ms Lensink guided by the AHURI report.

Issues it highlights includes

AROUND 6,000 people are homeless ranging from several thousand who are couch-surfing or living in overcrowded conditions to several hundred sleeping rough.

OLDER single people are the most common tenants in social housing but there is a growing group of younger people who need long-term help.

THERE is limited affordable housing to purchase and rent.

AROUND two thirds of people own their home but people are buying later and have mortgages for longer.

ONLY 21 per cent of homes are affordable to buy for the lowest 60 per cent of income earners.

THERE is a mismatch between demand and supply.

ONLY 4.5 per cent of homes are affordable for the lowest 40 per cent of income earners.

Ms Lensink said increasing access to appropriate housing and reducing homelessness through preventing people from falling through the cracks is a key focus of the Liberal Government and its partners.

“In this year’s State Budget, the Liberal Government committed to building 90 new homes, of which the majority will be sold as affordable housing, which is a good start to this process in challenging budgetary circumstances,” she said.

About 450 ageing and run down Housing SA homes will also be given much-needed maintenance with a $21.1 million boost.