Geelong rental affordability crisis sinks to new record low, experts warn many face homelessness

Geelong’s rental affordability crisis has continued to hit record lows, with just one in every 12 homes on the market now considered affordable

Geelong’s rental affordability crisis has continued to hit record lows, with just one in every 12 homes on the market now considered affordable.

The situation is putting “more people on the brink of homelessness”, a leading expert has warned.

The latest Victorian Rental Report has detailed the region’s deepening housing crisis, with just 8.7 per cent of rentals in the City of Greater Geelong considered affordable in the June 2022 quarter – the lowest level on record for the city.

In 2002, 76.7 per cent of local properties were considered affordable. That dropped to 24.5 per cent in 2012 and 12.4 per cent in the June 2021 quarter.

Surf Coast Shire renters face an even more difficult market, with just 1.9 per cent of rentals considered affordable in the latest figures. In 2012, that number was 10.7 per cent.

Median rents throughout Geelong have remained at record levels according to the report, with all seven suburban areas in the document having highest-ever median rental prices – at a group average of $410 per week.

On average, Geelong suburban median rental prices grew by 7.89 per cent over the past 12 months, by 41.38 per cent over the past decade and by 173 per cent since 2002.

Council to Homeless Persons acting chief executive Kate Colvin warned housing was “at the eye of the cost-of-living storm sweeping Geelong and the Surf Coast”.

“Geelong’s housing crisis is putting more people on the brink of homelessness,” Ms Colvin said. “Family budgets are being squeezed by rising rents, and people are going hungry, missing doctor appointments or finding themselves unable to afford petrol or other essentials.”

“It is absolutely essential we see greater federal and state investment in social housing.

“We need the Victorian government to keep the Big Housing Build investment going beyond 2024. The federal government has to build far more than its commitment of 30,000 homes over five years if we’re to meet demand.”

Council to Homeless Persons acting chief executive Kate Colvin.

G21 Geelong Region Alliance chief executive Giulia Baggio said the rental report was proof the housing market was “completely out of balance” and warned there was no cheap or easy fix.

“Without big, game-changing policy, we are in serious danger of entrenching economic disparity and disadvantage in our region,” Ms Baggio said.

“Everything should be on the table for discussion. All levels of government should be open to reviewing the impact of negative gearing, capital gains tax discount, stamp duty versus land tax, freeing up state and commonwealth surplus land and streamlining the planning process.

“We need a diverse array of housing options. Creative thinking is key. Geelong is ripe for more high-quality density and urban infill.”

Originally published as Geelong rental affordability crisis sinks to new record low, experts warn many face homelessness