New report shows true toll skyrocketing housing costs are having on Australia

Economic hardship has killed a fundamental Australian ideal revealing a nation that is “more isolated, less trusting” and “less accepting”.

The social impact of skyrocketing rents and interest rate rises has been revealed with social cohesion hitting a record low in Australia.

The Mapping Social Cohesion Report, found ‘social cohesion’ – which describes our sense of belonging, trust in government, financial security and happiness – is at its lowest point since the survey began in 2007.

Report author James O’Donnell from the Australian National University told news.com.au that growing financial stress and economic inequality are “impacting our personal wellbeing in a number of ways” and are the key drivers behind the fall.

The 2023 Mapping Social Cohesion report has revealed how financial stress is affecting Australian society.

He said that this year Australians are feeling “more isolated and less trusting” with a record high 84 per cent indicating the gap between rich and poor is now too large.

Dr O’Donnell said that the view that Australia is a land of economic opportunity where hard work can lead to a better life is slowly deteriorating; now just 63 per cent of Australians agree that this is true, down from almost 80 per cent a decade ago.

And it is young people that are bearing the brunt of this fracturing in social cohesion, with further evidence the generational divide is growing.

They may be smiling but the divides between generations are growing. Picture: Stuart McEvoy/The Australian.

Dr O’Donnell said the survey, which collects the views of 7,500 Aussies on topics like immigration, multiculturalism, financial wellbeing, government and community life, found a big split between the generations when it came to financial hardship.

He said 47 per cent of Aussies in their 20s, 30s and 40s are “just getting along at best”, with the percentage of people in this category falling away rapidly from age 45, and continuing to decrease among older age groups.

Under 45s are most likely to be affected by the rapid increases in rental price and hit to mortgages fuelled by interest rates rises, Dr O’Donnell said, and the survey shows the true impact these economic factors are having on the community.

The correlation between housing circumstances and financial wellness is evident.

“People feel more socially isolated when they’re under pressure financially and young people are less trusting and feel a lower sense of belonging than older people.”

He added that Australians are also becoming “less accepting of our diversity and multiculturalism” if they feel increased competition for housing and jobs due to migration.

A record low of 48 per cent of Australians feeling a great sense of belonging and only 37 per cent of us take great pride in the Australian way of life and culture.

Dr O’Donnell said Australians “should be worried” by the results and what they tell us about the state of our nation.

Originally published as New report shows true toll skyrocketing housing costs are having on Australia