Renters left out in the cold as experts say Budget fails to address crisis

Despite the Government’s commitment for a greater number of build-to-rent projects, experts say there is a long way to go to tackle rocketing prices.

Federal treasurer Jim Chalmers presented his first budget this week. Picture: NCA NewsWire/ Dylan Robinson

Property experts have given their mixed reactions to this week’s Federal budget, with some warning it doesn’t go far enough to address the rental crisis.

According to the latest Proptrack rental report for the March quarter, the rental crisis has deepened in our capital cities, with total stock at historic lows and demand surging.

Rental prices across Sydney have risen between 28 and 49 per cent, leaving many residents struggling to pay the bills and international migrants unable to afford places to live.

Rental prices across Sydney have risen between 28 and 49 per cent. Picture: NCA NewsWire / Andrew Henshaw

The Federal government introduced a few measures to attempt to combat housing supply and affordability, with the Commonwealth Rent Assistance program increasing by 15 per cent via a $2.7bn injection.

InvestorKit’s founder and head of research Arjun Paliwal says that while giving low-income households extra funds is a step in the right direction, he’s concerned it may not be enough to cover the increased cost of rent.

“The short-term solutions that may negatively impact mum and dad investors and suppliers of investment properties were avoided in the budget, which is a good thing.
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Levels of available rental stock in Sydney have hit new lows. Picture: NCA NewsWire / Jeremy Piper

“However there is still a rental crisis that needs to be addressed. There needs to be more short-term public housing solutions, given how severe migration is coming through. Rents have increased substantially more than what people are receiving in benefits, and even though the new budget announced a $2bn increase to social housing, it is well below the mark of where we should be as a nation.”

Pictured is InvestorKit head of research Arjun Paliwal. Picture: Tim Hunter.

“In places like Sydney, where prices have risen significantly, this change is a minuscule one, which is why we are seeing a big lending jump for first time home buyers this quarter and the previous quarter.”

Experts have called for more short-term public housing solutions. Picture: NCA NewsWire / Jeremy Piper

Australia’s peak community housing industry body, the Community Housing Industry Association (CHIA) endorsed the government’s commitment to energy performance in social housing and electrification.

However its CEO Wendy Hayhurst warned of the long road ahead to tackle the significant challenges posed by the rental crisis.

“Rising rents are hitting household budgets hard. While the federal budget doesn’t tackle the crisis completely, it does have a path forward to fix it.”

“We commend the Budget initiative to make build-to-rent projects easier and more attractive through increased incentives for this industry.”

Originally published as Renters left out in the cold as experts say Budget fails to address crisis