the Current Crisis
Source: SGS Economics and Planning Rental Affordability Index
By Kirsty Smith, Associate, David Lock Associates
This week has seen the release of the national Rental Affordability Index created in Partnership by National Shelter, Community Sector Banking and SGS Economics and Planning. The index confirms that there are more and more people stuck in a cycle of paying ever-increasing rents, with housing costs exceeding 30% of low income households' gross income.
Unsurprisingly, Sydney continues to be Australia’s least affordable city for rental accommodation (minimal green areas within the Greater Sydney Metropolitan Area as shown in the map below) but, Melbourne has seen the greatest decline in affordability since 2013.
It is acknowledged by experts in the field that this has been a problem in the making for the past 30-40 years and shows no sign of improvement with current and predicted housing supply unlikely to meet demand.
This is not a crisis that can be solved with Federal intervention alone. Innovation and collaboration is required between private and public, federal and state, developers, investors, financiers and philanthropists! This requires a long term strategy which needs to continue to develop the not for profit sector to increase the supply of well managed public and affordable housing.
We hope that NSW State Government continue to lead the way with their affordable housing strategies and welcome the inclusion of affordable rental housing targets in all new developments as stated in the Greater Sydney Commission’s vision – Towards our Greater Sydney 2056.
We look forward to understanding how this will be implemented on the ground in the coming months and look forward to being part of the collaborations required to address the crisis.