Victorian rents surged more than 10 per cent in the past year, with another double-digit increase intensifying the state’s housing crisis.
Council to Homeless Persons (CHP) has called for the state government to respond to the latest data by committing to build at least 6000 public and community dwellings each year for a decade, and increase investment in schemes to help renters in hardship.
New figures in the Victorian Department of Families, Fairness and Housing’s Rental Report show annual rents rose 10.2 per cent across the state.
Median weekly rent in the June quarter in Melbourne was $550 (up 10.9% annually), and $450 in regional Victoria (up 6% annually).
Additionally, the Victorian Government's Renter Services Review discussion paper, released last week, found demand for renter services had surged on the back of escalating rent prices, heightened eviction risks, and diminishing affordability.
“Economic challenges have expanded the need beyond traditional demographics and there is now a cohort of individuals who had stable incomes in the past, but now find themselves requiring support,” the report found.
Council to Homeless Persons Acting Chief Executive Officer Tom Johnson said the findings demanded action.
“Rents are increasing at breakneck pace, pushing more people to the brink of homelessness,” he said.
“Renters simply can’t afford the pace of these increases, which are the sharpest point of the cost-of-living spear.
“While the quarterly increase was lower, this comes after years of massive increases far outpacing inflation and wage growth.
“People once considered to have stable incomes are now being pushed to the precipice of homelessness.
“We need a minimum of 6000 new public and community homes built each year for a decade if we want to seriously address the rental crisis.
“Many at-risk renters aren't getting help because of soaring demand. That means people who could benefit from early interventions aren't getting help until their situation is critical.”
CHP is urging the Victorian Government to heed the warning from one of its own departments and boost investment in the Tenancy Assistance and Advocacy Program, as well as the Private Rental Assistance Program.
TAAP supports renters to resolve rental disputes, while PRAP provides support with rental set up costs and arrears.
“When so many Victorians can’t afford their rent, too many of us are looking at the growing reality of homelessness for our families. Programs like PRAP and TAAP stop that homelessness before it starts,” Mr Johnson said.
“There is an overwhelming case for more investment in these critical but underfunded schemes that help renters experiencing financial hardship or family violence.”
Contact details:
Matt Coughlan 0400 561 480 / matt@hortonadvisory.com.au