Struggling Australian Youth Wrestle with Rental Affordability Dilemma
The Property Council of Australia issued a warning that Brisbane is currently below 3,000 apartments under construction this year.
A rental affordability crisis is affecting youth aged 16 to 17 years old who live in shared homes in major Australian cities, despite income support.
An analysis by Homelessness Australia reveals that teenagers in this age group sharing a property in Sydney are spending 94 percent of their income on rent, slightly lower than the 99 percent from the previous year.
In Brisbane, there has been a sudden increase in the portion of youth income spent on rent from 76 percent last year to 83 percent this year.
Homelessness Australia CEO Kate Colvin expressed concerns that current policy choices are leading young people towards homelessness, emphasizing the need for stability for their education and employment.
Homelessness Australia is advocating for a Youth Allowance of $80 a day and a 60 percent increase in Commonwealth Rent Assistance to aid with rental affordability.
Housing Industry Association Chief Economist Tim Reardon highlighted a 50 percent decline in apartment units starting construction since the introduction of additional taxes in 2017 in NSW and Brisbane.
The Property Council of Australia also warned of a decline in apartment construction in Brisbane, with expectations of fewer than 1,500 apartments next year and a potential drop to zero after 2025.
Constrained property listings are supporting home values in Adelaide, Brisbane, and Perth, according to the Property Investment Professionals of Australia (PIPA).
Adelaide’s property market is experiencing significant growth, with home values rising 12.6 percent over the past 12 months, while market conditions in Perth have peaked despite remaining strong.
PIPA Chair Nicola McDougall emphasized the need for government support to address the housing crisis, particularly in light of high levels of net overseas migration.
