The hidden side of the Australian rental crisis

A shocking new report has revealed the impact the rental crisis is having across multiple generations of Australians.

The number of lower-income, older renters with limited superannuation will grow significantly over coming decades, warns a new report jointly undertaken by researchers from The University of Adelaide, University of South Australia, Swinburne University of Technology, and McMasters University.

And housing insecurity will emerge as a major issue for a rising number of elderly Australians renting.

“It’s not just younger people being affected,” warns Professor Baker. “The ‘rise of renting’ in Australia is a multigenerational phenomenon.”

The vast majority of Aussie renters (78 per cent) still aspire to own their own home one day, the report revealed. 

However, only 59 per cent of current renters believe this dream will actually come true in their lifetime. 

“Our survey found that three out of five private renters don’t think they will ever be able to afford to buy a home of their own,” says Professor Emma Baker of the University of Adelaide. 

“This shows a significant shift for Australian renters,” she explains.

“Whereas previously anyone who desired homeownership believed they would be able to move into that tenure, now more Australians are conscious that this dream may not be a possibility for them.”

As things stand, the researchers warn that Australia is “ill-prepared” for the growth in people renting for the long haul.

They suggested that policy changes, such as compensating renters for non-property investments through tax benefits, could help renters grow assets to help them through retirement.