Queensland housing affordability crisis to worsen
Queensland’s housing crisis is set to worsen as a key subsidy scheme established a decade ago to provide affordable homes winds up.
The National Rental Affordability Scheme provides rental homes 20 per cent below the going market rate to low and middle income households through a Commonwealth Government subsidy of $8,335.75 per dwelling per year along with a matching State contribiution of $2,778.58 per year.
In 2018, the incentives began to expire as they reached the end of their ten year lifetime. In Queensland, 9,100of the remaining 9,700Queensland incentives, housing an estimated 25,000 tenants, expire between 2021-24.
An analysis by affordable housing campaign group, Everybody’s Home finds Queensland is the worst affected State. Almost one third of all NRAS properties are in Queensland, andthe State also has elevenof the 20 federal electorates with the greatest number of subsidies expiring over the next four years.
Kate Colvin, the national spokesperson for Everybody’s Home, said the end of the subsidy came amid the most expensive housing boom in Australian history.
“Tens of thousands of Queenslanders rely on this program to make their homes affordable. Yet in the midst of the worst housing affordability crisis in Australian history, the Commonwealth is about to kick the legs out from under them.
“Everyone from the RBA to the IMF knows that Australia’s housing boom is out of control. It’s not just house auctions that are crazy. Families are turning up to rental property inspections only to find they have to compete with dozens of others seeking the same property.”
According to SQM Research, the asking rent of homesin Brisbane soared by 13.9per cent over the last 12 months. In Ipswich, it was 11.7per cent, Sunshine Coast27.1per cent, Cairns 8.6per cent, while the Gold Coast was 28.9per cent.
“The rent increases we are seeing across Queensland are simply eye-watering,” Kate Colvin said. “Restoring the National Rental Affordability Scheme is absolutely essential, but we also need a more enduring solution.
“A permanent and ambitious expansion of social and affordable housing would give people on modest incomes more choice and a better chance at housing stability. In a wealthy, advanced nation such as Australia, securing a home should not resemble survival of the fittest.”
Contact: Levi Joule 0481 112 074