welcome everyone in this tutorial we

will understand the case study on

Australia rental

crisis the rental market in Australia is

currently facing a severe crisis marked

by surging prices and a scarcity of

affordable housing causing significant

distress for numerous individuals and

families this escalating situation not

only disrupts lives but also poses a

threat to the economic stability of the

nation it is crucial to comprehend the

underlying causes of this crisis to

identify effective

Solutions in this comprehensive case

study we will explore the multifaceted

reasons behind the Australian rental

crisis encompassing issues such as

inadequate housing Supply shifting

demographics and the impact of the

global economy additionally we will

examine a variety of potential Solutions

aimed at alleviating the

situation here is the news clip which

talks about the crisis do listen new

figures have revealed rental

affordability in Australia has now

reached its worst level on record New

South Wales is the least affordable

State the situation is even more

difficult for lowincome earners and it's

unlikely to improve anytime soon finding

a rental especially in Sydney has never

been an easy task but for some it's now

become virtually impossible the latest

rental report shows only around a

quarter of properties for rent in New

South Wales are actually affordable for

those earning the state's median yearly

household income of around

$110,000 renters earning $699,000 a year

can afford just 3% of the rentals listed

while those earning around $49,000 per

year have already been effectively

logged out of the market uh rents have

grown much more quickly than incomes

since the pandemic nationally rents are

up 38% which is twice the rate of

incomes in Sydney rents are $200 a weak

higher than they were at the start of

the pandemic when we got our place it

was 6 50 for a three-bedroom but then

over the years they went up to 720 and

now that's all the way up to 900 the

median weekly rent for a house in Sydney

is now

$750 for a unit $680 economists are

forecasting little relief anytime soon

adding more pressure to the government

to address this unprecedented rental

crisis single mother Tilly Eastwood says

the worst part of being priced out of

the rental market isn't living in a

garage with her three children it isn't

the absence of Windows for light or

fresh air it's not even the 150 plus

failed rental

applications it's the gnawing feeling

that she's letting down her kids I

started applying probably about

September so it's been about a year now

I even applied to ones that I didn't

want to live in and still got rejected

she says I've had moments where I've

just applied for a heap and then had to

give up for a while because it's kind of

like a kick in the face getting that

many rejections and the feeling like you

can't get a place to support your own

kids we don't use the kitchen we just

use what we've got downstairs so we stay

out of my friend's way I've never ever

experience this much issue trying to

find a place ever and I've been renting

for over 11 years in another interview

in the 8 months it took Michaela Roberts

to find a new home to rent in Mand

Western Australia she viewed more than

600 properties moved three times and

gave birth to a baby boy we were

applying for up to I would say probably

20 rentals per week and just constantly

getting

rejected we ended up having to rehome

our animals as well which was very sad

the 23-year-old says Michaela and her

partner were forced to move when the

owner of their home in the mandra suburb

of kenup decided to sell they've been

paying $300 a week and hoped to find

something in a similar price range they

then teamed up with a friend and

increased their budget to $400 a week it

was not enough it was absolutely crazy

we even saw quite a few rentals where

the back fences were missing there was

damage all through the house and you

were still expected to pay anywhere

pretty much from $350 up to $500 the

employment consultant says in graph you

can see I in yet more evidence of the

ongoing rental nightmare a graph

plotting rent prices has shown just how

deep tenants have had to dig to live

over the last three years dot now if we

look at the

numbers while annual growth in National

property values has gone up and down

since 2020 rent values have increased at

more than 8% each year in that period

over the past decade rent have outpaced

home values only three times and in

graph two you can see two of those rare

occasions have occurred in the last two

years 2022 and 2023 when the country has

been smack bang in the middle of the

rental crisis and the other

2018 it has been found that rent values

Rose a further 0.6% in December pushing

the yearly National annual increase up

to

88.3% over 2023 the biggest annual

increases were reported in Perth a

whopping

13.4% Melbourne 11.1% Sydney 10 .2% the

report said Hobart and Cambro were the

only two capitals where rent values

dropped last year at 3.5% and

1.9% a severe lack of rentals on the

market has helped drive up prices at the

same time Australians struggled with

Rising inflation and other cost of

living

pressures over the last 12 months

tenants have grown accustomed to turning

up to viewings to find lines wrapping

around the block while in this graph you

can see that in nsw in Victoria the

pandemic saw house rents in Regional

areas overtake capital city unit rents

for the first time in Victoria they

remain neck and neck while in nssw

capital city unit rents have just crept

past Regional asking rents for houses in

Queensland Regional asking rents are now

more expensive than in Brisbane for both

houses and units a trend not seen in

units since 2008 or in houses since

2013 one of the important question which

comes into the mind is how the pandemic

pushed prices

Skyhigh even before the pandemic rents

were Rising faster in the regions than

in many Capital Cities when the pandemic

hit in 2020 it supercharged this trend

sending Capital City rents plummeting

and Regional rents

skyrocketing commuting towns within a

couple of hours of the city coastal

regions and so-called lifestyle areas

have seen some of the steepest increases

in asking rents

among them are the Gold Coast wide Bay

and Sunshine Coast in Queensland

Richmond Tweed C Harbor and the Central

Coast in nssw bunberry and mandera in wa

and lro gips land in

Victoria now let's talk about the causes

of the rental crisis first is Student

Immigration to Australia the country is

experiencing a significant influx of

immigrants with net overseas migration

expected to reach 400,000 in 2022 to 23

and 315,000 in in 2023 to

24 this results in a net migration rate

of 5173 per 1,000 population a slight

decline from the previous year but still

substantial Additionally the number of

international students in Australia has

reached remarkable levels with

567,000 would be population growth with

more people to accommodate there is a

higher demand for rental

properties this demand coupled with a

lack of Supply results in higher rental

prices essentially when demand outstrips

Supply prices rise and this is precisely

what is happening in Australia's rental

market then comes Urban migration in

Australian cities urbanization

particularly in Australia continues to

fuel a significant shift in population

distribution

as rural residents migrate to cities in

search of better employment

opportunities education and lifestyle

amenities the pressure on the rental

market

intensifies statistics from the

Australian Bureau of Statistics indicate

that the nation's most populous cities

witnessed an annual growth rate of 1.8%

in 2018 to9 largely due to Urban

migration also foreign investment

foreign investors primarily from China

the United States and Canada have been

investing heavily in Australian

Residential Properties attracted by the

stable economic environment and high

property

yields this influx of foreign Capital

has prompted an increase in property

prices leading to a KnockOn effect on

rental

rates next reason is low wages wage

stagnation and fewer safety nets the gap

between wage growth and Rental increase

has been steadily widening with wages

remaining relatively constant the

proportion of inome that individuals and

families need to allocate toward rent is

on the rise this is particularly

problematic for those on low incomes who

are disproportionately affected by the

crisis low-income households are often

left with little after paying for rent

pushing them towards Financial stress

and

insecurity and also gentrification

gentrification a complex process of

urban neighborhood transformation

significantly contributes to the

Australian rental crisis

when wealthier people move into

traditionally lower income areas

landlords often seize the opportunity to

increase rents banking on these new

residents ability to afford higher

prices this phenomenon pushes out many

existing residents who can't keep up

with the rising costs and many more but

the real question is that how the

Australian government can help some of

the help could be done by increasing

housing Supply Zone Zing reform by

reforming zoning laws cities can

increase the number of areas where

residential development is permitted

reviewing taxation policies government

could offer tax reductions to developers

who commit to building affordable

homes implications of altering negative

gearing policies changes to negative

gearing policies could have significant

effects on the rental market regulating

short-term rentals regulating these

platforms like Airbnb might offer a

necessary

solution some cities worldwide have

implemented stringent regulations

including caps on the number of days of

property can be rented annually in

mandatory registration systems for

hosts prospects for Australian

regulations introduction of a cap on the

number of days of property can be rented

out short-term annually a system already

in place in cities like Paris and

Barcelona implementing wage policies and

strengthening social safety nets

addressing wage stagnation and economic

inequality is a critical step toward

resolving the rental

crisis and last but not least regulating

foreign investment countries like Canada

have introduced taxes for foreign buyers

to curb skyrocketing property

prices Australia could consider similar

measures to ensure foreign investment

doesn't exacerbate housing

unaffordability

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