Rentals hit ‘crunch point’

Rental stress remains a significant problem for Victorians. Photo: unsplash

By Eleanor Wilson and Cam Lucadou-Wells

Less than 100 affordable rental properties are available in Greater Dandenong, according to the latest State Government statistics.

The June Quarter 2022 Rental Report indicates affordable rental stocks have plunged 29.5 per cent – down from 139 in the June 2021 quarter to 98 in June 2022. There were zero affordable one-bedroom rentals.

The median rental price has increased from $350 to $380 in the same period, up by 8.6 per cent.

The rise in rental stress is a concerning constant across the state, with peak bodies and local governments calling for urgent action.

Ahead of the state election, the City of Casey called for an “urgent investment” to stem the shortfall of 6000 affordable and social housing dwellings, with priority projects for women and families experiencing family violence and/or homelessness.

Greater Dandenong Council is lobbying for the same, plus increased welfare payments and a bespoke crisis accommodation facility.

Chief executive officer of housing support service WAYSS, Wayne Merritt, said the South East is at a “crunch point” when it comes to affordable accomodation for residents.

“There’s a huge demand and we just don’t have the housing stock to fill that demand at the moment,” he said.

“We are 100 per cent supportive of the call out for more social housing and we would also like to see a dedicated allocation for the South East and on top of that an allocation for young people in the South East as we know they are often a missed out group when it comes to affordable housing.”

Mr Merritt said many residents who approach WAYSS are currently spending up to 75 or 80 per cent of their fortnightly income on housing, leaving very little for other living expenses.

“Most of the people we see are on some type of government benefit which then makes it harder to get into property because they might be seen as a less attractive applicant in the pool of 30 to 40 applicants, which is the numbers we are seeing now” he said.

“We support the Government’s $5.3 million investment for 12,000 new homes through Victoria’s Big Housing Build, but we know we need thousands more homes just in the South East to meeting the demand.”

Peak body Council to Homeless Persons (CHP) has called for all political parties to commit to 6000 new social housing properties each year for a decade.

CHP chief executive officer Jenny Smith agreed renters are on the front line of Victoria’s cost of living crisis.

“More renters are being pushed into homelessness because they can’t find a rental they can afford,” she said.

“Homelessness services are overwhelmed with people desperate for a home, and too many Victorians in urgent need of homelessness support are missing out.’’

“Government can end homelessness by providing more support to respond to people needing help, and by fixing the fundamental problem of lack of affordable rentals.’’