Rental Affordability SNAPSHOT - Samaritans

RENTAL AFFORDABILITY

SNAPSHOT

SNAPSHOT 2022

Central Coast | Hunter | Mid Coast | Newcastle & Lake Macqaurie

RENTAL AFFORDABILITY

SNAPSHOT

An initiative of Newcastle Anglican

The Rental Affordability Snapshop is designed to highlight the lived experience of looking for housing while on a low income. It focuses on the Australian population who earn the least income - Commonwealth benefit recipients and minimum wage earners. Each year, Anglicare Australia agencies search local newspapers and real estate websites for accommodation across the country and assess the data in relation to the affordability and suitability of private rentals for people on minimum wage and income support Samaritans acknowledge the Traditional Custodians of the lands on which we work; the Awabakal Biripi, Darkinjung, Dunghutti, Gumbaynggirr, Kamilaroi, Wanaruah, Worimi and Wiradjuri nations.

We pay our respects to the Elders past, present and future, for they hold the memories, the traditions, the culture and hopes of Aboriginal Australia.

SNAPSHOT 2022

Central Coast | Hunter | Mid Coast | Newcastle & Lake Macquarie

CONTENTS Executive Summary...........................................1 Methodology........................................................1 Findings...............................................................2 Regional Overview.............................................5 Discussion & Policy Implications..................9 Conclusions.........................................................12 References..........................................................12

EXECUTIVE SUMMARY This is the tenth year Newcastle Anglican Samaritans have participated in the National Rental Affordability Snapshot. In partnership with Anglicare Australia, data is collected and tested on private rental properties’ suitability and affordability for people on low incomes without placing them under rental stress. This data is consolidated into the annual Anglicare Australia Rental Affordability Snapshot published in April. This year’s snapshot is released as the nation enters its third year of the COVID global pandemic; NSW faces with extreme flooding across many parts of its coast and amidst a Federal Election campaign.

The findings of this year’s Snapshot reflect the reality of the housing crisis that individuals and families are experiencing across the nation in accessing affordable and appropriate housing. In response to the results of the Rental Affordability Snapshot, we are calling on Governments at every level to work together to protect people from unfair rent increases, boost affordable housing and raise the rate of Jobseeker and related payments over the poverty line.

METHODOLOGY Every year Samaritans test if it is possible for people on low incomes to rent a home in the private market.

A snapshot is taken of the rental properties listed on realestate.com.au during one weekend in March. An assessment of property affordability and suitability is conducted against fourteen types of household compositions on low incomes.

1

Those households are: • single people receiving the Disability Support

• • •

Pension, Youth Allowance, JobSeeker and the Age Pension, or earning minimum wage single parents receiving the Parenting Payment or earning the minimum wage couples without children on the Age Pension, and couples with children on JobSeeker, Parenting Payment, earning the minimum wage, or a combination of these income sources.

The affordability of a property is calculated on the household income type using government data.

The figures are used to calculate the maximum affordable rent for each household type and compared against suitable properties listed for each type. The Snapshot is benchmarked to the internationally accepted standard that rent needs to be no more than 30 percent of a household budget to be affordable for people on low incomes.

FINDINGS On the Snapshot weekend of 19 March 2022, 1,510 private rentals were advertised across the Newcastle Diocese region. While a property could be affordable and appropriate for more than one household type, any individual property can only be rented out by one household type at any time.

To this end, we found that: • 70 (4.6 percent) individual properties were suitable for at least one household type living on income support payments without placing them in housing stress.

• 216 (14.3 percent) individual properties were suitable for at least one household type living on minimum wage without placing them in housing stress.

2

Affordable & Appropriate Rental in Newcastle Anglican (Samaritans) Region by household TYPE

1510 TOTAL

RENTALS ADVERTISED

70 HOUSEHOLDS on INCOME SUPPORT

216 HOUSEHOLDS on MINIMUM WAGE

Total number & percentage of rentals affordable & appropriate by household type.

JOBSEEKER PAYMENT 2 X ADULTS Couple, two children (one aged less than 5, one aged less than 10) AGED PENSION Couple, No children

(1) 0% (12) 1%

JOBSEEKER PAYMENT Single, one child over 8

(0)

PARENTING PAYMENT SINGLE Single, two children (one aged less than 5, one aged less than 10) PARENTING PAYMENT SINGLE Single, one child aged less than 5

AGED PENSION Single

(0)

JOBSEEKER PAYMENT Single

(0)

YOUTH ALLOWANCE Single in a share house

MINIMUM WAGE Single

(117) 8% (99) 7%

0% (57)

(2)

(0) 0%

0% MINIMUM WAGE + FTB A & B Couple, two children (one aged less than 5, one aged less than 10)

(0)

0%

0% YOUTH ALLOWANCE Single aged over 18

0%

4%

0% DISABILITY SUPPORT PENSION Single aged over 21

(0)

MINIMUM WAGE + FTB A & B Single, two children (one aged less than 5, one aged less than 10)

(3)

MINIMUM WAGE + Parenting + FTB A & B Couple, two children (one aged less than 5, one aged less than 10)

(11)

0%

1%

HUNTER

MID-NORTH COAST

CENTRAL WEST

Maitland Cessnock

CENTRAL COAST NEPEAN BLUE MOUNTAINS

Wyong Bateau Bay Gosford

Central Coast Population 345,857

Land area 1,6814 Sq/km

286

Total rentals

58

Minimum wage

3

Income support

HUNTER CENTRAL WEST

Murrurundi

MID-NORTH COAST

Gloucester

Muswellbrook Singleton

Nelson Bay

Maitland

Cessnock

CENTRAL COAST NEPEAN BLUE MOUNTAINS

Hunter Region Population 254,604

Land area 10,019 Sq/km

286

Total rentals

58

Minimum wage

3

Income support

6

HUNTER CENTRAL WEST Taree Gloucester Singleton

Foster-Tuncurry

MID COAST

CENTRAL COAST NEPEAN BLUE MOUNTAINS

Mid Coast Population 95,209

Land area 10,060 Sq/km

113 Total rentals

23

5

Minimum wage

Income support

HUNTER

MID-NORTH COAST

CENTRAL WEST

CENTRAL COAST

NEWCASTLE Lake Macquarie

NEPEAN BLUE MOUNTAINS

Newcastle & Lake Macquarie Population 382,537

Land area 871 Sq/km

674 Total rentals

116

60

Minimum wage

Income support

8

DISCUSSION & POLICY IMPLICATIONS In the region serviced by Samaritans and Newcastle Anglican, as is the case across Australia, renters on low incomes are being left behind and forgotten in the private market.

income support,

People on especially those who are out of work, have few options. We found that 1 (0.1%) rental was affordable for a person on the JobSeeker payment. This includes sharehouses. The shortage of affordable rentals will condemn people to make difficult decisions to keep a roof over their head.

People with disabilities face unique challenges in this market. Some will find that the rentals listed in this Snapshot don’t meet their needs, and for many people, the Disability Support Pension is too low to allow them to rent a home that does. A person on the Disability Support Pension could not afford any of the rentals advertised at the time of our Snapshot.

Families

out of work are also facing a dire situation. An out-of-work couple with two children can afford 1 (0.1%) rental. Single parents out of work face even tougher odds, with no properties identified as affordable and appropriate.

This helps explain why the rate of JobSeeker is such a critical factor in child poverty – one in six children now lives in poverty, with those growing up in households that depend on JobSeeker at much greater risk. i. Phillips, B. and Narayanan, V

young person

A on Youth Allowance looking for a sharehouse can afford none of the rentals advertised. Youth Allowance is the lowest of all government payments, and year after year, we find young people are at the bottom of the affordability ladder.

Of course, this Snapshot doesn’t tell the whole story. Although we look at the full-time minimum wage, we know that more and more people are working casually. Their plight is likely to be much worse than this Snapshot shows. Nor can the Snapshot consider the competition for each of these properties. In an overheated market, an affordable property can attract dozens of applications.

All of this is a wake-up call. What this Snapshot shows is that finding an affordable home in the private rental market is complete fiction for people on low incomes. It is past time for action to make housing more affordable.

Raising JobSeeker and related payments over the poverty line Across the Newcastle Anglican Samaritans region, people out of work depend on JobSeeker and other payments to get by. Many are likely to be renting, yet this Snapshot shows that the payment is so low that its trapping people in poverty and housing stress.

Raising the rate of JobSeeker and related payments above the poverty line will give badly needed relief to the people on the lowest incomes. It will allow them to afford the essentials they need to live their lives, and plan for their futures. Most importantly, it will give more people the benefits of a secure home.

More affordable rental homes for our region We are facing a major shortfall of affordable homes. The Australian Housing and Urban Research Institute has shown that we have a shortfall of social and affordable rentals across our region, and that number is expected to grow by 2036: • Newcastle and Lake Macquarie: unmet need 6,300 at 2016, increasing to 8,500 by 2036.

• Hunter Valley: unmet need 5,800 at 2016, increasing to 7,300 by 2036.

• Mid Coast: unmet need 2,500 at 2016, increasing to 7,300 by 2036.

With the private rental market failing so many people, we must invest in homes for people those need them most. Ending our affordable housing shortfall would be the most powerful way to tackle the rental crisis – and boost our regional economy.

The Federal and State governments must work together to end this shortfall.

10

w

More support for renters Commonwealth Rent Assistance is meant to help people on low incomes to afford their rent. But it has failed to keep pace with the cost of renting, which has been skyrocketing.

It means that people on low and middle incomes are paying so much in rent they can’t meet basic costs like decent food and medical expenses. And for people on some government income payments, like Youth Allowance and JobSeeker, it doesn’t kick in until their rent is already causing serious financial stress.

We need to reform and increase Commonwealth Rent Assistance so that it works for people struggling to pay the rent. That will give people in housing stress increased resourses for basic needs like food, health and access to their community.

A plan to end homelessness The number of people experiencing homelessness is growing every year because of the shortage of affordable housing. This lack of access to affordable housing is a major concern for older people, who are experiencing homelessness at record-high rates – at a time in their lives when they need stability more than ever.

People who are homeless need safe secure homes to help them get back on their feet.

Being stuck indefinitely in temporary emergency accommodation is not the answer.

CONCLUSION This year’s Rental Affordability Snapshot shows that the private rental market is failing people on low incomes. Some people may have shelter or accommodation, but there is very little on the market that could be a place to call home.

The key to making housing more affordable lies in two factors: making sure everyone has a decent income, and providing enough affordable rentals for the people who need them.

It is clear that we must invest in affordable housing.

The shortfall of affordable rentals in our region must be tackled. The sobering results of this Snapshot show that this investment is truly urgent.

Samaritans is also calling for an increase to the rate of JobSeeker and other payments. This will help people on the lowest incomes find a secure home.

We also need to give more support to renters, and make a real plan to tackle homelessness.

Nobody should be forced to make impossible sacrifices just to keep a roof over their head. It’s time to take real action, and make sure that everyone can have a place to call home.

References i. ii. iii.

Phillips, B. and Narayanan, V. (2021) Financial Stress and Social Security Settings in Australia. Australian National University Centre for Social Research and Methods.

Lawson, J., Pawson, H., Troy, L., van den Nouwelant, R. and Hamilton, C. (2018) Social housing as infrastructure: an investment pathway, AHURI Final Report 306, Australian Housing and Urban Research Institute Limited, Melbourne, http://www.ahuri.edu.au/ research/final-reports/306, doi:10.18408/ahuri-53143001.

Australian Bureau of Statistics (2020) Data by region. Retrieved 27 April 2022.

An initiative of Newcastle Anglican

12

RENTAL AFFORDABILITY

SNAPSHOT

An initiative of Newcastle Anglican