The human cost of Australia’s housing crisis

Australia’s housing crisis is one you can’t fully comprehend — until you witness the conga line itself, writes Naomi Fryers.

AUSTRALIA is in the tyrannical grip of a severe housing shortage crisis.

It can be measured and seen from at-risk tenancies, to couch-surfing, homeless statistics, and tent towns established in regional and rural areas. Between the COVID-19 pandemic and local economies ravaged by droughts and floods, people are undoubtedly doing it tough.

In a first-world country, with disproportionate levels of wealth, homelessness rates today are indeed a blight on our nation. Further, the proverbial picket fence (or the do-not-enter gate) that divides the "haves" and "have-nots" is a real eye-opener.

Public housing wait and transfer lists can stretch to decades. Victorians can wait two solid years for placement, even if they fall into a high-priority category. Emergency accommodation is also woefully underfunded. Short-term residential placements are at capacity.

For those who look for answers in the private rental sector, not only is the cost exorbitant, but the chance of greater opportunity could well be a fallacy. The overall picture for all but the bourgeoisie can be summed up at best as "ill-managed", but realistically as brutally bleak.

The Great Australian Dream now belongs to landlords

With average house prices rocketing to over a million dollars, the Australian Dream has lost its democratic ethos and is fast becoming a dream for the rich.

In the current climate, private rental inspections around Australia are generally stressful. Perhaps hoping this time will be their lucky break, eager punters shuffle from foot to foot outside, open for inspections. So many will miss out and then perhaps miss out again.

One young hopeful in Melbourne’s outer east told Independent Australia that she had been on this "look-inspect-apply-reject rotisserie for six months". The strain of applying was costing her real time off work, further depleting her savings.

IA spoke to an agent who advised off the record that the first inspection generally gives 30-odd applicants the jump on those that follow. Further inspection dates are generally a mere formality to appease landlords.

Further, an applicant source who has recently been through the rental process at the high end of the market suggests that properties in the most sought-after areas have sparked bidding wars among hopefuls. Thus providing more proof that the old adage, "money talks", even when rental prices are clearly advertised. One would think such opportunist tactics would be actively policed out of practice, but egalitarianism does not fit housing's new definition of normal.

At some inspections, potential tenants are crammed into places you couldn’t swing a cat, while those exact places look quite ironically like the type of place a cat may be swung. Properties are hitting the market with grossly overgrown vegetation, where the entire dwelling is built on a slant. They, too, still pack a price tag for which hopefuls, out of sheer desperation, are willing to open their wallets.

At a few open for inspections, among the hopefuls, IA noted some familiar faces popping up, albeit increasingly desperate faces as time went by. Some had social workers in tow and several (entire families) would roll up quite obviously living from their cars.

At one inspection, a lady could be overheard sobbing and begging an agent about how she was disabled and had recently been evicted, without prospects. By now, one could launch a steadfast argument that property managers and agents should be getting emergency triage wages, because at several openings, more than a few people were dropping their bundles completely.

Why this Labor term may not see sufficient housing reform

On the back of Labor's historic win, the Government's biggest challenge will be trying to deliver on its promise to reform housing.

Speaking with those "lucky" enough to be in the rental market also came with some insights.

Dianne Lindner is a 54-year-old professional and although her family was happily settled in Melbourne’s outer east for well over a decade, they decided to make the switch to the northern suburbs, where you are afforded “a bit more house for your dollar”. Conceding that she had indeed been very fortunate in her hunt, securing a property early on and after just ten inspections, she also noted that even on the other side of town, rental inspections were attracting groups of more than ten applicants per viewing. She too spoke to poor property upkeep, steep prices and outdated images used in online marketing, not at all reflective of the current state of the property.

Chris Armstrong has been renting in Melbourne for the last 25 years and never found the circumstances to be quite so cutthroat and dire. He rents a three-bedroom property in Thomastown. However, his rent has soared over 20 per cent in five years, increasing his rent by in excess of $520 per month. This is without any major works or renovations. He noted that recent interest cuts are not flowing through to the relief of renters, suggesting a "hyperinflated market" could be at play.

Chris told IA:

"Governments need to more tightly regulate the real estate industry, particularly so in light of ongoing allegations of unethical conduct related to the REIV lobby board and builders, not limited to the CFMEU."

Perhaps a potential lack of infrastructure planning is another issue. There is also the notion of too few tradespeople, supplies and the expense of materials following the pandemic. But also, the markers of foreign investor ownership and vacant premises.

Whatever the reasons for the housing crisis, the blame game is of little service to Australia’s homeless population, without a roof or a generator in the middle of winter. This is particularly so, as the list of those at risk of homelessness in unstable accommodation continues to grow.

It is, of course, a sad irony that people are now thanking their lucky stars for being locked into leases and paying a premium for subpar properties.

It seems the idea of Australia as a truly "lucky country" may well be a notion only afforded to some. One only needs to look to rental inspections to realise that the system is setting up those most disadvantaged to fail.

In a country where our recently re-elected Prime Minister has continually stated, "no one should be left behind," there is so much more that needs to be done.

Naomi Fryers is an IA assistant editor and journalist living in Naarm. She is a former editor of Lot's Wife and The Good Men Project. You can follow Naomi at ‪@just-naomi.bsky.social‬.