Introduction

Abstract

Home ownership—the great Australian dream—seems to be increasingly out of reach for many Australians. Increasing house prices, especially in relation to wages, have long been on the front pages of newspapers and at the centre of policy debates about affordable housing. A host of policy measures—from shared equity schemes over government-backed loan guarantees for selected demographics to tax incentives for rent-to-buy schemes—aim to make it achievable for first-home buyers to purchase a home. And yet, home ownership rates over the life course have consistently dropped for successive generations since the 1970s (Australian Institute of Health and Welfare 2023). Long-term renting thus becomes a more and more common experience among younger Australians. But can the private rental market offer the security, stability and quality of living space that long-term renters need? If buying affordable housing is out of reach for many, are affordable rental properties available as an alternative? After a drop in rents in the first half of 2020, weekly rents have begun to increase again over the last two years; in particular rents paid by new tenants increased by 14 per cent over the year to February 2023 (Australian Bureau of Statistics 2023). This increase far exceeds overall inflation and is at least partially driven by a decrease in household size in the wake of the COVID-19 pandemic. With vacancy rates also at a historic low (Australian Bureau of Statistics 2023), renters with little protection against eviction or rent increases during a tenancy are left in a very vulnerable position. At the same time, given general increases in the cost of living and stagnant wages, particularly renters in low-income groups have few resources to deal with increasing rents or to compete for a new home in a tight market. Kath Hulse and Zoë Goodall argue that better protection against no grounds eviction, well-designed rent controls and minimum standards for habitability of a property are sorely needed—and their research shows that these do not lead to substantial disinvestment by property owners. Bruce Bradbury reviews the arguments for and against the Commonwealth Rent Assistance, and proposes that the maximum rent assistance payment should increase by a lot more than the most recently announced increase of 15 per cent, to support adequate housing consumption and to reduce the net cost of housing for low-income groups. The articles in this policy forum outline clear steps for reform and contribute important thoughts on a long-term, sustainable private rental sector. I believe our readership will benefit from and enjoythese insightful pieces.