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Sydney, AUSTRALIA – As Mary prepares to vote in Australia’s forthcoming national elections on Saturday, the persistent scarcity of budget-friendly housing is her primary concern.
The Housing Challenges Faced by Mary
For the past two years, the 59-year-old former postal worker has been residing in temporary accommodations in rural New South Wales with her daughter and her pet dog.
Mary’s income consists of a bi-weekly aged pension totaling 1051.30 Australian dollars (US$673) alongside seasonal gigs in hospitality and retail. Nevertheless, the average weekly rental rate of 560 dollars (US$360) for a residence or apartment is beyond her financial reach.
Identifying herself solely by her first name, Mary sought to apply for subsidized housing only to discover an extensive waitlist.
“Once rental expenses consumed our funds, and job opportunities were scarce, we found ourselves in this predicament,” Mary shared.
“Now, I am compelled to pay for storage to safeguard our belongings or risk losing everything. A circumstance I never imagined would be a part of my life.”
Mary’s Political Stance and Housing Policy Criticisms
Mary plans to support Prime Minister Anthony Albanese’s centre-left Labor Party, which is favored to reclaim power, though she harbors reservations regarding the primary political contenders.
“I will likely vote for Labor, though neither party has addressed this issue sufficiently. I consistently choose not to support the Coalition,” Mary explained, alluding to Peter Dutton’s conservative Liberal Party-National Party Coalition.
“I perceive them as lacking transparency and prioritizing the enrichment of their own accounts and those of their elite associates at the taxpayers’ expense, which many politicians evade.”
The Broad Implications of Australia’s Housing Affordability Crisis
Australia’s housing and rental prices are key topics in the election, with a heightened focus on the increasing cost of living.
In Australia, real estate is a significant national fixation, with some of the highest property values globally.
Sydney, the nation’s largest metropolitan area, ranks as the second least affordable city amongst 94 global urban centers in the latest Demographia International Housing Affordability survey, with a median price-to-income ratio of 12.8.
Financial Barriers to Sydney’s Housing Market
According to research by property advisory PropTrack, a household in Sydney requires an annual income of approximately 280,000 Australian dollars (US$180,000) to afford the median home price of 1.4 million Australian dollars (US$0.9m).
The Labor Party and the Coalition have both rolled out various policy initiatives to enhance housing affordability. However, advocates argue that neither has adequately addressed the underlying issues.
Policy Proposals and Criticisms From Both Sides
Labor promises to build 100,000 homes for first-time buyers and bolster financial aid, whereas the Liberals vows to:
- Train more construction apprentices
- Invest in critical infrastructure
- Permit younger Australians to access their retirement savings earlier to fund a housing deposit
Both factions have also targeted overseas buyers and immigration, with Albanese earlier in the year announcing a prohibition on foreign nationals purchasing existing homes for two years.
Economists indicate that insufficient supply is the principal catalyst of the housing dilemma.
At the onset of the COVID-19 pandemic, Australia possessed the lowest housing inventory per capita among developed countries, with approximately 400 homes per 1,000 residents according to the Organisation for Economic Co-operation and Development.
While housing supply has seen marginal improvements, it has been significantly surpassed by demand fueled by unprecedented immigration.
Demographic Shifts and Social Housing
Australia’s populace expanded by 2.1 percent in 2024, whilst the country’s birth rate plummeted to a 17-year low.
The construction of public housing, notably, has taken a back seat.
In 2023, more than 169,000 households were on the waiting list for public housing, as per the Australian Institute of Health and Welfare.
Struggles of Older Women in Securing Housing
Yumi Lee, Chief Executive at Older Women’s Network NSW, noted that numerous older women find it particularly challenging to secure housing due to their reduced pensions compared to male counterparts.
A 2021 KPMG report revealed that women aged 60-64 had, on average, 57,207 Australian dollars (US$36,608) less in their pension funds than men.
“We are often referred to as the ‘lucky country,’ but so many older women are compelled to choose between food, medicine, or rent, and it’s not a matter of luck, but rather neglect,” Lee stated.
Real-Life Impact: A Pensioner’s Story
Kris, a 71-year-old pensioner residing in the Blue Mountains near Sydney, recounted nearly losing her home last year following a divorce.
she was forced to sell the family home. Kris, who chose to use a pseudonym, shared, “I hear countless stories of similar hardships.”
Contributing Factors to the Housing Shortage
Experts identify various elements that have exacerbated the housing scarcity, including:
- NIMBYism: Residents’ opposition to local development projects.
- Tradesman shortage: Limited availability of skilled labor in the construction industry.
“Negative Gearing: A Contentious Issue
More contentiously, housing advocates blame this tax break, which permits landlords to deduct losses from investment properties, for inflating the problem.
Future Steps and Political Will
Maiy Azize, national spokesperson for Everybody’s Home, asserted that neither of the major parties appears willing to tackle the core issues. “This crisis has been decades in the making, and it will take decades to fix, but someone must step up and take the first steps,” Azize said.
Bernie Barrett, acting CEO of Better Renting, suggested that a significant stride forward could be the development of nationally consistent rental regulations by federal and state governments.
“Approximately 30 percent of Australians rent, yet our needs have been largely sidelined by politicians and policymakers,” Barrett observed, whose organization has rated Labor as ‘slow’ and the Liberals as ‘getting worse’ for their rental policy initiatives.
A Renter’s Perspective: Seeking Recognition
Andrea Leong, a 38-year-old microbiologist and renter in Albanese’s New South Wales constituency of Grayndler, conveyed feeling overlooked by both main political factions.
“In Australia, we have been led to believe that homeownership is the epitome of the Australian dream. Renting is often perceived as a temporary or unfortunate situation,” Leong remarked.
“I want the Prime Minister and all political factions to acknowledge that renting is a valid way of life.”