A property listing that seemingly emerged from a horror movie unveiled the stark reality of the escalating rental crisis in Australia. The former $300-per-week residence in Dandenong, Victoria was not only profoundly besieged by mould, but also bore the scars of a past fire event.
Rachel McQueen, a celebrated figure in the field of real estate, lampooned the appalling state of properties that prospective tenants are reluctantly compelled to consider due to the crisis. Taking to her video series, “Real Estate with Rachel” on TikTok, she conveyed her utter disapproval of the distressed reality faced by those who resort to ‘affordable’ rentals. “It’s about time for introspection if you deem these circumstances suitable for individuals seeking affordable accommodation,” she advised, while lamenting “The real estate system is obstructed by numerous hurdles.”
The property in question, previously advertised for rent on Facebook Marketplace, was defined by a degree of dilapidation that was shocking even by the most liberal standards. However, the advertisement has since disappeared, fueling speculation that perhaps an individual in dire straits already snatched up the ‘opportunity’.
Jaws dropped and many onlookers expressed bewilderment at the steep $300 weekly rent, suggesting it would be an appropriate sum only if the venue was being rented out as the set for a horror flick. Others empathized with those left with no other choice given the worsening rental crisis, reinforcing the sad truth that many will be drawn inevitably towards such stark and desperate measures.
The market’s stiff competition is exacerbated by the low vacancy rates in major cities and an influx of temporary visa holders. In July 2023 alone, Australia welcomed approximately 131,640 international students, an almost twofold increase compared to the previous year, amplifying the deplorable rental housing scenario.
In an attempt to counter the crisis, the Australian federal government has embarked upon an ambitious plan to construct 30,000 affordable homes over the next five years. This initiative is, however, being criticized as a mere scratching of the problem’s surface.
Daniel Wild, the Deputy Executive Director of the Institute of Public Affairs, chose stronger words to censure the government’s approach, deeming it gravely inadequate. As per Wild, the target of 6000 houses per year for five years falls drastically short of the projected deficit of 252,000 homes.
Many are imploring the government to consider additional alternatives to tackle the crisis, such as rental caps and strengthening regulation of short-term rental providers. The notion of these measures is widely debated, as short-term letting platforms are already under scrutiny. For instance, come 2025, short-stay accommodation providers in Victoria like Airbnb and Stayz will be subjected to a 7.5% levy on each booking.
While pro-tax advocates view this as a means of generating funds for more social housing, critics dismiss the tax as an overreach and question its efficacy in addressing the housing predicament. Therefore the underlying question remains: how to navigate towards a more equitable resolution for the rental crisis in Australia?
