Grim reality of Aussie price crisis

Services helping struggling Aussies are at “snapping point” amid a possible funding shortfall of $73 million when a national support agreement comes to an end next year.

Homelessness Australia is urging the federal government to make a $450 million emergency investment in homelessness services as the country grapples with rising a cost of living crisis and rental prices continue to skyrocket.

The call comes as the latest Homelessness Australia report revealed there has been a 6.2 per cent increase in demand for already overwhelmed services from those impacted, amid declining funding across the country.

Homelessness Australia chief executive Kate Colvin said the federal government must address the housing and homelessness crisis in its mid-year economic outlook.

“Homelessness services are at a snapping point,” Ms Colvin said.

“We were already stretched but now we are overwhelmed.

“Extraordinary times demand additional resources.

“Instead we are staring down the barrel of funding cuts.”

The CoreLogic Quarterly Rent Review found in October this year rents have increased by 30.4 per cent since July 2020, with the median weekly rental value increasing to $588.

The rent spike has been most pronounced in Perth, Melbourne, and Sydney but other capital cities were also feeling the pinch.

The increase has the equivalent of $137 per week to the median rent cost, according to Homelessness Australia.

It comes as an additional 5,600 people each month between January and September this year sought homelessness assistance as a direct result of the housing crisis compared with the same period in 2022.

Ms Colvin said the ending of the National Housing and Homelessness Agreement in June 2024 presents a looming $73 million funding cliff.

“More Australians are confronting the risk of sleeping on a friend’s couch, pitching a tent or living out of a station wagon,” Ms Colvin said.

“The Government must step up and provide additional income support to help low income households manage the cost of renting, and a $450 million emergency investment in homelessness services to enhance the capacity of homelessness services to respond to growing demand.”

When the agreement was extended by a year, the federal government stated it was had advised the states and territories of its intention to terminate the agreement from 30 June 2024 and was working towards developing new arrangements.

Homelessness Australia’s recently made a submission to the National Housing and Homelessness Agreement, where it outlined a broad reform agenda, including substantial investment in social housing and support for domestic violence, disability, and mental health services, doubling Commonwealth Rental Assistance and expanding eligibility for it.

However, Ms Colvin said the current rise in homelessness demands immediate intervention by the federal government.

“This is not just a call for funding; it’s a call to save lives and restore dignity to many Australians facing the most desperate circumstances,” Ms Colvin said.

The call for more funding comes as comparison website Finder tipped that rental prices will continue to skyrocket in 2024.

Perth is forecast to have the steepest rental price climb by an average of 9.5 per cent.

It means the average minimum household income required to afford renting a house in Perth will be just over $108,000 or almost $95,000 for a unit.

It means the average minimum household income needed to rent a house will be $98,000 or $84,000 for a unit.

FORECASTED RENTAL PRICE INCREASES:

• Perth increase of 9.5 per cent — Average income of $108,231 needed for a house and $94,939 for a unit;

• Melbourne increase of 6.8 per cent — Average income of $92,548 needed for a house and $88,846 for a unit;

• Sydney increase of 6.5 per cent — Average income of $127,339 needed for a house and $114,420 for a unit;

• Brisbane increase of 6.5 per cent — Average income of $106,183 needed for a house and $92,333 for a unit;

• Darwin increase of 5.5 per cent — Average income of $117,035 needed for a house and $95,091 for a unit;

• Adelaide increase of five per cent — Average income of $94,640 needed for a house and $80,990 for a unit; and

• Hobart increase of three per cent — Average income of $98,193 needed for a house and $83,911 for a unit.