A recent report published by the Council of Australian Government’s Reform Council (COAG) shows that over three in every five of the nation’s lowest income earning households continue to pay more than 30 per cent of their income on rent.

 

Council Chairman, Mr Paul McClintock AO, said the third annual report on the National Affordable Housing Agreement shows that in 2009–10, 61 per cent of the lowest 10 per cent of Australian households by income were in rental stress. This is up from 49 per cent in 2007–08.

 

“We are talking about the Australians who can least afford the extra financial burden,” Mr McClintock said at the release of the report in Parliament House, Canberra.

 

“The more money these households have to spend on rent, the less they have for other basic necessities.”

 

The report also shows that for the lowest 40 per cent of households by income, the proportion in rental stress in 2009–10 was 42 per cent, an increase on the 37 per cent reported in 2007–08.

 

In 2009–10, affordability for renters was significantly worse in NSW than the national average, while South Australia and the ACT were significantly more affordable.

 

The report assesses the progress of governments toward meeting the objective of COAG’s National Affordable Housing Agreement: to ensure Australians have access to affordable, safe and sustainable housing.

 

In addition to the poor results for rental affordability, between 2008–09 and 2009–10:

  • fewer homes were affordable for low and moderate income households to buy
  • underlying demand for housing exceeded supply of new dwellings
  • the proportion of low income households in mortgage stress remained largely unchanged
  • the rate of home ownership remained the same.