A growing number of Australian retirees risk falling into homelessness because they can’t afford to pay rent, said a new report aimed at lawmakers preparing to fight an election on housing and cost-of-living.
The rising cost of rent, falling rates of home ownership and inadequate rental assistance has pushed two thirds of retirees who privately rent into poverty, according to the Grattan Institute report. Half of retired people who rent have less than A$25,000 ($15,700) in their savings, it shows.
“Most older working Australians who rent do not have sufficient savings to keep paying rent in retirement,” the report said. “This problem is set to get worse.”
Higher interest rates, a dire shortage of new homes and booming population growth post-pandemic has worsened a housing crisis throughout Australia. As the Labor government touts its cost-of-living measures ahead of an election due by May 17, nationwide rents hit a new high of A$620 per week in the December quarter, REA Group Market Insight data show.
In Sydney, only 4% of single retirees relying on income support can afford to rent a one-bedroom home, while just 14% of Melbourne’s private rental market is accessible, according to the report.
The Grattan Institute is calling for a A$2 billion boost in overall government rental assistance, with A$500 million allocated to retirees. Further tightening of superannuation tax breaks, curbing negative gearing and halving the capital gains tax discount could fund the boost in spending, it said.