Australia is approach a quagmire in the face of a homelessness crisis. It has been an onerous couple of years down under as the country has had to deal with one of the world’s most expensive rental markets alonsgide the coronavirus pandemic and eight consecutive interest rate hikes.
Australia has also recently witnessed its highest inflation in 3 decades with some of the worst floods in the nation’s history.
“We fear there is a tsunami of homelessness about to hit,” said Suzanne Hopman, the CEO of not-for-profit Dignity, which aims to support those experiencing and at risk of experiencing homelessness in Australia.
Hopman told Reuters that Dignity was preparing for what could easily be the busiest Christmas the organisation had ever seen, as people continued to flock to its shelters for a safe place to rest, get food, and use other essential services.
SGS Economics and Planning recently published its rental affordability index. The report detailed a decline in rental affordability in every state capital city in Australia without exception, with most metropolitan areas requiring the average single pensioner or single, part-time working parent to spend at least 50% of their income on rent.
Sydney, Australia is ranked as the seventh most expensive rental market globally even higher than Miami, Paris and Honk Kong according to Savills
Australia is also facing a plummeting rental supply with available rental options at a 20 year low as more Australian residents are unable to afford homes.
With the reopening of Australian borders this year, the influx of migrant workers has added unprecedented pressure on the rental market with increased competition devolving into bidding wars.
