social housing – Michmutters
Categories
Australia

Fears affordable housing project in Melbourne’s west will entrench isolation for new residents

Community leaders in Melbourne’s west have raised concerns a plan to convert a slice of land next to a freeway into more than 800 homes could result in social isolation for its new residents, unless major changes are made.

The proposed 41-hectare site in Cairnlea is just off the busy Western Ring Road and was part of the Albion Explosives Factory from the 1940s to the 1980s.

Development Victoria plans to build 840 homes on the site, 25 per cent of which will be affordable and social housing.

Graeme Blore has spent 17 years working in Cairnlea with communities dealing with social disadvantage.

He wants to see more social housing in the suburbs, but he is not convinced Development Victoria’s plans strike the right balance.

“It’s a vital issue, and really important to every community, but it actually needs to be done in a way that’s holistic, that embraces and enhances community,” he said.

A fence with a sign stating it is private property and dumping is prohibited
More than 800 new homes will be built at the Cairnlea site.(ABC News: Darryl Torpy)

One of his main concerns is the site’s proximity to late-night pokies venues on Ballarat Road.

The venues netted $80,000 per day in 2019-2020, according to Brimbank City Council data.

The council area, which covers Cairnlea and surrounding suburbs such as Deer Park and St Albans, has the highest pokies losses in the state — an average of $444,000 per day or $92 million per year.

“It has the potential to end up as a social housing ghetto, with a lack of opportunity,” Mr Blore said.

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Categories
Business

Australia rent prices: Real cause of property market crisis revealed

The cause of Australia’s worsening rental crisis runs far deeper than the economic pressures behind rising interest rates and soaring inflation, a prominent real estate expert has revealed.

Ray Ellis says the crisis will deepen without swift action from state governments on social housing and new build “red tape”.

Mr Ellis, former director of the Real Estate Institute of Australia and First National Real Estate chief executive, warned Australia has nowhere near enough homes to cater for its population, let alone accommodate migration increasing in the wake of the Covid pandemic.

He said state governments must urgently take responsibility for the immediate need for more social housing to remove pressure on the private sector.

“Between 1955 and 1964, state governments built about 140,000 social houses. We’ve never built that amount again,” Mr Ellis told news.com.au.

“There have been government incentives for landlords to become property owners and rent properties, and that has been the mainstay of any government policy.

“Social housing has become the responsibility of the private sector.”

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Significant lags on new developments largely hindered by “bureaucracy” also meant it was taking several years before construction could even begin.

“In the last 25 years, the provision of new land to build more houses by more private developers has been very slow and very cumbersome,” Mr Ellis said.

“It will take two years to go from the concept to the start of construction.

“Its just bogged down in bureaucracy by non-action or slowness in action.”

Slow-moving developments and underfunded and underresourced social housing were major contributors to the crisis, alongside a shift in attitude among landlords, Mr Ellis said.

He had observed landlords becoming frustrated at new regulations weighted towards tenants and immense pressure to provide rent so low that it would barely cover their costs.

“A landlord wants nothing more than a good tenant, so they will provide rent and services at a reasonable rate and comply with government legislation, but it’s not their responsibility to reduce their rent below what their source of income is,” he said.

Many landlords had become entirely turned off maintaining rental properties and as a result were offloading them, often to investors keen to make the most profit possible by using them as “zombie homes” such as Airbnbs.

“This is a genuine crisis. It doesn’t matter where you are in Australia, there is no rental stock available,” Mr Ellis said, adding that as “migration picks up again, it’s going to get even worse”.

“Australia is just not building enough houses for us to live in, let alone to be rented.”

Impact of ‘zombie homes’ on rental market

A zombie home is a property that is occupied only part of the time – such as a holiday house listed on Airbnb – that is not available to rent on a short or long term lease but can generate large profits for the owner.

Throughout any city there are “hundreds if not thousands” of zombie homes, especially in coastal areas, that are occupied one or two days a week, Mr Ellis said.

“There’s now too many occurring in most cities in Australia.”

The benefit for owners – aside from the financial element – ​​is not having the long-term commitment of dealing with renters, he added.

Zombie homes are widespread, with last year’s census revealing that during lockdown and while Australia’s borders were closed, there were more than one million unoccupied properties.

While it’s a win-win for landlords, renters are suffering from soaring costs, and have to put up with long queues of desperate prospective tenants lining up to inspect properties. This has forced some to live in their cars, a motel or caravan – even couch surfing – to keep a roof over their heads.

“Investors are putting their properties out for Airbnb, but it’s taking rental properties away from renters and that lack of … properties available to rent is driving demand and prices up,” Finder money expert Rebecca Pike told 7NEWS.com.au.

PropTrack’s latest rental report for the June quarter found the number of renters per property listed on realestate.com.au had risen 28 per cent year-on-year across capital cities, with Sydney and Melbourne experiencing the greatest increase.

The number of rental listings in Sydney fell 21 per cent in the last year. The largest declines in listings were recorded in Melbourne (-25.7 per cent) and Brisbane (-24 per cent).

Overall, the number of new listings coming on to the market was 13.8 per cent lower than the decade average in June.

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Categories
Australia

Welfare agencies hand out tents on the Atherton Tablelands as housing crises worsens

Most newcomers to Mareeba are enticed by wide open spaces and the promise of at least 300 sunny days a year but, like the rest of regional Australia, it too has a rental crisis.

For Guy Closset, the lure was the prospect of somewhere better to live than in a tent or beneath the condemned building of a disused school in Atherton.

“[My partner] was kicked out of where she was staying and I didn’t want her to be on the street by herself, so I ended up staying with her,” he said.

The couple had been in the Atherton Tablelands, which has one of the lowest rental vacancy rates in Queensland, at 0.2 per cent.

Mr Closset was already living precariously, having lost work when the pandemic broke out.

“I was staying with my mum but I was more couch surfing,” the experienced warehouseman and worker said.

“I was sleeping in the front room, you know, and then I met my partner.”

A crowded market

The move to Mareeba, a larger centre, has allowed Mr Closset and his pregnant partner to live more securely in a caravan at a tourist park, at a cost of $260 a week, while they search for a house.

But Mareeba’s rental vacancy rate is only marginally less tight – 0.3 per cent according to the Real Estate Institute of Queensland.

A man wearing a patterned shirt stands in front of a yard
Robert Larkin says it’s become increasingly difficult to find properties for those in need.(ABC Far North Queensland: Christopher Testa)

“A lot of properties that were rented are now being sold, and the new owners are living in them,” Robert Larkin of Mareeba Community Housing said.

Mr Larkin, a housing supervisor who works with those experiencing homelessness, said his organization had about 200 clients on his books at any one time.

He knew of one woman spending 60 per cent of her income on rent.

No emergency accommodation

The shortage of available rentals has made it harder for housing organizations to provide emergency shelter for those in need.

Many have resorted to handing out tents to families with nowhere to go.

Miriam Newton-Gentle, ministry worker and leader of the Salvation Army on the Atherton Tablelands, said the lack of crisis options magnified the problem in the rural area.

“One of the big things is we have absolutely no emergency accommodation,” she said.

“We’ve got small hotels and motels but they can’t take people long term, so when people are rendered homeless, they are absolutely homeless.”

A blanket has been left beneath a wooden staircase of a Queenslander-style building
A camp set up beneath an abandoned building in Cairns.(ABC Far North Queensland: Brendan Mounter)

Mr Larkin said caravan parks were traditionally the “go-to” crisis accommodation of choice for providers in the Tablelands as they were an “easy transition for people who are sleeping rough”.

“But right now, caravan parks are full because we have a lot of travelers coming through with their own camper wagons and so there isn’t as much available,” he said.

“This is probably as tough as it’s been.”

A shortage of homes

The closest crisis accommodation to the Tablelands is in Cairns, just a short drive away.

But Far North Queensland’s largest center is battling the same problem and places are hard to come by.

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