10 Ways to Fix Rental Crisis

Earlier this week, I appeared before a Senate Inquiry on behalf of the real estate industry looking into renters’ rights.

It is widely recognised that insufficient supply of housing is the main cause of rising rents. It’s a simply supply and demand equation; low supply plus high demand equals higher rents. Astonishingly, the main supplier of the rental homes - family investors – are ignored by governments and are actively vilified by the Greens.

Policies that disincentivise the suppliers of rental homes, such as rent caps or rent freezes, end up diminishing the supply and rents continue to rise. It is baffling that the Greens continue to oppose the Housing Australia Future Fund legislation which aims to supply affordable housing, but reckon imposing a two-year rent freeze (which sees investors sell) would improve long-term rental affordability.

Instead of playing politics, the Real Estate Institute of Australia has come up with a ten-point plan to help tenants:

1. Coordinate State and Territory bond agencies to track data on tenancy numbers and tenures.
2. Monitor rental pain points, particularly tenancies not professionally managed.
3. Develop a cohesive national industry-government program of awareness materials for renters.
4. Develop incentives for vacant properties and short stay rentals to bring them back to long-term rentals.
5. Commit to long term stamp duty reform; and offer immediate stamp duty waivers for purchases of rental properties in areas of high need.
6. Commission an immediate occupancy audit across Government owned and funded housing.
7. Develop a feasibility study for re-purposing non-residential real estate into residential housing.
8. Examine options for non-conventional rapid build homes in high areas of economic growth and housing need.
9. Implement the National Cabinet target to build 1.2 million homes by 2030 and have performance mechanisms that hold governments and industry accountable to achieve this.
10. Pass the Housing Australia Future Fund Bill.

Meanwhile, you can contribute to the debate by making a submission to the Inquiry. Just search, “Worsening Rental Crisis” and go to the parliamentary page.