New data reveals that without rent controls it could take more than 65 years for renters to save for a house deposit.
2025-01-10
greens.org.au
The Greens have renewed calls for a cap and freeze on rents as new independent analysis reveals that unlimited rent increases over recent years have eroded renters ability to save for a house deposit.

The independent analysis conducted by the Parliamentary Budget Office (PBO) looks at housing deposit affordability for an average renter, consistent with methodology used by the Reserve Bank of Australia, and finds that a cap and freeze on rents would drastically reduce the time it takes a renter to save for a deposit.

The PBO analysis outlines that if rents continue to climb at the rate they have in 2022-2023, it will take the average renter 65.6 years to save for a house deposit by 2030.

The PBO canvased different rent control policies and found that that time would drop drastically if a rent cap and freeze were introduced.

Rents have skyrocketed in the last two years, and while the increases have slowed in the last quarter, the annual increase is still more than twice what it was before the pandemic.

Even if rent increases slowed to their 10 year average, the analysis finds that renters who can only afford to save 10% of their income would still find themselves saving for 15 years.

Rental affordability is at a 20 year low, and renters need the government to step in now. Sixteen countries across Europe have some form of rent control, while the ACT has enjoyed it since 2019.

The Greens will centre rent reform as part of their policy platform in the lead up to the Prahran by-election as rents have skyrocketed in Prahran and 55% of the population are renters.

Quotes attributable to the Victorian Greens spokesperson for Renters’ Rights, Gabrielle de Vietri:

“It’s almost impossible to save if you’re renting right now - you’re probably struggling to pay for groceries let alone a house deposit. This study makes the assumption that renters can currently save, but without rent controls, the possibility of that ever materialising into a home of their own becomes a distant dream.”

“We only need to look back over recent years to know that as long as landlords are able to jack up the rent as much as they like - they will.”

“Right now, renters know that it’s basically impossible to save for a house deposit and this is proof that with a rent cap and freeze, we can change that.”

Quotes attributable to Greens’ candidate for Prahran, Angelica Di Camillo:

“Renters make up 55% of our electorate and people in Prahran know just how hard it’s become to be a renter here as prices have skyrocketed.”

“We’re in the middle of a cost of living crisis where renters are being hit hardest with every rent increase pushing people further and further into financial stress.”

“It’s clear that we need to cap and freeze rents so that people have a chance at finding any kind of stability or even actually owning their own home.”

They can chant the slogan as often as they want. It is still a stupid idea that will have the opposite effect to that intended.

There's plenty of cheap rent way outback.
What's the problem?
When has living in a city become a right?

Jasin wrote on Jan 13^th, 2025 at 9:59pm:

There's plenty of cheap rent way outback. What's the problem? When has living in a city become a right?

It hasn’t become a right but it is a necessary thing for most because there are few jobs outside of the cities and rents in prosperous country areas are not cheap.
Governments have been destroying jobs outside cities for years all in the name of economy. Example: The NSW Firearms Registry was on the far north coast but was moved to Parramatta for no good reason, because all of its business could be done by mail, telephone or internet.

So much for decentralisation.

Jasin wrote on Jan 13^th, 2025 at 9:59pm:

There's plenty of cheap rent way outback. What's the problem? When has living in a city become a right?

How can a school teacher or a nurse or a panel beater who runs his own business just pull up stumps and relocate to the middle of nowhere in order to find cheaper rental accommodation? This is not the answer.

A cap on rental increases - maybe that might possibly be doable. But a freeze on rent increases will simply see landlords sell their rental properties to avoid financial losses, forcing more people out of their rentals into an already small rental market where there are many more people looking for rentals than there are rentals available.

How about grandfathering negative gearing and capitol gains tax for 10 years and only allowing the benefits on new dwellings.....After 10 years investers would sell off their properties and build a new one to gain the benefit....It would add housing stock to the market and limit the amount somone can deduct from their taxes!!!

:-? :-? :-?

It's moronic policies like this that are the reason why so few people take the Greens seriously - or vote for them.

Sounds arse about, why don't they put a cap and freeze on property prices

Leroy wrote on Jan 28^th, 2025 at 9:10am:

Sounds arse about, why don't they put a cap and freeze on property prices

... or politicians' salaries?