Asset poverty linked to housing assistance programs
The Australian Housing and Urban Research Institute (AHURI) and RMIT Research Centre have released a study exploring how the asset poor status of older Australians helps to determine their demand for housing assistance.
Recent demographic changes, together with insecure employment circumstances in deregulated labour markets, innovations in housing finance and housing market volatility mean that wealth and debt positions are increasingly important in shaping the pathways into housing assistance programs.
Threats to housing wellbeing are particularly important for older Australians as they are less resilient than younger Australians when adverse shocks threaten their housing situation.
Results indicate that renters who have recently (since 2002) exited home ownership have a much higher likelihood of subsequently needing housing assistance (in 2006) as compared to the typical renter, who will have lived in this tenure longer.
Older Australians’ transitions out of home ownership are likely to be precipitated by traumatic events, such that the housing equity accumulated over their housing careers fails as a safeguard that can help steer these individuals away from housing assistance programs.
However the study did not confirm expectations that rising debt frequently precipitates entry into housing assistance programs. In fact they show that average levels of debt are low among our sample of older Australian renters.
Respondents managed their housing situation in various ways and with varying degrees of success. Property owners display more choices and can draw on the equity in their home to cope with financial difficulties.
Respondents generally held a critical view of government policies and generally raised concerns on the lack of public provision for the aged with respect to general welfare, providing subsidised housing and securing decent aged care facilities.
