Older Australians left to the mercy of the rental market

Rental affordability is one aspect of the cost of living crisis which is often stigmatised as, not just the fault of older Australians, but something which they aren’t affected by.

However, for older Australians and particularly those on a fixed income, the release of Anglicare Australia’s Rental Affordability Snapshot of over 45,895 listings paints a grim picture.

Of the listings, 162 rentals (0.4 percent) were affordable for a person on the Age Pension and 508 rentals (1.1 percent) were affordable for a couple on the Age Pension.

Both results are record lows in the Snapshot’s fourteen-year history, with Council of the Ageing (COTA) Australia now teaming up with Anglicare Australia to advocate for more social housing, in order to protect older people from housing stress.

“Older people have been left behind by the rental market,” says Anglicare Australia Executive Director Kasy Chambers.

“We’ve been releasing this Snapshot for ten years and this is the worst result we’ve ever seen. 

“We know why this is happening and we know how to fix it. Every year, Australia’s social housing shortfall gets worse and worse. We have a shortfall of almost 640,000 social homes. Many older people depend on these homes for security as they get older.

“Without action, older people will simply be left to the mercy of the market.”

In the 2023 Demographia Housing Market Affordability Index, statistics show that Sydney, Melbourne, Brisbane and Adelaide were all found to be less affordable than the New York housing market, relative to household income.

Similarly, Demographia found that of the rating scale for affordable housing, with a median multiple score of 3.0 considered ‘affordable’ and a rating over 5.1 considered ‘severely unaffordable,’ Australia had a median housing affordability score of 8.2.

“This [Anglicare Australia] Snapshot confirms what people have been telling us — that when it comes to finding appropriate, affordable, accessible rental accommodation, older Australians are doing it particularly tough,” says COTA Australia’s Chief Executive Officer Pat Sparrow.

“We’re already in a situation where many older people are having to make tough decisions about where to spend their money, which can include forgoing basics. The fear – and reality – of rental increases only exacerbates an already incredibly difficult situation.

“Finding a rental property is difficult enough for most people, but when you factor in some of the unique challenges such as mobility and accessibility needs that some older people face, it can make a tough situation feel near impossible.”

Last year, Talking Aged Care reported that the Anglicare Australia Rental Affordability Snapshot found that only 0.7 percent of rental listings were affordable for a person on the Age Pension, down from 1.1 percent in March 2020.