‘Strangulated’ housing market cause for concern

Chief executive Paul McDonald said there are currently no rentals available to young people living on income support in metropolitan Melbourne.

“[Also] less than 1 per cent of all rentals available are accessible to families living on the Newstart Allowance,” Mr McDonald said.

“When a couple with two children can choose from only 13 affordable properties – in a market of 14,728 properties listed – because they can’t afford anything more on Newstart, it’s dramatic. It’s not acceptable.”

Mr McDonald said the snapshot confirms a “social crisis of epic proportions”. 

“This is another illustration that we have a strangulated housing market, there’s nothing there,” he said. 

“Even for those families where one parent works and one parent receives Parenting Payment, there’s only 5 per cent of housing stock in metro Melbourne and outer suburbia available to them.”

Mr McDonald has called on the federal government to commit to a national affordable housing summit. 

“While the debate about taxation and negative gearing sounds out, we need faster solutions,” he said.

“There’s no silver bullet here. We need to consider how we can deliver a range of low-cost housing stock, we need significant across-the-board commitment from government and we need that commitment now.”