Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

How long can ‘JobKeepers’ afford their rent?

By Cameron Micallef
14 April 2020 | 1 minute read
Eliza Owen

Following a raft of fiscal changes to protect businesses and workers, the focus has shifted to housing, with landlords and tenants urged to work together in a difficult financial situation.

To support working Aussies, the government has announced a $130 billion package designed at keeping people in work called JobKeeper, after previously announcing social support of $1,100 per fortnight under the JobSeeker allowance.

According to CoreLogic’s head of research, Eliza Owen, the government’s policies could soften the potential financial disaster some Australians are facing.

“The JobKeeper subsidy may also see fewer households fall into housing affordability stress. Housing affordability stress is a situation where households spend more than 30 per cent of income on housing costs, such as rent,” Ms Owen said.

In fact, according to the data, the payments may actually increase the number of households that are affordable, taking some of the financial burden off everyday Aussies.

“Flat payments are proportionately beneficial for renting households where rents are cheaper, such as in regional Tasmania and South Australia. Incidentally, these are areas that may be more severely impacted by the economic slowdown in terms of the concentration of the labour force in agriculture, food service, tourism and accommodation,” Ms Owen said.

Ms Owen also noted that self-isolation’s impact on discretionary spending could help make properties more affordable as the cost of discretionary spending falls.

“But even with the relatively small portion of rental properties being affordable elsewhere, it is likely that current social distancing measures would see less discretionary spending, enabling a higher portion of income to be used in servicing rent,” Ms Owen said.

A final takeaway from this data may be that now is an opportune time to explore more social and affordable housing supply. As well as added benefits to the construction sector, the government could look to create housing supply that compliments the payments being offered to renters.

How long can ‘JobKeepers’ afford their rent?
Eliza Owen reb
lawyersweekly logo

ABOUT THE AUTHOR


Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.