Rental-Insights-A-COVID-19-Collection - Flipbook - Page 11
RENTAL INSIGHTS:
DETERIORATING
RENTAL AFFORDABILITY
There were also small gender
differences, with women represented
less strongly in the retrenched group
(52% identified as female, in comparison
with 59% in the not- retrenched group).
The figure on the right depicts these
patterns: relative to not-retrenched
renters, retrenched renters were
more likely to be struggling with bills
(45% versus 22% for not-retrenched
renters); and accumulating debt (33%
versus 14%). Their physical and mental
health was also more vulnerable with
the retrenched renters more likely to
be skipping meals (35% versus 14%)
and experiencing increased anxiety
levels (56% versus 49%). The figure also
captures worrying long-term trends in
rising wealth inequality for retrenched
renters—46 per cent had withdrawn
superannuation funds (relative to 17%
for not-retrenched renters) and 69 per
cent had spent their savings (relative
to 38% for not-retrenched renters).
What is the relevance
to Australian policy?
The socio-economic ramifications from
the COVID-19 crisis will endure for many
years to come. Understandably, the
current economic policy focus is on
protecting against COVID-19’s short-term
impacts—including via fiscal stimuli to
boost output and employment in 2020.
Short-term policies will not, however,
ameliorate COVID-19’s impacts in
increasing income and wealth inequality
over the long term. Extensions to job
protection policies, including JobKeeper
and JobSeeker, also need to be carefully
considered, alongside government and
regulatory support for renters facing
rent rises, eviction and/or poor housing
conditions. Increased public investment
in good quality social housing will also
help to reduce impacts for vulnerable
groups. Overall, having a diverse set of
economic policies will help to maintain
living standards, livelihoods, health and
wellbeing—policy goals that should
be regarded as essential to ensuring
that the long-term impacts from the
COVID-19 crisis are not unendurable
for vulnerable groups.
10
Overall, having
a diverse set of
economic policies
will help to maintain
living standards,
livelihoods, health
and wellbeing …
Retrenched versus non-retrenched renters
80%
Retrenched
69%
70%
Not retrenched
60%
50%
56%
46%
49%
45%
38%
40%
35%
33%
30%
22%
20%
17%
14%
14%
Increasing
debt
Skipping
meals
10%
0%
Super
withdrawn
Savings
spent
Struggling
with bills
Increased
anxiety
