Rental-Insights-A-COVID-19-Collection - Flipbook - Page 22
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RENTAL INSIGHTS:
HOUSEHOLDS
UNDER STRAIN
HOUSEHOLDS UNDER STRAIN
Emma Power
Western Sydney University
Low-income older
renters are lonely and
struggling
financially
XXX
XXX
Key findings
Why is it important?
Older, very-low income
renters8 are struggling
financially.
People unable to afford basic essential
expenses like food are likely to
experience health and wellbeing costs
and be more dependent on charities like
local foodbanks to make ends meet.9
During COVID-19 these services have
faced disruption, closing for periods,
and placing vulnerable households at
high risk.
More than 1 in 5 find
it difficult to meet their
essential costs after rent
is paid, including food,
bills and clothing.
Nearly 2 in 3 are struggling to pay for
non-essential costs like social activities,
and over three-quarters do not have
enough money to save or invest.
Most (85%) have a government pension
or allowance as their main income.
Of these renters, 2 in 5 reported
escalating loneliness as a result
of COVID-19.
Non-essential costs like social activities
may not be necessary for survival, but
they are the key to wellbeing. Inability
to afford social activities can lead
to a loss of social connections and
negatively impact wellbeing.10 COVID-19
exacerbates this risk, particularly during
periods of lock- down, driving elevated
levels of loneliness.
Being unable to save or invest puts
households at high risk of financial and
housing crisis if they have a sudden
cost, including a notice to vacate,
health crisis or an unexpected bill,11 as
highlighted in the qualitative responses:
‘Using credit card for food and
medications’
‘Missed doctor’s appointments
and not going shopping to save
on fuel’
8
9
‘I am usually left with no money
at all after bills and shopping.
So I am broke for 12 days in
a fortnight’
Who is most affected?
Older very-low income renters are
facing everyday financial struggles more
frequently than other renters.
• 23 per cent report typically not having
enough money left after rent to meet
essential expenditures like bills,
clothing, essential transport, food and
drink. They are 2.7 times more likely
than all other renters to report this
economic crisis and 1.3 times more
likely than other low-income renters.
• 65 per cent report typically having
insufficient funds after rent to meet
non-essential expenditure, including
social activities, holidays, TV, nonessential food and drink, and alcohol.
They are 4.4 times more likely to
experience this than all other renters,
and 1.6 times more likely than other
very low-income renters.
• 76 per cent typically do not have
enough money after paying rent to
save or invest. They are 4.4 times
more likely to report this than all other
renters, and 1.8 times more likely than
other very low-income renters.
Aged 50 and over and with an annual household income less than $31,000.
Power, E. R. (2020) Older women in the private rental sector: unaffordable, substandard and insecure housing, Western Sydney University, https://doi.
org/10.26183/5edf0f0d75cf8.
10 Morris, A. (2016) The Australian Dream: Housing Experiences of Older Australians, CSIRO Publishing, Clayton South.
11 Productivity Commission (2019) Vulnerable Private Renters: Evidence and Options, Productivity Commission, Canberra.
