Queensland Housing Crisis: Can Rent Caps Save Families?
The housing crisis in Queensland, Australia, where there are skyrocketing rental prices and long waiting lists for social housing. The report commissioned by the Queensland Council of Social Service states that around 150,000 households are under housing stress, with 100,000 of them typically eligible for social housing. The housing stress particularly affects families with children.
The rental market inflation in Queensland is also highlighted, with the median rentals rising by 80% in Gladstone, 51% in Noosa, and 33% on the Gold Coast in the last five years. The proportion of affordable private rentals for low-income households has dropped from 26% to 13%.
Government Considerations On Queensland Housing Crisis:
The Queensland government is considering rental caps to help alleviate the financial stress on families facing huge rental increases. They have also considered purchasing properties under the National Rental Affordability Scheme, which aims to reduce the costs of rent for low to medium income family households.
There are calls for rental increases to be limited as tenants face eviction due to soaring rental prices. Housing advocates in Queensland propose linking rent increases to the Consumer Price Index (CPI) plus 10%, similar to laws in the Australian Capital Territory.
However, the state government and real estate lobby groups argue that such restrictions may have little impact and could potentially deter owners and investors from entering the market.
The impact on renters in the current housing crisis in Queensland has had a significant impact, with many facing eviction or being forced to move out of their homes. There are calls for rental caps and rental increase limits to provide some relief for those struggling in the current market.
However, some argue that limiting rental increases might only be a band-aid solution and could potentially disincentivize investors from entering into the market, exacerbating the problem in the future.
