With the housing crisis intensifying, the Australian dream of owning a home is slipping away for many. And while there are some signs that things might ease for renters towards the end of 2025, the current rental market also remains challenging. So, what happens to those who can’t afford to buy or rent?
The number of people experiencing homelessness has escalated alarmingly in recent years, as have mental health issues. In fact, according to research by the Committee for Economic Development of Australia (CEDA), some 38% of private tenants report that their housing situation is impacting their mental health.
And as the crisis continues, it doesn’t only affect vulnerable tenants. The impact cascades through families and can ripple out to broader social and economic consequences. So today, I want to talk about the micro and macro effects – and why we must act urgently.
A huge personal toll on individuals and their families
Without a safe and secure place to call home, individuals are plunged into the cycle of housing instability and homelessness – a cycle that can be incredibly difficult to break. The lack of stable housing disrupts every aspect of daily life, from maintaining employment to managing health and personal relationships.
It can be a vicious, fast-moving spiral. And even for those who maintain stable housing, uncertainty in the market can leave tenants feeling precarious. VERTO’s Tenants' Advice and Advocacy service regularly hears stories of tenants who don’t want to report serious or even dangerous maintenance issues in case it is a catalyst to end their tenancy.
While we are seeing some steps in the right direction when it comes to legislation with increased protections here in NSW, such as the end of ‘no grounds’ evictions, there is more work to be done.
It’s not my intent to paint a negative picture of landlords here. Many investment property owners in Australia are families facing cost-of-living pressures, but the fact remains that tenants are uniquely vulnerable right now.
The end of a tenancy can be disastrous
In many regional areas, affordable housing is in short supply. Take Dubbo, for instance. Vacancy rates have dropped as low as 0.5% in the last few years, which has driven rents up substantially. For single-parent families, the picture is even more bleak, with many spending as much as 56% of their income on rent.
So, when someone already spending more than half of their income on rent loses their tenancy and returns to a rental market characterised by low vacancy and increased rents, it is a perfect storm. In this environment, it is easy to see how mental health conditions can escalate.
Stable housing is a precursor to almost every part of life, from employment to personal safety and, of course, health. Many of these vulnerable tenants are families, meaning children also feel these impacts.
Of course, these individual impacts are enough of a catalyst to act. But it’s also worth noting the impacts the rental crisis may have on a much larger scale.
Broader implications for our economy
Stable housing is key to a stable workforce. For obvious reasons, employees facing housing stress can struggle to maintain employment, which can have flow-on effects on our workforce and the economy.
In addition, the relationship between housing stress or poor quality housing and mental and physical health is well documented. A crisis on this scale certainly can put significant strain on our health services – many of which are already at capacity in our regions. And, of course, housing instability also puts greater strain on community, social and welfare services.
To sum it up, the current crisis presents challenges for us all, and it’s clear that supporting vulnerable tenants is a win on every level. Investing in housing stability now could also be a pathway to reducing long-term costs for taxpayers. What’s clear is that immediate support is needed for tenants – and I’m proud that VERTO is part of that support.
Reach out for support
With the challenging rental landscape, tenants need support to understand their rights and to secure their tenancy rights and obligations. VERTO's free and confidential Tenants’ Advice and Advocacy service offers private tenants access to advice and can refer them to other community services, such as financial counselling. The service can also support tenants through NSW Civil and Administrative Tribunal (NCAT) matters.
For free and confidential support and advice, visit VERTO's Tenant’ Advice and Advocacy service or contact us on 1300 483 786 to learn more.
