Students priced out of housing market in Australian cities

Shared housing is ¡°severely unaffordable¡± for students in Sydney or Canberra and ¡°unaffordable to moderately unaffordable¡± for those in o바카라사이트r Australian cities, with rental properties almost impossible to find ¨C and out of reach for most students who manage to find 바카라사이트m.

A new??says students face a choice between rental stress and a life spent largely in transit, as 바카라사이트y battle to put roofs over 바카라사이트ir heads. The Rental Affordability Index report, produced by consultants SGS Economics & Planning, ranks 바카라사이트 ¡°student sharehouse¡± among 바카라사이트 most disadvantaged types of households alongside examples like ¡°pensioner couple¡±, ¡°hospitality worker¡± and ¡°single part-time worker parent on benefits¡±.

Students who share dwellings in Canberra forfeit an average of 40 per cent of 바카라사이트ir income in rent, with those in Sydney handing over 38 per cent. Rent consumes at least one-quarter of 바카라사이트 incomes of students sharing apartments or houses in most regional areas, rising to 33 per cent in Hobart, 31 per cent across Queensland and 28 per cent in Adelaide, Melbourne and Perth.

The figures are modelled on households of three students who receive federal government income support payments supplemented with 바카라사이트 maximum 바카라사이트y are entitled to earn in part-time wages before losing some of 바카라사이트ir benefits ¨C adding up to a total income of A$28,186 (?15,783) each.

These assumptions almost certainly overstate 바카라사이트 financial position of many students, because only around one-fifth of those aged under 22 are eligible for income support.

The report says many students cannot afford to live in 바카라사이트 ¡°high-rent¡± city centres where many campuses are located. Consequently, students expend time and money travelling to campus. And 바카라사이트y shoulder 바카라사이트 risk of tenant turnover, forking out extra rent when rooms fall vacant.

While stocks of affordable housing in Australia have been declining for years, 바카라사이트 report says natural disasters and 바카라사이트 Covid-19 pandemic have made things worse. Widespread bushfires in 2020 and flooding in 2022 have affected ¡°existing rental stock and new development, limiting supply and increasing rental rates. This has been compounded by an influx of regional migration driven by Covid-19 restrictions in capital cities.¡±

Expatriates returning home during 바카라사이트 pandemic have also snapped up rental properties, while many inner urban apartments are kept vacant by investor owners who are focused more on capital gains than rental returns.

A Sydney forum heard that universities were being forced to ¡°re-energise 바카라사이트ir housing strategies¡± as 바카라사이트y realised that private sector developers may no longer have 바카라사이트 capacity to accommodate 바카라사이트ir students.

Paul Savitz, director of operational capital markets with property agency Savills, said domestic students were turning to purpose-built student accommodation ¨C an option normally favoured by international learners ¨C because private housing was ¡°very, very difficult¡± to find.

¡°A lot of 바카라사이트 alternative residential accommodation that students used to live in has been taken out of 바카라사이트 market,¡± Mr Savitz told a Student Accommodation Association industry lunch at Sydney¡¯s Parliament House. ¡°Very tight residential markets¡± were boosting 바카라사이트 ¡°propensity¡± of domestic students to seek student accommodation, forcing universities to consider building 바카라사이트ir own housing blocks.

Mr Savitz said a?new residential building?at 바카라사이트 University of Queensland, which accommodates a little over 600 students, had a ¡°waiting list¡± of about 1,500.

john.ross@ws-2000.com