Australian rental crisis: Essential workers such as nurses are among those hardest hit by rising housing prices

An organization has made an urgent plea to boost affordable housing after recent data showed most essential workers in Australia are unable to afford rising rents.

New data from Anglicare Australia showed that in a pool of 45,895 rental properties across the country, only 2.4 per cent were affordable for an ambulance worker.

Nurses are in an even worse position, with only 666 rental properties across the country within their budget.

Caregivers could realistically afford only 1.1 percent of available rents, and early childhood educators could afford only 0.9 percent.

Despite working full-time, people in these occupations, as well as hospitality workers and construction workers, simply cannot afford most rental properties currently on the market, according to the data.

The Rental Affordability Snapshot found that the lowest paid workers on the list – hospitality workers – could afford just six properties in WA and 70 in Victoria.

Affordable properties for these workers in Victoria also tended to be shared housing.

In New South Wales, social and community workers had just 259 homes to choose from, leaving hospitality workers with 233 – less than 1.5 percent of the state’s rental market.

“Affordability was consistently poor across the country,” the report said.

“In every state and territory, less than three percent of rents were affordable for a social worker.”

In Tasmania, community workers could afford only 19 of the available housing, and workers looking to rent in WA could afford only nine.

Kasy Chambers, executive director of Anglicare Australia, said the data shows essential workers are being pushed into ‘serious rent stress’.

“So many essential industries are experiencing labor shortages, with workers unable to afford to stay or move to parts of the country where these shortages are worst,” said Ms Chambers.

These numbers help explain why.

“Virtually no part of Australia is affordable for aged care workers, early childhood educators, cleaners, nurses and many other essential workers we rely on. They can’t afford to live in their own communities.’

New data from Anglicare Australia showed that in a pool of 45,895 rental properties across the country, only 2.4 per cent were affordable for an ambulance worker

Compounding the problem is Australia’s record low vacancy rate.

While there were consistently over 65,000 homes for rent when the Snapshot study was conducted in 2018-2021, the vacancy rate in Australia is currently just 0.8 percent of all homes.

This has caused rents to skyrocket over time, with states now struggling to resolve further price spikes caused by potential tenants bidding for rent.

Ms Chambers said building social and affordable rental housing is the best way to tackle the rental crisis.

She said the data shows that the private market is failing middle-income people, not just low-income people.

“While Australia has built a record number of homes over the last decade, rents continue to rise.

‘The best way to make renting more affordable is to build social and affordable housing.

‘Building general housing and hoping that affordability will trickle down on its own just doesn’t work.’

Ms Chambers said building social and affordable rental housing is the best way to tackle the rental crisis

She called for the development of more affordable housing for essential workers and protection for tenants facing unfair rent increases.

“We are calling on housing ministers to take action when they meet next week – and make sure everyone has a place to call home,” Ms Chambers said.

The report also calls for essential workers to receive higher salaries.

“Care work in the community service sector has historically been undervalued, and this is evident in the low wages across the industry,” the report said.

“Increases are needed across the healthcare sector to attract and retain a highly skilled workforce, ensure workers receive a living wage and prevent workers from moving from one part of the sector to another, creating labor shortages elsewhere .’