2025-01-10
The Greens have renewed calls for a cap and freeze on rents as new independent analysis reveals that unlimited rent increases over recent years have eroded renters ability to save for a house deposit.
The independent analysis conducted by the Parliamentary Budget Office (PBO) looks at housing deposit affordability for an average renter, consistent with methodology used by the Reserve Bank of Australia, and finds that a cap and freeze on rents would drastically reduce the time it takes a renter to save for a deposit.
The PBO analysis outlines that if rents continue to climb at the rate they have in 2022-2023, it will take the average renter 65.6 years to save for a house deposit by 2030.
The PBO canvased different rent control policies and found that that time would drop drastically if a rent cap and freeze were introduced.
Rents have skyrocketed in the last two years, and while the increases have slowed in the last quarter, the annual increase is still more than twice what it was before the pandemic.
Even if rent increases slowed to their 10 year average, the analysis finds that renters who can only afford to save 10% of their income would still find themselves saving for 15 years.
Rental affordability is at a 20 year low, and renters need the government to step in now. Sixteen countries across Europe have some form of rent control, while the ACT has enjoyed it since 2019.
The Greens will centre rent reform as part of their policy platform in the lead up to the Prahran by-election as rents have skyrocketed in Prahran and 55% of the population are renters.
Quotes attributable to the Victorian Greens spokesperson for Renters’ Rights, Gabrielle de Vietri:
“It’s almost impossible to save if you’re renting right now - you’re probably struggling to pay for groceries let alone a house deposit. This study makes the assumption that renters can currently save, but without rent controls, the possibility of that ever materialising into a home of their own becomes a distant dream.”
“We only need to look back over recent years to know that as long as landlords are able to jack up the rent as much as they like - they will.”
“Right now, renters know that it’s basically impossible to save for a house deposit and this is proof that with a rent cap and freeze, we can change that.”
Quotes attributable to Greens’ candidate for Prahran, Angelica Di Camillo:
“Renters make up 55% of our electorate and people in Prahran know just how hard it’s become to be a renter here as prices have skyrocketed.”
“We’re in the middle of a cost of living crisis where renters are being hit hardest with every rent increase pushing people further and further into financial stress.”
“It’s clear that we need to cap and freeze rents so that people have a chance at finding any kind of stability or even actually owning their own home.”