Tuesday, April 23, 2024

Political Wrangling Over Housing, Rent Freezes Risks Dire Consequences

Political wrangling over housing, rent freezes risks dire consequences

A political stand-off over rent freezes and the Federal Government’s housing fund could have huge consequences for a generation of renters and property investors.

The most talked about aspect of the current housing crisis throughout Australia is its impact on the rental market.

The pandemic created approximately 120,000 extra households in Australia, where children left home to migrate to areas of employment, downsizers separated from their family group and migrated to various parts of Australia and, sadly, increases in divorce and the like very quickly created a significant need for additional households.

On top of that, many regions that were the recipients of large interstate migration saw those migrators first needing a rental property as they considered their purchase options.

Coinciding with the increased demand for rentals, there was a reasonably large pool of investors contacted by real estate agents submitting huge offers sight unseen by owner occupiers looking to purchase properties. Many who had previously no thoughts of selling, couldn’t resist taking those sale prices.