Australian Housing Stress: Three in Four Say a $20 Weekly Rise Would Force Cuts

A $20 weekly increase in rent or mortgage payments would strain household budgets across Australia, with 76 per cent of survey respondents saying they’d have to cut spending or change their routines. The findings point to a housing market where many households have little room to absorb even a modest rise.

The Everybody’s Home report, “No Room to Move”, surveyed 1,150 renters, homeowners, people experiencing homelessness and residents in temporary housing between July and September. It found 62 per cent were already spending more than 30 per cent of their income on housing. Four in ten said a further $20 a week would either be unaffordable or force them to reduce spending on essentials such as food, medication and bills.

The survey comes amid rising housing and living costs. The cash rate had reached 4.6 per cent, a 15-year high, after the fourth rate rise of the year described in the report.

Households are already cutting back

Respondents reported changes to everyday spending, including using less energy (48 per cent), driving less (40 per cent) and avoiding doctor visits (38 per cent). The pressure also appears in longer-term decisions: 46 per cent said they were putting off retirement savings, 35 per cent had delayed buying a home and 22 per cent had deferred further study. Others said housing costs had affected plans to live nearer family (20 per cent) or change jobs (16 per cent).

Looking ahead, respondents feared higher costs could worsen their mental health (37 per cent) or physical health (27 per cent). Another 27 per cent worried they might have to move, 26 per cent feared they would be unable to retire or save, and 23 per cent thought they could become homeless over the coming year.

A new survey has found three in four (76 per cent) of Aussie respondents would have to make sacrifices to their budgets and way of life if their rent or mortgage rose by $20 a week Picture: NCA NewsWire / Gaye Gerard

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Rental condition compounds affordability pressure

Budget strain is only part of the picture. Nearly half of respondents (47 per cent) said their home wasn’t warm enough during winter. Among the issues cited were poor insulation (63 per cent), being unable to afford heating (59 per cent), and draughty windows or doors (39 per cent).

Three in four renters (77 per cent) said they had avoided requesting repairs. The leading concerns were that a repair request could be followed by a rent increase (72 per cent) or that they wouldn’t find another affordable home if they had to move (73 per cent). Three in five respondents said their home’s condition had made someone in their household sick (35 per cent), or they weren’t sure whether it had (24 per cent).

Everybody’s Home spokesperson Maiy Azize said renters were paying more for housing while many had no financial buffer when costs rose. “Renters are being given the worst deal in living memory,” she said, adding that some homes were poorly maintained and affecting tenants’ health.

Everybody’s Home spokesperson Maiy Azize said renters are being given the worst deal in living memory. Picture: NewsWire / Martin Ollman

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Azize said renters could be reluctant to seek repairs because they feared higher costs or losing their home. She called for minimum standards for rental properties, limits on unfair rent increases, and more public and community housing, arguing the measures need to work together.

Her assessment captures the report’s central finding: housing pressure is shaping daily choices as well as major plans, while concerns about property condition add another burden for renters. With most respondents saying a small weekly increase would force a sacrifice, household capacity to absorb further housing costs looks limited.

Ms Azize said renters were increasingly paying unaffordable costs for homes that were often poorly maintained

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