Geelong is in “housing crisis” after pleas for rental assistance increased by almost half in eight months, according to Salvoconnect .
The charity experienced a 46 per cent increase in calls for help with rental arrears, said the service’s private rental broker, Nicki Macrae.
“I am seeing more and more people … whose rent has increased but their income has not,” she said.
“We see rents being driven up due to the demand, which makes private rental difficult to access for struggling families.”
The rising cost of living was also driving families out of the market, Ms Macrae said.
“We regularly see people who are living pay cheque to pay cheque, who could be at risk of homelessness with an unexpected incident, such as job loss or medical expense.
“We currently understand that the general interest public housing wait list is 30-plus years so we have to rely on private rental.”
Unaffordable rents forced more people to seek assistance through SalvoConnect’s Housing Entry Points program, Ms Macrae said.
Of the 3701 people who sought assistance, 39 per cent had no current tenure, she said.
In a recent search Ms Macrae identified 11 properties in Geelong available at 37 per cent of a pension for a single parent with two children.
“(Thirty seven per cent) is what most Real Estate Agents will base their figures on,” she explained.
She found four properties affordable for a person on a disability support pension and none for a person on Newstart allowance.
Rent prices had increased by six per cent in the past 12 months, while “affordable” rents had dropped by 11.5 per cent, she said.
This week alone Ms Macrae met several families, unemployed people and single parents seeking assistance.
“When we moved in two years ago our rent was affordable,“ said a woman who wished to remain anonymous.
“My husband had full time work but has since had his hours cut.
“On top of this our rent has gone up, twice, by $15 per week. Our rent is no longer affordable.“
Another rent-seeker on Newstart said they put in 30-plus applications for tenancy, with no luck.
Earlier this week not-for-profit social housing group Compass reported median rents were at 28 per cent of median wages in Geelong, putting the city on the cusp of “housing stress”.
Geelong had “Melbourne-style rents“ but lower incomes than state’s capital, Compass spokesperson Martin Kennedy said.
“Even working people are struggling to afford suitable rental properties.“
According to Compass, rent prices in Geelong had risen by 150 per cent since 2000, compared to 95 per cent in some inner suburbs in Melbourne.
Yesterday Real Estate Institute of Victoria reported rental vacancies across the state were at an all-time low.
