For renters, making housing more affordable is just the start

Deloitte Access Economics' Chris Richardson recently suggested that young Australians would be better off renting than trying to buy a house. He argued that 'rents today make a lot more sense than housing prices'. This may be true. However, the situation for renters is far from clear-cut. Rents continue to increase in Australian cities, and are out of reach for low- and very-low-income earners. Renters also face substantial housing insecurity. In Australia, 50% of renters are on a fixed-term, one-year lease; 20% are on a month-to-month 'rolling' lease. For renting to become a truly viable, long-term alternative to home ownership, greater rental affordability and security are needed.