The Truth About the Rental and Mortgage Stress Among Australians
Stress is caused by several internal and external factors. These stressors are either things we have little to no control over or those we can actually find a solution to. For instance, unpaid bills and the fact that you have no idea where to get the payment could be a trigger. The demands of the world could greatly affect your stress level. It would be a huge difference if we have some power over these stressors, most especially the financial factor.
According to the latest study, a third of Australians are saying that they are currently experiencing mortgage or rental stress amidst the chaos brought by the pandemic.
Property prices are rapidly rising and record-high rents are seen all over the country. According to studies, 31 percent of people are struggling to pay for rent or home loans, which has been such a huge problem among individuals looking to find a home. The latest figures show that there is a slight drop from the previous record in June with 33 percent, unfortunately, it is an increase from last year’s figures with 23 percent of respondents saying that they experienced home loan stress. Since then, it has increased.
Low-income tenants are the most susceptible to experiencing rental stress which is due to paying rent or mortgage more than what they earn. While high-income households also pay 30% of their income to their rent or mortgage, the Australian Bureau of Statistics says that rental stress relates more to low-income earners because they are usually the ones encountering financial difficulty.
So why is rental stress an issue?
Australian property prices are increasing to the point of causing Australians to go for renting. But the crazy thing about this is, even renting a home is impossible for others. Affordable housing is one of the biggest problems Australia is facing right now, and last year when the pandemic happened, it was even more apparent. Rough sleepers and homeless people were suddenly found themselves in a situation wherein not only should they worry about where to go but their health as well.
While there were efforts to get them off the streets and find temporary accommodation during the pandemic, homelessness is still an ongoing problem. Those who have a home whether purchased or rented are going through stress due to overextending themselves to keep up with the rising prices. This is so much more apparent with recent first home buyers and their savings have been affected as well. This decreases opportunities for individuals to find a home that will suit their budget and lifestyle, which could become a huge issue for Australians in the long run.
What can property managers do?
Landlords and property managers must understand that the dynamics of the property market are changing so this means that a small rent increase could potentially push people into rental stress. They must be able to provide some assistance and resources for whatever their tenants need. Building strong relationships is vital now more than ever.
Xotel is all about building relationships. We understand that there are people who do not have enough to buy a house so safe and affordable accommodation is their best chance at having a normal life. We continue to partner with the government and organizations in building a better community for everyone.