Excerpt from an article Peter Lewis- Edited by S W T Read
The federal government’s gradual withdrawal from directly building low-cost rentals.
Social housing, is not a term either parties would use. Governments have been gradually creeping away from it. Now public and community housing is now as scarce as hen’s teeth, and almost impossible to access.
In affordable housing the withdrawal was more sudden, with the 2014 budget decision to scrap the National Rent Affordability Scheme that provided investment support for rental properties for moderate-income earners.
This was a deliberate attempt to distort the housing market – to actually make it more attractive for investors to build affordable rental properties and accept a more moderate short-term return while building an asset with long-term value.
As government has walked away from social and affordable housing, more renters have been left to compete for the few relatively cheap private rentals on the market.
Therefore pushing rent prices up and making it harder for renters to save for a deposit. Alternatively the lack of affordable rent forces people further down the housing chain into short-term accommodation, on to couches or worse, the street.