Investors: have your say on the rental crisis

REIWA and the Real Estate Institute of Australia (REIA) are calling for investors to have their say regarding the Senate inquiry into the worsening rental crisis in Australia.

REIWA CEO Cath Hart urged Western Australian property investors to take part in the submission, which closes on 4 August.

“REIWA and REIA are making submissions to this important Senate inquiry and this is another opportunity for investors to be heard,” she said.

“Investors are the bedrock of the rental market – about 85 per cent of rental properties are provided by private investors and about 70 per cent of these investors only own one property.

“WA’s current rental crisis is caused by demand exceeding supply. WA has already seen a significant number of investors leave the market in the past few years.

“We need an environment that encourages, not discourages investment. If investors aren’t confident about property, they will put their money into other assets and rental queues will remain long.”

REIA President Hayden Groves said the continued politicking around rental affordability was causing further confusion for Australians and adversely impacting housing supply.

“Adam Bandt is campaigning for rent freezes and rent controls, while busily attacking family investors when they are, in fact, the main suppliers of rental homes across Australia,” he said.

“Meanwhile, Victorian Premier Daniel Andrew’s has joined in with recent speculation about rent controls and rent freezes, with 36 per cent of new property listings in Victoria now family investors selling rental homes.

“At a time when cost of living, inflation and interest rates are challenging for all, family investors are rightly frightened by talk of rent controls and rent freezes and we see that bearing out in the listings and sales data.

“The biggest loser out of that is, of course, renters as fewer rental properties will be available.”

Mr Groves said everyday Australians needed to tell decision makers in Canberra their story about supplying rental properties, as well as renters themselves.

“Now is the chance for family investors; and tenants to get involved and give their ideas on how we can improve the rental system and increase supply, not further reduce it.”

Make a submission here.

National fast facts:

• There are 2.2 million family investors supplying rentals Australia wide.
• 30 per cent of households rent their home with 27 per cent renting from a private investor.
• Only 3 per cent rent from a government housing authority – half of what it was two decades ago. In WA 3.5 per cent rent from a government housing authority, according to Census data.
• Rental affordability has been largely stable in Australia and was at its worst during the Global Financial Crisis.
• Rental availability has been severely challenged since the onset of COVID-19 will all major cities reporting vacancy rates of less than 3 per cent.

WA fast facts:

• WA’s population grew from about 2.5 million in 2016 to about 2.7 million in 2021 according to ABS Census data. It rose to over 2.8 million by the end of 2022.
• According to 2021 Census data, 22.7 per cent of WA households rent privately. This was 30,850 more than in 2016.
• 3.5 per cent of households rent from a government housing authority, according to Census data. This was 559 more than in 2016.
• WA is one of the most affordable states or territories for renters according to REIA data.
• WA’s vacancy rate has been below 1 per cent for 22 out of the last 34 months.