SYDNEY, Jan. 20, 2023 /PRNewswire/ — Australia finds itself in an undesirably uncertain position where they are experiencing a period of very low rental vacancy rates and rising rent levels according to Cityremovalist. The very low vacancy rate has been constant for the vast majority of 2022, a situation not seen for over two decades. This has an adverse effect on the housing market as it forces pressure on rents to rise, and as a result are at the highest, they have ever been. City Removalist have been an industry leader for over 20 years been within the removalists interstate Sydney earning a well-deserved reputation as one of the best removalist companies in the business.
Why do we have a rental crisis?
According to Cityremovalist, with rising migration into Sydney, it certainly poses a major challenge for the inner-city rental market over the next year given the low supply of available housing. As many landlords who had owned inner-city apartments have then sold them during the pandemic and the supply of rentals remains much lower than before the pandemic. This crisis of rental housing is the consequence of several causes and will require a variety of solutions. Cityremovalist will list several reasons:
1. NOT ENOUGH HOMES BEING BUILT – effecting the home
City Removalist strongly believe that there are not enough homes to keep up with population and household growth. One reason for the increased number of new households in part caused by relationship breakdowns and share houses dissolving due to COVID lockdowns.
TIP 1: City Removalist understand that to reduce the rental crisis the building industry needs to build more well-located rental dwellings in geographical areas that are affordable to people with low incomes.
TIP 2: City Removalist also believes that builders must be incentivized, if the state and federal government can work together to offer subsidies to builders, this could substantially offset some of the cost burdens associated with the construction of new dwellings.
2. RISE IN BUILDING COSTS
City Removalist firmly believes that the rise in costs and the unprecedented number of building companies that have gone into administration have had a significant impact on the number of homes not being built. Furthermore, the number of people looking to build homes is on the decline since there is a weakening in confidence in the building industry.
TIP 1: Cityremovalist firmly believe that lowering of interest rates will help curb rising prices and may tempt developers back into the real estate market, but in times of high inflation, investors usually become risk averse.
3. RENTAL ASSISTANCE
There is a lack of rental assistance when it comes to renting as a lot of the federal budget is afforded to Job Seeker recipients and other social welfare programs.
TIP 1: Cityremovalist advocate that there be government assistance though, there are limitations in that ‘the Australian Government is empowered to make certain social security payments only, which do not include rent or other housing payments. If the federal and state governments work together making grants a priority to the states and territories for rent assistance to eligible persons will improve rental affordability across the board.
It has been a turbulent year for more reasons than mentioned above, the culmination of inflation, post pandemic and rising interest rates would be at the forefront of the reasons there has been such a short supply of affordable rentals properties, and in return reducing the Interstate Removalists Sydney market
City Removalist have turned the spotlight on an issue that has no easy or fast solutions, but rather a sustained effort by the government and private sector to collectively come together and propose a long-term plan for sustainable development and rental assistance moving forward.
About City Removalist
It’s hard to believe they started out over 25 years ago when one man purchased his first removalist truck. Fast forward to today and their fleet of over 45 trucks move entire households and offices across eastern Australia within 48 hours. They know the city of Sydney and its surrounding suburbs better than most as they have served not only Sydney, but Brisbane, Canberra, Adelaide, and Melbourne for over 20 years with quality service, professionalism, fairness, and integrity.
For more information, visit us at https://www.cityremovalist.com.au/services, or call on 1300 441 331 and our friendly staff will be more than happy to assist you.
SOURCE City Removalist and Storage