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The rental housing crisis is hurting our most vulnerable and demands a range of solutions (but capping rents isn’t one of them)

<p><em><a href="https://theconversation.com/profiles/andrew-beer-111469">Andrew Beer</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> and <a href="https://theconversation.com/profiles/emma-baker-172081">Emma Baker</a>, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a></em></p> <p>Roughly <a href="https://www.abs.gov.au/statistics/people/housing/housing-occupancy-and-costs/2019-20">one in three Australians</a> rent their homes. It’s Australia’s fastest-growing tenure, but renting is increasingly unaffordable. From 2020 to 2022, our <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4253168">research</a> found a large increase in the proportion of renters who said their housing was unaffordable.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=217&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=217&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=217&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=273&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=273&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=273&amp;fit=crop&amp;dpr=3 2262w" alt="horizontal bar chart showing changes in Australian renters' assessments of affordability form 2020 to 2022" /></a><figcaption><span class="caption">Change in Australian renters’ assessments of affordability from 2020 to 2022.</span> <span class="attribution"><span class="source">Baker, Daniel, Beer, et al, forthcoming, The Australian Housing Conditions Dataset, doi:10.26193/SLCU9J, ADA Dataverse</span></span></figcaption></figure> <p>Australians are concerned about the <a href="https://www.theguardian.com/australia-news/2023/jul/05/rents-rise-again-across-australia-with-sydney-seeing-fastest-rise-in-20-years">pace</a> of <a href="https://www.sbs.com.au/news/article/how-much-has-rent-increased-around-australia/8ljlnf0zm">rent rises</a>. Prime Minister Anthony Albanese <a href="https://www.pm.gov.au/media/national-cabinet-meeting">says</a> increasing housing supply and affordability is the “key priority” for tomorrow’s national cabinet meeting.</p> <p>The crisis has impacts well beyond affordability. The rental sector is where the worst housing accommodates the poorest Australians with the worst health.</p> <h2>The unhealthy state of rental housing</h2> <p>Forthcoming data from the <a href="https://dataverse.ada.edu.au/dataverse/ahcdi">Australian Housing Conditions Dataset</a> highlight some of these parallel challenges:</p> <ul> <li> <p>it’s often insecure – the average lease is less than 12 months, and less than a third of formal rental agreements extend beyond 12 months</p> </li> <li> <p>rental housing quality is often very poor – 45% of renters rate the condition of their dwelling as “average, poor, or very poor”</p> </li> <li> <p>poor housing conditions put the health of renters at risk – 43% report problems with damp or mould, and 35% have difficulty keeping their homes warm in winter or cool in summer</p> </li> <li> <p>compounding these health risks, people with poorer health are over-represented in the rental sector. Renters are almost twice as likely as mortgage holders to have poorer general health.</p> </li> </ul> <p>Measures that potentially restrict the supply of lower-cost rental housing – such as rent caps – will <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4253168">worsen these impacts</a>. More households will be left searching in a shrinking pool of affordable housing.</p> <h2>It’s all about supply</h2> <p>Fixing the rental crisis needs more than a single focus on private rental housing. The movement between households over time between renting and buying homes means the best solutions are those that boost the supply of affordable housing generally. No one policy can provide all the answers.</p> <p>Governments should be looking at multiple actions, including:</p> <ul> <li> <p>requiring local councils to adopt affordable housing strategies as well as mandating <a href="https://www.ahuri.edu.au/analysis/brief/understanding-inclusionary-zoning">inclusionary zoning</a>, which requires developments to include a proportion of affordable homes</p> </li> <li> <p>improving land supply through better forecasting at the national, state and local levels</p> </li> <li> <p>giving housing and planning ministers the power to deliver affordable housing targets by providing support for demonstration projects, subsidised land to social housing providers and access to surplus land</p> </li> <li> <p>boosting the recruitment and retention of skilled construction workers from both domestic and international sources.</p> </li> </ul> <h2>The biggest landlord subsidy isn’t helping</h2> <p>More than <a href="https://data.gov.au/data/dataset/taxation-statistics-2020-21/resource/ebbd32e3-4556-41e1-a8b9-33387457d518">1 million Australians</a> claim a net rent loss (negative gearing) each year. Even though negative gearing is focused on rental investment losses, it is not strictly a housing policy as it applies to many types of investment.</p> <p>The impact of negative gearing on the housing system is untargeted and largely uncontrolled. As a result, it’s driving outcomes that are sometimes at odds with the need to supply well-located affordable housing.</p> <p>The most impactful action the Australian government could take to deliver more affordable rental housing nationwide would involve refining negative-gearing arrangements to boost the supply of low-income rentals. These measures may involve</p> <ul> <li>limiting negative gearing to dwellings less than ten years old</li> <li>introducing a low-income tax credit scheme similar to the one in the United States.</li> </ul> <p>We can learn much from the US, where the Low-Income Housing Tax Credit (<a href="https://www.huduser.gov/portal/datasets/lihtc.html">LIHTC</a>) scheme subsidises the acquisition, construction and renovation of affordable rental housing for tenants on low to moderate incomes. Since the mid-1990s, the program has supported the construction or renovation of about 110,000 affordable rental units each year. That adds up to over <a href="https://www.taxpolicycenter.org/briefing-book/what-low-income-housing-tax-credit-and-how-does-it-work">2 million units</a> at an estimated annual cost of US$9billion (A$13.8billion).</p> <p>This scheme is much less expensive per unit of affordable housing delivered than Australia’s system of negative gearing.</p> <p>Closer to home, the previous National Rental Affordability Scheme showed the value of targeted financial incentives in encouraging affordable housing. This scheme, available to private and disproved investors, generated positive outcomes for tenants. The benefits included better health for low-income tenants who were able to moved into quality new housing.</p> <p>A <a href="https://cityfutures.ada.unsw.edu.au/documents/81/Next_moves_report.pdf">raft</a> of <a href="https://apo.org.au/node/260431">evaluations</a> have <a href="https://www.ahuri.edu.au/research/final-reports/267">demonstrated</a> the achievements of this scheme.</p> <h2>Crisis calls for lasting solutions</h2> <p>Short-term measures such as rent caps or eviction bans will not provide a solution in the near future or even the medium or long term. Instead, these are likely to worsen both the housing costs and health of low-income tenants.</p> <p>Reform focused on ongoing needs is called for. Solutions that can be implemented quickly include the tighter targeting of negative gearing and the introduction of a low-income housing tax credit.</p> <p>Talking about change, as the national cabinet is doing, will begin that process of transformation, but it must be backed up by a range of measures to boost the supply of affordable housing. This, in turn, will improve the housing market overall as affordable options become more widely available.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/211275/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/andrew-beer-111469">Andrew Beer</a>, Executive Dean, UniSA Business, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> and <a href="https://theconversation.com/profiles/emma-baker-172081">Emma Baker</a>, Professor of Housing Research, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-rental-housing-crisis-is-hurting-our-most-vulnerable-and-demands-a-range-of-solutions-but-capping-rents-isnt-one-of-them-211275">original article</a>.</em></p>

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The snow-capped mountain metropolis people never want to leave

<p>If you think of a ski resort as a pretty mountain village with snow-capped peaks soaring above, some glamorous people promenading the pathways and tanned sporty types hurtling down the slopes, then Whistler has all that.</p> <p>But is has so much more; it has gone way beyond being a resort, it's a metropolis with mountains attached; a location with a lifestyle, and despite its size and popularity, there is still some heart and soul.</p> <p>"Some people come here for a gap year," says one local on a ski-lift, "and they end up staying for a gap life."</p> <p><img width="497" height="330" src="https://oversixtydev.blob.core.windows.net/media/11413/canada_497x330.jpg" alt="Canada" style="display: block; margin-left: auto; margin-right: auto;"/></p> <p>She's right, and they've given the place its character – total enthusiasm for outdoor pursuits and a total appreciation of the mountain environment and culture.</p> <p>Summer here is almost as busy as winter, with mountain hikers and bikers exploring the terrain, people paddling on the rivers and lakes and some still skiing on the glaciers way up high.</p> <p>The permanent population is 10,000, there are 30,000 visitor beds and on a big day – Vancouver is an easy drive away and Seattle not so far either – the Whistler area can be hosting 70,000 people.</p> <p>So the mountain can get crowded – there's enough room on the slopes, but the lift queues can be lengthy.</p> <p>That makes it all the more appealing to take a ski or snowboard lesson, or a clinic, which comes with lift priority: you get to cut to the front of the queue.</p> <p>We are to ski for a day with Extremely Canadian, a Whistler-born tuition and guiding service that shows skiers and boarders how to handle this vast area's steeper terrain.</p> <p><img width="497" height="330" src="https://oversixtydev.blob.core.windows.net/media/11414/canada-two_497x330.jpg" alt="Canada Two" style="display: block; margin-left: auto; margin-right: auto;"/></p> <p>Our coach Wendy Brookbank, from nearby Pemberton, spent time on the ski competition circuit, was in the world's first televised extreme skiing event (1991, Juneau, Alaska) and now applies her considerable skills as a skier and talents as a teacher to people who want to improve their angles.</p> <p>There's a lot of skiing and just the right amount of theory passed on: "You can't cloud people's minds with too much detail, especially in challenging terrain where they might be more nervous," Wendy says.</p> <p>We position ourselves for the drop at the top of Whistler Bowl; there's the lip of a cornice to deal with first and while it won't make the movies, there's still the risk of a tricky tumble into the terrain below. The bowl opens up nicely, but if you miss the entry from the cornice, you'll be sliding down that slope for an uncomfortable while before you pull yourself up.</p> <p>That allows some time for thinking about all the things that could go wrong ... Wendy keeps it simple: "Keep a defensive hand below you, hold that downhill pole straight out from your body, that'll help your stance but will also be there if you need it.</p> <p>"Keep your chin up and your eyes and head still, not moving, and pointing down the hill in the direction of the turn."</p> <p><img width="500" height="334" src="https://oversixtydev.blob.core.windows.net/media/11415/canada-three_500x334.jpg" alt="Canada Three" style="display: block; margin-left: auto; margin-right: auto;"/></p> <p>The snow is hard-packed and she points out that "it'll go ka-thunk, ka-thunk, ka-thunk". "Just absorb it," she says.</p> <p>It does and we do – and after the tricky entrance, the turns on the steep terrain are a sweet return. Once you have your rhythm and confidence, it's like free-falling.</p> <p>We cover a lot of ground. There are two huge mountains – Whistler and Blackcomb – both with glaciers at their higher reaches and long, entertaining runs moving down from the open slopes and into the forests.</p> <p>It gives the mix of terrain North American resorts are so well known for – some steeps for the challenge, but plenty of the long, scenic cruising runs that most people prefer to ride.</p> <p>To connect the two mountains, before it hosted the skiing events of the 2010 Vancouver Olympics, Whistler built the Peak to Peak gondola and for fans of the engineering brilliance of ski lifts, it takes some beating.</p> <p>It travels 4.4 kilometres and at its longest stretch has a 3.03-kilometre span between towers. At its highest point it is 463 metres above the ground. Look away now if you get vertigo: it even has some cars with glass floors so you can get the full viewing experience.</p> <p>We use it to cross from Whistler Mountain to Blackcomb then ride its lifts up to Blackcomb Glacier. There we climb up a ridge on a stretch called Spanky's Ladder to ski gems of bowls known as Diamond and Sapphire.</p> <p>I peer over the edge, neck out like a stork to find the friendliest way in. "Hey there Hugo," says Wendy, as a tall, athletic skier climbs the last few steps to the lip, clicks into his skis and replies with a "how's it going, Wendy", before leaping into Diamond Bowl and making it shine.</p> <p>There goes Hugo Harrison. He is to big mountain skiing – judged descents on steep terrain with speed, style and creativity – what Roger Federer is to tennis.</p> <p>They're the kind of people you keep bumping into around here, the Hugos and the Wendys – devoted skiers and snowboarders who either grew up on these slopes or arrived here along some fortuitous path and just never saw the reason to leave.</p> <p>It's difficult to argue with their reasoning.</p> <p>Written by Jim Darby. First appeared on <a href="http://www.Stuff.co.nz" target="_blank"><span style="text-decoration: underline;"><strong>Stuff.co.nz</strong></span></a>. </p> <p><em><strong>No matter where you’re travelling to, making sure you know how to access your cash while away – and in the most affordable way – is very important. Easy to use and with countless benefits, the Over60 Cash Passport allows you to securely access your cash in the same way you use an ATM or credit card­.<a href="https://oversixty.cashpassport.com.au"><span style="text-decoration: underline;"> To find out how you can apply for a card today, click here.</span></a></strong></em></p> <p><em><strong>Have you arranged your travel insurance yet? Tailor your cover to your needs and save money by not paying for things you don’t need. <a href="https://elevate.agatravelinsurance.com.au/oversixty?utm_source=over60&amp;utm_medium=content&amp;utm_content=link1&amp;utm_campaign=travel-insurance"><span style="text-decoration: underline;">Click here</span></a> to read more about Over60 Travel Insurance.</strong></em></p> <p><em><strong>For more information about Over60 Travel Insurance, call 1800 622 966.</strong></em></p> <p><em>Hero image credit: SurangaSL / Shutterstock</em></p>

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