Rental struggle worsens

THE cost of rental homes in Geelong is beyond the reach of locals as alarm bells ring over a “pending disaster”.

For the first time on record, the number of rental properties deemed affordable in Greater Geelong has dropped below 20 per cent.

The latest figures from the Department of Health and Human Services reveal only 354 properties (18.5 per cent) on the market between September and December 2018 were within the means of the general population.

The department classifies properties as affordable if tenants are spending less than 30 per cent of their gross income on rent.

The median price of a rental in Geelong now stands at $360 — well above the regional Victorian average ($310).

Lara ($380) is the most expensive suburb to rent in Geelong, while Corio ($275) is the cheapest.

The latest results for Geelong mark a significant drop since June 2015, when 34.9 per cent of lettings were deemed affordable. The municipality’s high point was in September 2001, when more than 80 per cent of properties were within the means of tenants.

Leading social welfare advocate Bill Mithen said the figures were “incredibly concerning” and he warned of a “pending disaster” as worsening affordability coincided with a lack of public housing stock in the region.

“When you add rental affordability with high levels of unemployment and underemployment, you’ve got a cocktail recipe that is not very good for lots of people,” he said.

The Give Where You Live chief executive said rising living costs were resulting in his foundation being overrun with pleas for help from welfare providers.

“We constantly have a high request for funds and support,” Mr Mithen said.

“From food services through to homelessness services — all are saying they’ve got more and more people coming to their doors and asking for help. I can tell you our most recent grant round is probably oversubscribed two-to-one, meaning half of the applications won’t receive funding.

“That makes it incredibly competitive and difficult. They’re all good applications and from good organisations doing great work.”

Mr Mithen said addressing cost-of-living issues was a complex problem, but he argued an increase in employment opportunities could play a big role.

It comes as his foundation continues to seek a $2 million commitment from the Federal Government for its GROW initiative, which is aimed at creating new jobs and investment opportunities in disadvantaged areas within the region.

“It’s fair to say if there was an easy solution, it would’ve been undertaken by now,” Mr Mithen said.

“I think one of the things we need to think about as a community is how we all come together and do our piece to address some of these issues.”