DORM LIFE A NEW NORM
Families fill backpacker hostel to escape rising rental crisis
FAMILIES are living in dormitory rooms designed for international backpackers as the Far North rental crisis worsens – and they’re grateful to have a roof over their heads at all.
Castaways Backpackers on Sheridan St has opened its doors to those who can’t get rental properties with 27 rooms full and owner Wayne Hutchison said demand was intense.
“The Hub and other organisations are calling us every day, scrambling to find accommodation for people. I could fill another 20 rooms right now if I had them,” Mr Hutchison said.
Rent in the Cairns region has risen by 7.9 per cent – more than double the growth of five previous years – to a hefty $439 per week for a house or unit.
RENT in the Cairns region has escalated by 7.9 per cent – more than double the growth of five previous years – to a hefty $439 per week for a house or unit.
Hard data underscores what hundreds of Far North families are experiencing as they struggle to find homes to rent, living in hostels, tents and caravans and applying fruitlessly for rentals.
Many are experiencing, or on the brink of, homelessness.
The number of homes on the rental market dropped by almost half in June with just 1815 places available from Daintree to Innisfail.
And rent in the region is rising more sharply than the national average of 6.6 per cent.
Rent at Gordonvale jumped by 12.2 per cent to $462 per week and there were increases of more than 10 per cent at Mission Beach, Yorkeys Knob, Mossman, Mareeba, Kuranda, Palm Cove, and Trinity Beach.
Three factors are causing a perfect storm for stressed out mums and dads and workers seeking rentals.
A spike in domestic tourists visiting the Far North because international borders are closed has created a gold mine for property owners offering short-term accommodation – instead of six or 12month leases to residents.
A boom in jobs in the region is bringing an influx of workers, who need somewhere to live.
And then there’s the phenomenon of southerners fleeing capital cities in extended lockdowns and seeking a northern sea change.
CoreLogic head of research Eliza Owen said there had been “a drastic reduction” in rental stock, which would contribute to rent increases.
While there was less than 2000 properties available to rent in the June quarter, Australian Bureau of Statistics data showed there were 500 new workers in the region.
“Data from Airbnb of the Cairns urban centre also shows a sharp uplift in returns from short-term rental accommodation between late 2020 and June 2021,” Ms Owen said. “As increased tourism to the region creates more housing demand, supply could be tightened if investors opt to let their property as short term, rather than longterm rental accommodation.”
She said migration from Melbourne was accelerated as working remotely became normalised.
Nationwide, there’s a rental crisis with a 10-year rental vacancy low of 1.7 per cent, but it is exacerbated in the Far North at less than 1 per cent.
Ms Owen said the spike in rent prices was also due to the same reasons there’s been a real estate boom, including a swift economic recovery as restrictions eased.
Although rent in the Cairns region jumped by 7.9 per cent, minimum award wages increased by just 1.75 per cent.
Rent rocketed by 21.8 per cent in Darwin and 7.3 per cent in Brisbane – but with people evidently fleeing Melbourne, rent there was down by 1.4 per cent.
Kate Colvin from Everybody’s Home said many people were in a precarious situation and social housing needed to be a priority.
“Without access to safe secure housing, people cannot lead fulfilling lives of any kind,” she said.
CoreLogic data on the suburbs where rent increased the most shows it costs $553 a week to live at Clifton Beach, while Innisfail is cheapest at $316.
I have met a lot we of families and are all in the same least situation, but at we are not sleeping in cars Bec Graham
This is not what we had planned but we feel like we are making a difference for families Wayne Hutchison