Renters in financial quagmire

THREE in four renters are worried about their financial wellbeing with about half concerned cost-of-living pressures will overtake them.

The figures paint a worrying picture as Toowoomba follows the rest of Australia into a recession, spurred on by the COVID-19 shutdown.

They were released following a recent study by the Consumer Policy Research Centre that found a renter felt more exposed to a looming recession than homeowners.

It found 64 per cent of homeowners were concerned about their financial wellbeing, with 31 per cent worried about the cost of housing.

Just less than half of all renters surveyed had dipped into their savings to make ends meet, with 20 per cent accessing their superannuation early.

About 37 per cent used credit cards to pay bills.

This is compared to 28 per cent of homeowners who are living off their credit cards, 28 per cent dipping into their savings and only eight per cent accessing their super early.

Consumer Policy Research Centre CEO Lauren Solomon said the data raised serious concerns about the future debt of renters.

“Despite COVID-19 underscoring our most basic need for safe, secure and affordable homes, Australia’s housing market continues to divide the nation,” she said.

“Renters shouldn’t be living as second-class citizens – if we’re all in this together, the burden must be fairly shared.”

Ms Solomon added that the renters did not have the freedom to make their living arrangements more manageable under COVID-19 restrictions.

“Renovating a space to make room for parents and children working from home is a privilege not afforded to most Australian renters,” she said.