Submission to “The worsening rental crisis in Australia” Senate Inquiry
Cameron Murray
Additional contact information
Cameron Murray: The University of Sydney
No 6mctg, OSF Preprints from Center for Open Science
Abstract:
• After eight years of rents rising slower than other consumer prices, rents have now begun rising more quickly. • If this is a rental crisis today, then almost every year for the past two centuries has been a rental crisis. • The rental price adjustments being observed in Australia and globally in 2022 and 2023 reflect the normal operation of housing markets. • Cheaper housing is usually achieved by public provision of subsidised rental or ownership options, as it was historically in Australia, and is today in many places. • Outside of these effective options, outcomes in private rental markets can be marginally improved by smoothing out sudden changes in rents. • This can be done by regulating how quickly rents can be increased in a period, usually at a rate linked to a local price index, such as CPI inflation plus 3% points. • To avoid tenants being evicted in order to raise rents above this limit, protections can be enacted to enable tenants to stay, even at the end of a fixed-term lease, by limiting evictions to only being allowed for three reasons: 1. The landlord selling 2. The landlord moving into the home 3. Major renovations being undertaken. • Claims that supply will fix rents, or stories about landlords selling if rents are regulated in any way, should be ignored. These stories are told by groups whose financial interests align with higher rents, not lower rents.
Date: 2023-07-31
New Economics Papers: this item is included in nep-ure
References: Add references at CitEc
Citations:
Downloads: (external link)
https://osf.io/download/64c850ec2fe496174661b1e2/
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:6mctg
DOI: 10.31219/osf.io/6mctg
Access Statistics for this paper
More papers in OSF Preprints from Center for Open Science
Bibliographic data for series maintained by OSF ().