“We have seen big increases in the price of rent,and because young people are more likely to be renters,there is a large housing-related cost of living burden on them,” says Associate Professor Sam Tsiaplias,who works on the gauge and cost of living research.
“People don’t know when the cash rate is going to stop going up,which creates uncertainty and some fear in the market,” he says. This fear is being internalised by young people who are attempting to establish financial stability and routines in their lives.
Mia Horsfall,20,is a university student who recently struggled to find a place to live due to the pressure on Melbourne’s rental market.
Loading
She and her two housemates found while seeking a place to live in Melbourne’s inner north,they were competing against families and couples more than 10 years older than them,who had the financial means to offer above the asking price.
“We ended offering up on our rent because we were so worried about not finding a house at all,” Horsfall says. It was a difficult decision,which she says has had an impact on her budgeting.
“That $50 a week may not have meant much to the professionals with two stable incomes,but for young people with casual jobs it was a big deal,” she says. If her landlord were to raise her rent further,which is happening across Sydney and Melbourne,she wouldn’t have the savings or the ability to stay in her current house.