The Guardian gaslights on rental crisis

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Check out Cait Kelly from The Guardian’s explanation for the massive rise in the number of people seeking share housing (discussed in my earlier post):

People leaving share houses during the pandemic lockdowns in search of more space are touted as one key reason behind the rise in low vacancy rates and high rents.

But community manager at Flatmates.com.au, Claudia Conley, said the trend is reversing.

“The volume of traffic we’ve seen in October we don’t usually see until December, indicating that demand for share accommodation is heating up well ahead of our peak season,” Conley said.

As the housing crisis continues to push people into homelessness, Everybody’s Home is calling for an ambitious plan of making one in 10 dwellings social housing over the next decade.

I received the media release from REA Group regarding the Flatmates.com.au data, and nowhere did it mention that “people leaving share houses during the pandemic lockdowns in search of more space” as a reason for the sharp lift in the number of Aussies seeking share housing.

Instead, Claudia Conley, Flatmates.com.au Community Manager, noted that “more Australians are turning to share accommodation as pressures on the rental market and a cost-of-living crisis fail to die down”.

As usual, The Guardian has failed to mention the primary driver of Australia’s rental crisis, which has driven Australians into share housing and homelessness:

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Historical net overseas migration

An estimated 500,000 net overseas migrants landed in Australia in the 2022-23 financial year, which has pushed rental listings and vacancy rates to record lows and sent rental price inflation soaring.

Why won’t The Guardian be honest and mention the immigration elephant that is trampling renting Australians?

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.