“Yes, times are tough. One of the concerns in our report is that when you look at the average median rent in … Darwin, Palmerston, Katherine, Alice Springs … all of the properties would put anyone on a low income into extreme housing stress. They’re all paying substantially more than 50% even in some circumstances of their wage.” Jonathan Pilbrow talks to ABC Darwin ABC Alice Springs Radio about a lack of housing affordability revealed by concerning data in our latest NTCOSS Cost of Living report.
Adam Steer: So low income and remote area households are the hardest hit by rising transport, utilities and housing costs, leaving people with less money for other essentials like food, clothes and medical costs. This was the focus of Friday’s national Cabinet, where Prime Minister Anthony Albanese had this to say.
Prime Minister: Today we’ve determined and a range of reforms around the theme of a better future for the Federation. We all know that the challenge that we have with global inflation, with pressures on our economy, mean that the Commonwealth needs to work with state and territory governments in a cooperative way in order to achieve reform, to achieve our common objectives of lifting up the living standards of Australians, creating greater economic opportunities, creating employment and making sure that no one is left behind.
AS: So that’s the Prime Minister Anthony Albanese. So, of course we’ve got the federal budget and the Northern Territory budget just around the corner. So there’s a whole heap of people putting up their hands saying we need some money. The Northern Territory Council of Social Services has identified key ways both the Federal and Territory Government can better support residents in its recent cosy of no cost control, leaving it in a sentence.
It’s annoying.
Jonathan Pilbrow is from the Northern Territory Council of Social Services. Jonathan, welcome back to the program. According to the report, housing affordability in the NT has declined by almost 9% over the past five years. Is there an easy fix or is it to be expected due to factors like inflation?
Jonathan Pilbrow: Yeah Look, we’re all aware that there have been rising costs of living and these impacts on a range of areas for people’s household budgets, in particular housing and in, I guess for us in particular for rental prices, which are of concern for people on low income households who are just getting squeezed out of the market So, yes, times are tough. One of the concerns in the report is that when you look at the average median rent in each of the Darwin suburbs and in Palmerston, Katherine and Alice Springs, all of the properties would put anyone on a low income into extreme housing stress, whether that’s someone who’s a single aged pensioner, someone who’s a single jobseeker or someone on a minimum wage, as a sole parent with two children or a jobseeker sole parent with two children, they’re all paying substantially more than 50%, even in some circumstances they’d be paying up to 90% of their income if they were to pay the average median rental price. Now what happens is that people don’t rent because they can’t afford it, and so they end up staying with other family in overcrowded conditions or couch surfing or in extreme circumstances being homeless. So we need to do a lot more around providing more affordable and community housing in the Northern Territory to meet the needs of the many low income households that are struggling to find appropriate housing.
AS: Given, though, that our population has been stagnant, let’s just talk about Darwin and Palmerston for a little while. Our population has been relatively stagnant for quite some time. Why are we suddenly see, as far as you understand, in this inflationary rental situation, what’s going on here?
JP: Well, I guess historically we know that there’s been a massive shortfall in housing. And, you know, the estimate that NT costs is where we actually need to invest in another 12,000 homes in the Northern Territory to meet the current need. So, you know, for the last decades there’s been inadequate housing. The waiting list for public housing is around 6 to 8 years and that must be extremely concerning for people who are applying for housing.
Very discouraging when you put an application in knowing you’ve got about eight years to wait and what you do in that intervening period. So we’re talking about a historical shortfall that just hasn’t been addressed to the level that’s required.
AS: And so those 12,000 homes. You’re also including the constant need for more accommodation and more houses within remote communities, are you?
JP: Oh, absolutely. Yeah, absolutely. Yep. Includes all remote communities. Yeah. So across the territory that’s, the shortfall.
AS: And how are you aware how many are in the pipeline. We need 12,000. How many is. The government said they’re building 400.
JP: Yeah. Look, to be honest, I don’t have those figures at my disposal. But yeah, there’s clearly a massive shortfall and, you know, we need to start addressing that as an urgent matter of priority. Okay.
AS: Well, let’s move to renters. I had a look last night at trying to rent a two bedroom unit, just one bathroom, two bedroom unit in and around Darwin.
You got something you need to tell us What’s going on?
JP: It is like for a lot of places, it’s $500 a week, $550 I was a bit I was a bit taken aback by the prices What would you you’re calling for amendments to the Residential Tenancy Act. What are they exactly?
JP: You know, specifically the call is around having reasonable rent increases to help address the current crisis rather than I guess what has been happening with prices have been going up quite regularly and very steadily. We’d like to see something in place to ensure that any increases are reasonable and don’t put people into further housing stress. I mean, you talk about that average price of about $550 in Alice Springs as a three bedroom house, the median price is 560. It’s 600 in Darwin north coast or 595 east. So we are seeing these very, very high prices and we look at a national comparison that also shows that the Northern Territory is quite unaffordable compared to other states and territories. So it’s an absolutely a priority issue that we need to address.
AS: Jonathan, good to talk to you this morning. Thank you so much for your time. Let’s we’ll talk post-Budget or probably pre-budget, I reckon. Thank you.