Published Wednesday, 24 January, 2007 at 09:17 AM

Minister for Public Works, Housing and Information and Communication Technology
The Honourable Robert Schwarten

RENTAL SQUEEZE CRUSHING LOW INCOME EARNERS

Public Works, Housing and Information and Communication Technology Minister Robert Schwarten said new figures indicated the rental squeeze was crushing Queenslanders on low incomes.

Minister Schwarten released new Residential Tenancies Authority figures today which indicated that rent has risen in Queensland in the past year, and has gone up by nearly 50% on average in five years.

“The collapsing private rental market means surging rents, and low income earners are being pushed out of the market.

“The Commonwealth Government has abandoned low income earners in the housing market.

“Between December 2001 and June December 2006, the median rent for 3-bed houses in Queensland increased by around $85 per week, or around $4420 per year.

“In the same period, the payment rate for Commonwealth Rent Assistance for a family with 1 or 2 children increased by a miserable $5 per week, or $270 per year!

“No wonder people are clamouring to get on Queensland Social Housing waiting lists. They can’t afford the private market anymore. In the period from 2002 to 2006 the number of people on the waiting list for social housing has grown from 27,000 to over 33,000.

“The collapsing private rental market is exacerbated by policies of the Federal Government. They have drained funding out of public housing believing that the private market can solve everyone’s housing needs.

“They have increased Public Housing funding to Queensland by less than the rate of inflation, while at the same time the cost of laying a brick in Queensland has trebled.

“Now we see the folly of their policy. Spiralling rents and reports of rent bidding.”

Mr Schwarten has been looking for solutions to the rental crisis.

“Following a community Cabinet in Mackay last year, I devised a plan – Homelink – which would provide 1000 new private low cost rental homes in Queensland.”

“It would require funding and co-operation from all 3 levels of Government. The Federal Government needs to agree to pay the rent assistance direct to the owner of the homes instead of the tenant.

“The Queensland Government has put its money on the table for this scheme – as yet nothing has been forthcoming from the Federal Government.”

MEDIA CONTACTS: DAVID SHANKEY 32371184

Median Weekly Rents for 3 Bedroom Houses in selected areas of Qld

Selected areas of Qld	Dec-01	Dec-05	Dec-06	Percent increase Dec 05 - Dec 06	Percent increase Dec 01 - Dec 06 (5 yrs)
	Rent ($)	Rent ($)	Rent ($)	Percent increase Dec 05 - Dec 06	Percent increase Dec 01 - Dec 06 (5 yrs)
Brisbane	200	270	300	*11.1%*	*50.0%*
Bayside	195	260	290	*11.5%*	*48.7%*
City Inner	260	320	360	*12.5%*	*38.5%*
North - Inner	230	290	320	*10.3%*	*39.1%*
North - Outer	185	250	275	*10.0%*	*48.6%*
North West - Inner	250	310	335	*8.1%*	*34.0%*
North West - Outer	195	265	290	*9.4%*	*48.7%*
South - Inner	200	270	300	*11.1%*	*50.0%*
South - Outer	185	250	270	*8.0%*	*45.9%*
South East - Inner	225	290	320	*10.3%*	*42.2%*
South East - Outer ^	200	260	300	*15.4%*	*50.0%*
South West - Inner	210	285	315	*10.5%*	*50.0%*
South West - Outer ^	180	245	265	*8.2%*	*47.2%*
Bundaberg	140	200	220	*10.0%*	*57.1%*
Cairns *	190	270	285	*5.6%*	*50.0%*
Gladstone	165	210	260	*23.8%*	*57.6%*
Gold Coast	230	320	340	*6.3%*	*47.8%*
Gold Coast North	210	310	320	*3.2%*	*52.4%*
Gold Coast Central		330	350	*6.1%*
Gold Coast South	240	330	350	*6.1%*	*45.8%*
Gold Coast West		300	320	*6.7%*
Mackay *	170	280	340	*21.4%*	*100.0%*
Rockhampton	150	190	245	*28.9%*	*63.3%*
SunshineCoast ~	195	280	300	*7.1%*	*53.8%*
Caloundra (S) Pt A	200	280	295	*5.4%*	*47.5%*
Maroochy (S) Pt A	195	280	300	*7.1%*	*53.8%*
Noosa (S) Pt A	195	275	290	*5.5%*	*48.7%*
Townsville	185	240	270	*12.5%*	*45.9%*

* The median rents are based on expanded areas due to the amalgamation of local government areas.




~ SunshineCoast includes the coastal strip represented by Part A of the councils of Caloundra, Maroochy & Noosa

^ The relatively small number of bond lodgements for properties in these areas make median rent values less reliable
n.a. - Not Available (number of bonds lodged too small (less than 5))
Where the number of lodgements is small the rent values should be used with caution.
Source: Residential Tenancies Authority, Rental Bond Lodgements

Median Weekly Rents for 3 Bedroom Houses for Qld Statistical Divisions

STATISTICAL DIVISION	Dec-01	Dec-05	Dec-06	Percent increase Dec 05 - Dec 06	Percent increase Dec 01 - Dec 06 (5 yrs)
	Rent ($)	Rent ($)	Rent ($)	Percent increase Dec 05 - Dec 06	Percent increase Dec 01 - Dec 06 (5 yrs)
Brisbane	185	250	270	8.0%	45.9%
Moreton	210	290	300	3.4%	42.9%
Darling Downs	150	200	210	5.0%	40.0%
South West	120	175	200	14.3%	66.7%
Wide Bay-Burnett	140	200	215	7.5%	53.6%
Central West	90	110	160	45.5%	77.8%
Fitzroy	160	210	250	19.0%	56.3%
Mackay	160	280	330	17.9%	106.3%
Northern	175	230	260	13.0%	48.6%
Far North	180	250	275	10.0%	52.8%
North West	190	260	300	15.4%	57.9%
Queensland	180	245	265	8.2%	47.2%

* Median weekly rents are based on new bonds lodged with the RTA during the month
Source: RTA, Rental bond lodgements