Twelfth interest rate rise will force more families intro extreme housing distress

Media release

06 June 2023

The Reserve Bank’s decision to increase interest rates will further heap pressure on families who are struggling to stay afloat in the private rental market and demonstrates the acute need for investment in social and affordable housing, said the Community Housing Industry Association NSW (CHIA NSW).

“Twelve interest rate rises in the space of one year is bad news for vulnerable renters who will be pushed into more dire situations,” said Caitlin McDowell, Head of Policy at CHIA NSW

“Renters will ultimately bear the brunt of rate rises as landlords increase rental prices which have already surged high enough to push unprecedented numbers into severe housing stress.”

“In Sydney, the average tenant is already paying over $700 a week in rent. That is completely unaffordable for so many families and individuals in NSW.”

Ms McDowell said that building social and affordable housing in NSW was crucial for alleviating some of the pressure families in NSW are facing, with more interest rates rises predicted.

“Recent decades have seen chronic underfunding of social and affordable housing in NSW. But the new State Government can alleviate the housing crisis families in NSW are facing, by making a significant investment in social and affordable housing,” said Ms McDowell.

Media Contact: Tanya Evans, 0424 156 146