Add Category
Karina Roberts says repeated rent hikes have left her family languishing in debt as the cost of living outstrips their income.
- Mudgee locals are being forced to leave their home town as median rents increase by 45 per cent in five years
- Landlord profit margins have increased in the last 12 months, with gross rental yields rising to 4.1 per cent in regional NSW
- Across Australia rents have been hiked 3.5 per cent in the past three months
The 46-year-old cleaner lives in a government-subsidised house in the NSW country town of Mudgee but still cannot afford the mounting bills.
The mother-of-four was paying $186 per week when she moved in six years ago but is now paying $432 per week.
"You go through Housing Plus because they're cheaper than real estate … but we're struggling with paying rent," Ms Roberts said.
"It's very hard. I can't even afford to pay bills. I'm struggling to pay for my electricity. I'm in $7,000 debt on my electricity."
New data from realestate.com.au shows that Mudgee's median rent has increased from $370 per week in 2018 to $540 per week, a 45 per cent increase in five years.
CoreLogic figures show rents across Australia have risen 2.5 per cent in the past three months while vacancy rates remain "well below" pre-COVID levels.
Charity volunteer Donna Collins has seen born-and-bred Mudgee locals forced to leave their home town because they cannot afford the rent.
"It's heartbreaking, and some of them are third and fourth generation. But they can't afford to live here," Ms Collins said.
Ms Collins runs the We Care Community Shop, which on several occasions has run out of winter clothing to give to families who are struggling with their power bills.
She said the "rental crisis" has forced full-time workers to sleep in cars or rely on charity shops like hers in order to get by.
Mudgee real estate agent Andrew Palmer said the cost of rent is primarily being driven up by a shortage of supply.
The Property Shop director said the supply shortage is likely to worsen in the near future due to several incoming major projects, such as the Orana Renewable Energy Zone.
Several large mining projects in the Mudgee district have expanded in recent years, increasing the town's population and the demand for housing.
The increase in well-paid mining jobs has also resulted in the town's median household weekly income rising from $1,256 in 2016 to $1678, according to Census data.
The supply and demand squeeze has pushed weekly rents higher.
Mr Palmer said attempts to build more houses were being slowed down by government bureaucracy.
"Local government red tape, state government red tape, that adds a considerable amount of time, and time means expense," Mr Palmer said.
Mid-Western Regional Council Mayor Des Kennedy declined to respond to Mr Palmer's comments.
Mid-Western Regional Council also declined comment.
Mr Palmer does not expect the rental squeeze to ease in the near future.
"We're going to have a huge demand here, and unfortunately, we don't have the property or alternative types of accommodation ready to go right now.
"Unfortunately, that means those people at the cheaper end of the scale are going to probably feel it a little bit more as competition rises for rental property."