Heat or rent? The brutal trade offs Aussies now face

Survey finds renters and homeowners skipping meals, driving, and medical care

Heat or rent? The brutal trade offs Aussies now face

News

By Mina Martin

Reducing energy use is now the most common sacrifice Australians are making to afford their rent or mortgage, with many also limiting driving, skipping meals, and delaying medical appointments, according to a new national survey.

Everybody’s Home’s Breaking Point report, based on responses from more than 1,100 Australians and released ahead of the festive season, paints a stark picture of the trade-offs households are making to keep a roof over their heads. Three in five respondents (60%) said they were in housing stress or insecurity, and half (50%) reported cutting back on energy use, including heating and cooling, in the past year.

Most common sacrifices: energy, food, healthcare, and driving

The survey found:

  • 50% reduced their energy use, including heating and cooling, to cope with housing costs – the most common sacrifice
  • 42% avoided the doctor or other appointments
  • 38% reduced driving
  • 30% relied on credit cards or Buy Now, Pay Later
  • 28% skipped meals
  • 20% sought help from food banks or charities
  • 37% went without essentials such as food or medical care to afford energy bills
  • 33% had difficulty paying or were behind on their energy bills in the past year

Housing quality is also a major concern. Half of respondents said the condition of their home has either made them or someone in their household sick (23%) or they were unsure (27%). Many reported lacking basic features such as:

  • external wall insulation (90%)
  • draught sealing like door seals (83%)
  • ceiling insulation (63%)
  • a working heater (46%)
  • a working air conditioner or cooler (38%)

Everybody’s Home spokesperson Maiy Azize (pictured left) said the findings highlight just how far people are being pushed.

“Housing costs in Australia are so high that people are making drastic trade-offs to cling onto keeping a roof over their heads – from reducing energy use and driving, to skipping meals, and delaying doctor appointments," Azize said.

“The housing crisis is reshaping how Australians live. Sacrifices like these might be expected in a war or pandemic – not today in one of the richest countries on earth, where governments have the power to fix the housing crisis.

“These trade-offs expose just how unfair the housing market is and how deep the crisis runs. Australians shouldn’t have to make huge sacrifices just to prop up landlords or compensate for government policy failure and inaction.

“Our survey shows the most common way respondents are coping with rising housing costs is by cutting back on energy use. People are spending record amounts to stay housed, but many can’t afford to be comfortable, healthy, and safe in them.”

‘Heartbreaking’ stories prompt calls for minimum standards and social housing

Azize said many respondents were living in substandard homes and facing “energy hardship” that goes well beyond rising electricity prices.

“Australians are forced to freeze in winter and swelter through summer because they’re sacrificing comfort to afford their housing costs, and because they live in substandard homes that lack basic heating, cooling, and insulation," she said.

“Energy hardship stems beyond rising electricity bills, it’s also driven by poor housing conditions. Leaky insulation, draughty windows, and inefficient appliances increase energy use and push costs even higher.

“Any federal plan to reduce power prices must include lifting home energy efficiency and enforcing minimum standards. If not, Australians will keep footing huge energy bills and remain trapped in unsafe homes that pose serious risks to their health and wellbeing.”

Essential workers and rising prices add to pressure

The Everybody’s Home report lands as pressure mounts on policymakers from multiple fronts. 

Just days earlier, Anglicare Australia released national rental “heatmaps” showing essential workers – including nurses, cleaners, and hospitality staff – can no longer afford to rent in large parts of the country, renewing calls to reform investor tax breaks, The Courier Mail reported.

Anglicare analysed more than 51,000 rental listings against the wages of 16 frontline occupations, finding “the very people who keep the country running are being priced out of their own communities”. 

“Essential workers keep our communities running, yet many can’t afford a place to live,” Anglicare Australia executive director Kasy Chambers (pictured right) said. “We need tax reform that puts people in need of a home, not just investors, at the centre of our housing system.”

At the same time, home prices continue to climb. PropTrack’s latest Home Price Index shows national values rose another 0.5% in November, pushing prices to a new record. Nationally, home prices are up 8.7% over the past year, adding about $77,900 to the value of the median home, now $873,000 (houses and units combined). Perth (+15.5%), Darwin (+14.1%) and Brisbane (+13.7%) recorded the strongest annual gains among the capitals, while regional Western Australia (+13.2%) and regional Queensland (+12.5%) led the rest of the country.

Taken together, the data suggest more Australians are being squeezed between rising housing and energy costs, stagnant affordability and an undersupply of genuinely affordable rentals – leaving many with no option but to cut back on comfort, health and essentials just to stay housed.

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