The Albanese government’s claim that they will solve the housing crisis by increasing housing supply is overly simplistic and insufficient. In the face of a growing housing crisis that has left countless Australians struggling to secure stable and affordable homes, new visions for housing reform are gaining momentum. These visions seek to tackle the root causes of the crisis and fundamentally transform the housing landscape to prioritise people over profit.
The government’s approach to solving the housing crisis relies on the premise that boosting the supply of housing units will naturally lead to lower prices and greater affordability. While this may seem like a straightforward solution, it fails to consider several critical factors: profit-driven developers, gentrification and displacement, market volatility and environmental concerns.
To effectively address Australia’s housing crisis, we must move beyond the superficial supply-side approach and embrace a more comprehensive strategy. In the ongoing struggle for housing justice, rent control has emerged as a critical policy tool aimed at protecting tenants from the ravages of unbridled capitalism. Yet, it faces staunch opposition, receiving criticism about its efficacy and consequences.
Rent control involves creating government regulations that limit the amount by which landlords can increase rent on residential properties. These regulations would be supported by strengthening tenant rights and introducing just-cause eviction laws. Together, these policies would ensure that housing remains accessible and affordable for tenants of low and middle incomes, preventing exploitative practices that lead to exorbitant rents and mass displacement.
Rental regulations which safeguard tenants from sudden and unfair increases in rent or unjust eviction, ultimately ensure a stable living environment. This sense of stability not only fosters stronger community bonds but also helps lower the risk of homelessness.
Rent control policies also reduce economic inequality by placing limits on landlords’ ability to amass excessive profits and accumulate vast wealth. In doing so, they promote greater economic equity and social justice.
Critics argue that rent control discourages landlords from investing in property maintenance, leading to deteriorating housing conditions. This argument overlooks the capacity to accompany the introduction of rent control with supporting regulation to landlords to act responsibly and to incentivise maintenance, such as mandatory inspections and penalties for neglectful landlords.
Some suggest that rent control reduces the incentive to build new rental units, exacerbating housing shortages. Comprehensive housing policies can stimulate the construction of affordable units, ensuring that rent control does not contribute to shortages. Critics also argue that rent control primarily benefits affluent tenants who secure rent-controlled units, leaving out those in dire need.
This argument appears to overlook the fundamental imperative of addressing the pressing issues of homelessness and housing insecurity. Furthermore, it is essential to recognise that the substantial majority of rental properties derive from the existing housing stock. A significant portion of landlords, rather than contributing to the expansion of housing supply, opt to rent out properties that would otherwise be within the reach of first-time homebuyers.
The proposal to institute a rental cap, while well-intentioned, may not exert a significant deterrent effect on landlords’ motivation to invest in new housing. The housing market dynamics are such that there is ample — too much — profit to be made from housing. Instead of favouring landlords, governments should consider curbing their buying power by eliminating tax benefits like negative gearing and capital gains discounts, which cost the government significant sums annually and contribute to rising housing costs.
Arguments against rent control also often appear to be rooted in misconceptions about how this kind of regulation would work or a failure to consider the broader housing context. Rent control, when properly implemented alongside other housing policies, can be a crucial step towards achieving housing justice and ensuring that all individuals have access to safe, affordable, and dignified housing.
While this vision for housing reform may face political challenges and opposition, it would represent a necessary shift in priorities. By putting people before profit and addressing the systemic inequalities that underpin the housing crisis, rent control would create a more just and equitable society where housing is a right, not a privilege.