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Commonwealth Rent Assistance and the Spatial Concentration of Low

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Commonwealth Rent Assistance and the Spatial Concentration of Low Commonwealth Rent Assistance and the spatial concentration of low income households in metropolitan Australia authored by Bill Randolph and Darren Holloway for the Australian Housing and Urban Research Institute UNSW-UWS Research Centre June 2007 AHURI Final Report No. 101 ISSN: 1834-7223 ISBN: 1 921201 90 8 ACKNOWLEDGEMENTS This material was produced with funding from the Australian Government and the Australian States and Territories. AHURI Ltd gratefully acknowledges the financial and other support it has received from the Australian, State and Territory governments, without which this work would not have been possible. AHURI comprises a network of fourteen universities clustered into seven Research Centres across Australia. Research Centre contributions, both financial and in-kind, have made the completion of this report possible. DISCLAIMER AHURI Ltd is an independent, non-political body which has supported this project as part of its programme of research into housing and urban development, which it hopes will be of value to policy-makers, researchers, industry and communities. The opinions in this publication reflect the views of the authors and do not necessarily reflect those of AHURI Ltd, its Board or its funding organisations. No responsibility is accepted by AHURI Ltd or its Board or its funders for the accuracy or omission of any statement, opinion, advice or information in this publication. AHURI FINAL REPORT SERIES AHURI Final Reports is a refereed series presenting the results of original research to a diverse readership of policy makers, researchers and practitioners. PEER REVIEW STATEMENT An objective assessment of all reports published in the AHURI Final Report Series by carefully selected experts in the field ensures that material of the highest quality is published. The AHURI Final Report Series employs a double-blind peer review of the full Final Report – where anonymity is strictly observed between authors and referees. i CONTENTS CONTENTS ....................................................................................................................II EXECUTIVE SUMMARY ................................................................................................1 Introduction .....................................................................................................................1 Methodology....................................................................................................................2 Spatial concentration of private rental low income households ......................................3 Socio-economic characteristics of private rental low income households ......................3 Changes in the spatial concentration of private rental low income households..............3 The location of low cost housing stock............................................................................4 Commonwealth Rent Assistance in 2001 .......................................................................4 Public housing waiting lists in 2001.................................................................................4 The relationship between public housing waiting lists, Commonwealth Rent Assistance, low cost rental stock and private renter low income households in 2001 .........................................................................................................................4 The changing location of Commonwealth Rent Assistance recipients in 2000-2005......5 The changing relative distribution of Commonwealth Rent Assistance recipients in 2000-2005 ................................................................................................................5 The labour market profile of privately renter low income working households................6 1 INTRODUCTION ......................................................................................................7 2 BACKGROUND .......................................................................................................9 2.1 Introduction ..............................................................................................................9 2.2 Economic changes...................................................................................................9 2.3 Demographic and social changes ..........................................................................10 2.4 Commonwealth Rent Assistance ...........................................................................10 2.5 Housing and employment ......................................................................................11 2.6 Disadvantage in the private rental market..............................................................11 2.7 Housing policy issues.............................................................................................13 3 METHODOLOGY ...................................................................................................14 3.1 Introduction ............................................................................................................14 3.2 Imputing missing household income figures from Census data.............................14 3.3 Other Data sources ................................................................................................15 4 WHAT IS A LOW INCOME HOUSEHOLD?..........................................................16 4.1 Introduction ............................................................................................................16 4.2 Our preferred approach..........................................................................................18 4.3 Comparing the populations of this project to the Yates et al (2003) study.............19 4.4 Examining the changes in PRLIHs over time.........................................................19 5 LOW INCOME HOUSEHOLDS IN THE PRIVATE RENTAL MARKET ................25 5.1 Introduction ............................................................................................................25 5.2 The relative position of PRLIH in the housing market ............................................25 5.3 Location of low income households in the private rental market............................29 5.3.1 Concentrations at the LGA/SLA level .........................................................29 5.3.2 Concentrations at the suburb and postcode level ......................................31 5.4 Profile of low income households in the private rental market ...............................42 5.4.1 Dwelling type ..............................................................................................42 5.4.2 Rent paid ....................................................................................................42 ii 5.4.3 Household type...........................................................................................42 5.4.4 Age .............................................................................................................42 5.4.5 Country of birth ...........................................................................................43 5.4.6 Education....................................................................................................43 5.4.7 Occupation .................................................................................................43 5.4.8 Industry.......................................................................................................43 5.4.9 Income........................................................................................................44 6 CHANGES IN THE DISTRIBUTION OF LOW INCOME PRIVATE RENTERS IN 1991-2001 ..............................................................................................................53 6.1 Introduction ............................................................................................................53 6.2 Changes in the number and location of private renter low income households, 1991-2001 ..............................................................................................................53 6.3 Summary................................................................................................................54 7 AN EXAMINATION OF THE LOW COST PRIVATE RENTAL STOCK ................61 7.1 Introduction ............................................................................................................61 7.2 An analysis of very low cost private rental stock – LGA level ................................61 7.3 An analysis of low cost private rental stock – LGA level ........................................69 7.4 Summary................................................................................................................69 7.5 An analysis of very low cost private rental stock – postcode level.........................77 7.6 An analysis of low cost private rental stock – postcode level.................................79 8 THE RELATIONSHIP BETWEEN LOW INCOME PRIVATE RENTERS AND HOUSING ASSISTANCE ......................................................................................81 8.1 Commonwealth Rent Assistance in 2001 ..............................................................81 8.2 Public housing waiting lists in 2001........................................................................93 8.3 The relationship between public housing waiting lists, Commonwealth Rent Assistance, low cost rental stock and PRLIHs in 2001 ..........................................93 8.4 The changing location of Commonwealth Rent Assistance
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