Logan’s housing crisis is about to worsen as the National Rental Affordability Scheme (NRAS) comes to an end.
According a recent quarterly federal government report, over 350 affordable Logan properties under the NRAS scheme, which subsidises housing providers to rent out properties for at least 20% below market rates, will be phased out by 2026.
House property agent Michael Wardlaw said this will mean low-income renters in Logan will face steep increases or be forced to move out.
“This is just adding more pressure to the already extremely tight rental market and forcing people to move to find something affordable,” he said.
“You are now finding rental homes to be $700 plus a week for a 4-bedroom home, what used to be $450 a week previously and that’s just increased in the last two years.
“I know a family that are renting in the Eagleby area and their rent has just increased from $550 a week to $725 a week and that’s for a 4-bedroom home – that’s a significant increase.”
According to the government report there are seven Logan suburbs that will be hit the hardest with NRAS allocations set to expire by 2026 – 92 properties in Eagleby, 74 in Marsden, 36 in Bethania, 35 in Waterford, 29 in Beenleigh and Loganlea and 25 in Bahrs Scrub.
Mr Wardlaw said something needs to be done.
“When families get that tap on the shoulder to move out or are forced to pay rent they can’t afford, it’s adding more pressure on our rental system and we are already seeing a significant housing crisis, something needs to be done,” he said.
“A lot of families are having to get more family members to come in and live with them to be able to afford the rent hike and a lot are having to turn their garage into another living space.
“It’s hitting the back pocket of everyone.”
Overall, Queensland is set to be the hardest hit by the final phasing out of the scheme, losing 6999 affordable properties by 2024 and 7602 in total by 2026.
Everybody’s Home national spokesperson Kate Colvin said greater action must be taken now to alleviate the housing crisis.
“Despite being one of the richest nations in the world, Australia is facing a full-blown housing crisis with more than a million low-income Aussies living in housing stress,” she said.
“Since the start of the Covid pandemic, rents have increased 26 per cent, hitting record highs in many suburbs.
“The winding down of the National Rental Affordability Scheme will see Australia lose almost 30,000 affordable homes, effectively negating any impact of the Housing Australia Future Fund.”
