‘Forever renting’ is common in New York, California and Europe. What lessons can we learn? |
For a growing swathe of Australians, “forever renting” has become the new norm.
Renting is no longer a youthful rite of passage or a transitional phase on the way to home ownership.
Given these circumstances, how do we get housing security for renters? What can we learn from rental market regulations elsewhere?
Rent control is common overseas
A different ideological approach to housing in other nations has led to policies that support long-term renting, through regulated rents or subsidies, long-term leases and stronger tenants’ rights.
Rent control or regulation is common across Europe, New York City, the major cities of California, and several Canadian provinces. In Australia, only the Australian Capital Territory has adopted rent controls.
We all recognise that utilities such as water and electricity are basic services that everyone needs to live. That is why they are regulated and monitored. Housing, too, is recognised as a basic human right, so similar regulations in the rental housing system should not be controversial.
In New York – the epicentre of global capitalism – around 50% of apartments are rent stabilised, meaning rents can only be increased by a regulated amount.
Australia needs........