Australian Rental Crisis

1. SUMMARY

From the YouTube video “Rental Crises Case Study in Australia”, we got an extensive review of the
major rental crisis affecting the people living in Australia. The video showed us a grisly image of
increased rental prices and absence of inexpensive houses causing critical anguish for the individuals
and people living in Australia. It showed us a range of reasons following this crisis, including
shortage of houses and global economic influences such as pandemic. Stories based on real life has
been shared in this video depicting the toll of the crises with many renters facing trouble to make ends
meet or being priced out of the market completely. It is a situation which demands an intense
immersion. This serious situation is not only scrambling lives but also causing a threat towards the
economic growth of the country. It’s important to understand the major causes behind the crisis to
determine effective solutions.

The chasm between the wage growth and rental increase has been continuously widening, with wages
were left relatively constant, the proportion of income that individuals and families in Australia need to
assign towards rent is on the uprise. This causes financial problems for those who have low incomes,
who are over affected by the crisis. People having lower income are often left with very less amount of
money after paying rent, pushing them towards financial problems and insecurities. To deal with this
situation or to overcome this problem, Australian government can increase housing supplies as the
government of Australia can arbitrate by promoting construction at very low cost and enforcing
regulations that will further inspirit the private sector to invest in reasonable rental properties.

Strict zoning regulations limits the range of residential developments, unintentionally contributing
towards the scarcity of reasonable rental housing. Zoning laws directs how land in a particular area can
be used, frequently restricts the residential developments to certain districts. With the help of amending
zoning laws in cities and towns can increase the number of areas where residential development is
allowed or can be permitted in future. For case, managing regulations that can allow for higher density
housing in the areas which are generally reticent for single families can lead to a slight increase in the
available rental properties.

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 Australian Rental Crisis

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TABLE OF CONTENTS

1. Summary… ....................................................................................................................... 1

2. Introduction… ................................................................................................................... 4

3. Analysis of Case Study… ................................................................................................. 5

3.1 Risk Matrix… ...............................................................................................................8

3.2 Stakeholder Matrix… .................................................................................................. 8

3.3 VRIO Analysis… ........................................................................................................ 9

3.4 Resource Based View (RBV)…................................................................................... 9

3.4.1 Valuable Resources… ........................................................................................9

3.4.2 Rare Resources ................................................................................................... 9

3.4.3 Inimitable Resources ........................................................................................ 10

3.4.4 Organized Resources… .................................................................................... 10

3.5 Competitor Analysis…............................................................................................... 10

3.6 Core Competency Analysis… .................................................................................... 10

3.7 PESTLE Analysis…................................................................................................... 11

3.7.1 Political….......................................................................................................... 11

3.7.2 Economic…....................................................................................................... 11

3.7.3 Social… ............................................................................................................. 11

3.7.4 Technological… ................................................................................................11

3.7.5 Legal.................................................................................................................. 11

3.7.6 Environmental… ............................................................................................... 11

4. Customer Persona…........................................................................................................... 12

5. Gantt Chart… ..................................................................................................................... 13

6. References… ...................................................................................................................... 14

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 Australian Rental Crisis

2. INTRODUCTION

According to the case study and the video which has been uploaded on YouTube “Rental Crisis Case
Study in Australia” reflects about the crisis that rental market in Australia is currently facing a severe
crisis marked by surging prices and a lack of affordable housing causing momentous misery among
many families living in Australia. We can overcome the crisis by introducing and enhancing more
rental supply programs, providing new measures of regulations that can limits the increase in rent and
can help the tenants to improve their living.

S.J. Enterprises Pvt. Ltd. which an IT company from India has also aimed to help and provide support
towards Australia’s housing crisis by introducing more improved and innovative strategies as they
believe that collaboration is an important to success and by coordinating with the Australian
government as well as with non-governmental such as NGO’s, we can easily access more funding and
support from other organizations and MNCs around the world. Along with that S.J. Enterprises has
also offered financial support by lending money at a very low interest rate and shared equity enterprises.
With these approaches S.J. Enterprises endeavors to make a helpful impact on the housing accessible
crises in Australia, providing a snug, satisfied and cheap houses for the citizens of Australia.

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 Australian Rental Crisis

3. ANALYSIS OF CASE STUDY

The housing affordability crises in Australia has many social consequences that affected many segments
of the Australian citizens, one of the most forbidding social consequence is the increase in homelessness
due to drastic increase in the cost of housing which many citizens found themselves unable to afford.
This not only impacted the citizens in Australia but also put pressure on social services and resources
in numerous ways, even the youth living in Australia are facing forbidding problems and challenges
while entering housing markets. High housing costs contribute towards the rental stress, where a huge
portion of income goes in rent which leaves little wage for other essentials such as education, food,
medicines etc.

Unsustainable housing caused noxious effects on mental as well as physical health, crowded and low
standards of living have increased the risk of illness and stress whereas homelessness has intensified the
mental health issue among the individuals. Access to education and employment is also a concern as
housing attainability impacts access to education as well as employment opportunities. People are
compelled to relocate towards the areas having more affordable houses, disorganizing children’s
education and inhibiting parent’s job prospects if they can’t confer to live near the employment areas.

A news clip from an Australian news channel have also arises showing the difficulties people are
facing as new records have been revealed rental affordability in Australia has now reached in its worst
phase as South Whales is the least affordable state in situation which is even more difficult for the
citizens having lower incomes and it is more unlikely to improve anytime soon finding a rental house.
The latest rental report shows only around a quarter of properties for rent in New South Whales are
actually affordable by the people. People having the household income of $110,000 renters earning
$699,000 per year can afford just 3% of the rentals, while those who were earning around $49,000 per
year have effectively step back from the market.

Rents have grown more faster than the incomes since the pandemic nationally rents are up to 38
percent which is almost twice the rate of an income of the people living in Sydney rents are $200 per
day. At the start of the pandemic the rents were lower of around $650 for three bedrooms which
further drastically increased over a year up to $700 which is now $900. $750 for a unit and $680
economists are forecasting little relief by adding more pressure on the Australian government to
address the rental crisis. A woman which is a single mother said that the worst part of being priced of
the rental market isn’t living in garage with her three children. It is not even the 150 plus failed rental
applications, it’s a worst feeling that she’s letting down her children. Another woman named Michaela

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 Australian Rental Crisis

Roberts took eight months to find a new place to rent in Mandurah, Western Australia, she visited
more than 600 places and moved three time and now she have a baby.

INTERNATIONAL STUDENT ENROLLMENTS AT AUSTRALIAN

UNIVERSITIES
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2006 2008 2010 2012 2014 2016 2018 2020 2022

ENROLLMENTS

Figure 1: Impact of (COVID-19) on international student enrollments at Australian universities

YEAR ENDED RENT ESCALATION

6

0
2019 2020 2021 2023

>1000 Km 500-1000 Km 100-500 Km 0-100 Km

Figure 2: Year Ended Rent Inflation

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 Australian Rental Crisis

RENTAL VACANCIES ARE NEAR RECORD LOWS

2022

2021

2020

2019

0% 1% 1% 2% 2% 3% 3% 4% 4% 5% 5%

South Whales Melbourne Sydney

Figure 3: Rental vacancies near record lows

RENT PRICES FOR NEW TENANTS IN AUSTRALIA

0
2011 - 2013 2014 - 2016 2017 - 2019 2020 - 2022

Houses Townhouses Apartments

Figure 4: Rent prices for new tenants

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 Australian Rental Crisis

3.1 Risk Matrix

Risk Category Information Concussion Employments

Economic Impact Economic High Low

Resilience

Financial Low Low

Resilience

Housing Availability Low High

Allowances

Affordability Low High

Real Estate Influence High Low

Interest Medium High

3.2 Stakeholder Matrix

Stakeholder Role Activity Significance

Financial Support Medium Low Medium

Government Medium Medium Medium

Development Low Medium High

External Influence Low Medium High

Tenants High High High

Communities Medium Low High

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 Australian Rental Crisis

3.3 VRIO Analysis

Valuable? Rare? Inimitable? Organized?

Yes Yes No No Economic Factors

Yes No Yes No Viral Outbreaks

Yes No Yes No Governmental

Strategies

Yes Yes Yes No Population

Statistics

Yes No Yes No Recommendations

3.4 Resource Based View (RBV)

3.4.1 Valuable Resources

Beneficial resources or valuable resources are the useful or a valuable possession but in the
context of rental crisis which are been faced by the citizens of Australia can be the problems
and difficulties of having shortage of homes, drastic increase in rents and how it’s affecting
the economy of the nation. These resources are the basic needs as they can create problems
more sober and convoluted.

3.4.2 Rare Resources

As this type of rental problems are rare as it might not be found similar in other nations or
everywhere. It’s possible that there are many other nations who were facing the problem of
shortage of homes and people are compelled to live in dirty slums, but as compared to the
rental crisis in Australia the exact blend of difficulties can’t be seen in other nations. The
rental prices are increasing drastically affecting their day to day life and also the economy of
nation.

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 Australian Rental Crisis

3.4.3 Inimitable Resources

Consider you have a food technique it can either be of driving, fighting, but only you are the
one who can do these things in a perfect way. In a similar way the suggestions of building
more houses, constructing more buildings, take help from non-government organizations
(NGO’s) can work in other places or region but in Australia the situation is completely
different.

3.4.4 Organized Resources

It’s like the parts of a vehicle which are in front of you and are ready to assemble. The situation
of Australia is also well organized which can help others to understand the reasons and why
it's happening and what are the steps that can be taken to prevent the rental crisis.

3.5 Competitor Analysis

Consider you are playing a video game and guessing the next move that can be taken by the
opponent. Similarly in the rental crisis we are looking at different nations, organizations which
are involved to support are doing and how their decisions, actions and policies can affect the
crisis. By analysing the number of available houses and the number of people who are
interested to rent them, we can conclude that there are more chances to perform and
understand things and make yourself unique among all.

3.6 Core Competency Analysis

Imagine the core competencies as the unique techniques and strategies that can make a person
good in their work. Considering the group of people and individuals working to find the
solutions for the rental crisis in Australia could be the professionals in making rules and
regulations along with the laws and helping the communities to join hands and come together.
By identifying and understanding the qualities in which these experts are good we should
ensure that they are using their excellence to tackle the rental crisis.

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 Australian Rental Crisis

3.7 PESTLE Analysis

3.7.1 Political

It seems like a constitutional record book and amendments that every government have either
it can be the government of Australia or government of any other country follow. Can we say
that these records and taxes we pay are making it easy for development of new houses?

3.7.2 Economic

When we talk about the economic factors we can assume the amount of money the citizens
of Australia have and can they afford a rented house with those income or savings they
have.

3.7.3 Social

By the term social we can imagine how things are going in Australia where the citizens are
willing to live and the requirement of houses are more.

3.7.4 Technological

As the technologies are changing day by day the rental crisis in Australia are getting worse
day by day. As the rental crisis are on its peak if we see the data of past few years specially
after the pandemic.

3.7.5 Legal

They are the rules and regulations that every citizen of Australia has to follow either they are
landowners or tenants.

3.7.6 Environmental

Imagine the things which are changing like a climate or air quality level day by day in
Australia might cause hazardous affects. As increase global warming can be a major factor
in some countries affecting the climate and causing green house effect similarly in Australia
increase in house rents are causing problems and affecting the tenants of Australia.

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 4.fCUSTOMER PERSONA

S.J. Enterprises Pvt. Ltd.

J4-122 DDA Janta Flats, Kalkaji, CO-29220
sjenterprises08439@email.com | 222 598 78934

Sahil Jaswal
Software Developer
“As an aspiring software developer, I am driven to create innovative solutions
that are not only meet but also exceed.”

ABOUT
Sahil Jaswal is a software developer who makes money online by creating helpful web pages for IT
companies and through his social media. He has twenty assistants that get paid weekly for their
service. The rest of the business sales go directly to his savings.

LIKES PREFERENCES
Money-saving apps Online Offline money-saving app
transactions User-friendly
websites An app that is connected to a bank account
Low-cost apps

GOALS
CHALLENGES
To stay organized
Entrepreneurship Not very tech-
savvy Lack of
To manage capital and investments fundings
Issues with financial transactions

EXPERIENCE
Python Programming in Azure PROJECTS
Skynet Pvt. Ltd.
• My Blog
08/2022 – 09/2022 • Color Fun
• GUI based login panel
NATURE OF WORK
CGI and GUI Programming • Snake Game
Worked on Socket Programming • BMI Calculator
Have a good experience in python • Stopwatch
 Australian Rental Crisis

5. GANTT CHART

Planning

Progress

Analysis

Support

Date

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 Australian Rental Crisis

6. REFRENCES

1. AHURI SUBMISSION, 2023. Senate Inquiry into the worsening rental. Senate Inquiry into the worsening
rental, Issue AHURI, p. 78.

2. Anon., 2023. Internal Migration and Rental Crisis after the Pandemic: A Rental Gradient Analysis for
Melbourne, Australia (Preprint). Internal Migration and Rental Crisis after the Pandemic: A Rental
Gradient Analysis for Melbourne, Australia (Preprint), Issue SSRN, p. 27.

3. Dollas Rogers and Emma R. Power, 2021. The global pandemic is accelerating housing crises. The
global pandemic is accelerating housing crises, 21(Taylor&FrancisOnline), p. 6.

4. Don Amila Sajeevan Samarasinghe, 2020. The housing crisis in Australia and New Zealand: A
comparative analysis through policy lenses. The housing crisis in Australia and New Zealand: A
comparative analysis through policy lenses, 10(IJCSCM), p. 12.

5. Duncan A Rouch, August, 2020. Fixing Australia's housing crisis: how to do better. Fixing Australia's
housing crisis: how to do better, Issue ResearchGate, p. 135.

6. Emma Baker et al., 2022. An Australian rental housing conditions research infrastructure. An
Australian rental housing conditions research infrastructure, Issue Nature, p. 5.

7. Lyrian Daniel et al., 2023. Australian rental housing standards: institutional shifts to reprioritize the
housing-health nexus. Australian rental housing standards: institutional shifts to reprioritize the
housing-health nexus, 10(1), p. 10.

8. Nicole Gurran and Peter Phibbs, 2016. 'Boulevard of Broken Dreams': Planning, Housing Supply and
Affordability in Urban Australia. 'Boulevard of Broken Dreams': Planning, Housing Supply and
Affordability in Urban Australia, 42(JSTOR), p. 17.

9. Sophia Maalsen et al., 2020. Rent and crisis: Old housing problems require a new state of exception in
Australia. Rent and crisis: Old housing problems require a new state of exception in Australia,
10(ResearchGate), p. 6.

10. Trent Saunders and Peter Tulip, 2019. A Model of the Australian Housing Market. A Model of the
Australian Housing Market, Issue ISSN, p. 41.

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