Youth Renting

Commerce assignment

For many young people moving out of home, renting a property to live in is the only viable option that they can afford. The increase in the cost of home ownership has lead to young people utilising the private rental market as a medium to long-term form of housing after leaving home. An example of this is the Melbourne Eastern Metropolitan Region, where twenty-two percent of low-income renters are young people. However, young people face many issues when renting, the most prominent being income, lack of rental history, affordability and discrimination. These key issues can all be solved, whether this be through advice, compensation or legal action. The sheer amount of young tenants illustrates youth renting’s importance in independent living.

These issues in renting affect independent living for young people as high rent prices has forced many to move back home or staying at home until older ages, which has created the present day “Boomerang generation”. This “Boomerang Generation” also impacts on the morale of the young people moving out and decreases the chance that they will try to move out again, which can cause tensions between parents and children. The added cost of their children living at home for longer can also cause parents financial troubles, especially if they are retired.

As shown through the surveys and focus groups done by the Private Rental and Young People report by the Victorian Government, the key issues facing young renters were discrimination and affordability among other issues.

The report found that discrimination was the most frequently identified barrier that young people experienced when trying to use the private rental market. Young people reported that real estate agents and landlords discriminate on the basis of age and stereotypes associated with young people, particularly those who receive social security payments. First time renters also struggle to be accepted by landlords because of their lack of rental history. This means that other, older applicants are often chosen over young people as they have a more credible rental history.

Another major issue is cost. A 2011 Melbourne House price Anglicare article found that less than 1% of properties in the greater Melbourne area were affordable for low income singles and families, which is predominately made up of young people moving out of home. The Victorian government report also found that the high costs of many rental properties meant that properties in young people’s budgets were often inappropriate. These properties were also often not located near education or employment options or support services. Income levels also impacted on young people’s ability to access housing that meets basic needs such as heating. Affordability was also a key barrier as many young people do not have the adequate or stable income needed to rent a suitable house.