23 April 2015 (embargoed until Friday 24 April) Media release Rents in country Victoria outpacing Melbourne, contributing to homelessness Low income earners in regional areas are at increasing risk of homelessness due to rising rents, says the peak body for homelessness, with rents in some areas soaring 30-40% in just five years. Rents for two- and three-bedroom houses in regional Victoria are increasing at a faster rate than in metro Melbourne, and well beyond inflation, according to analysis of recent DHS data by the Council to Homeless Persons. The median rent for a three-bedroom house in regional Victoria increased 17% over the last five years, compared to a 13% rise across Melbourne over the same period. The Council to Homeless Persons (CHP) says a housing affordability crisis in regional Victoria is contributing to rising homelessness, with agencies seeing an increasing number of clients who are struggling to keep up with the cost of housing. On Friday, CHP will hold a ‘Regional and Rural Homelessness’ event at La Trobe University Bendigo to discuss homelessness in regional Victoria. “Although it is still cheaper to rent outside of Melbourne, median rents are going up at a startling rate and people on low incomes are really feeling the squeeze,” said Jenny Smith, CEO, Council to Homeless Persons. “A family on a low income looking for a cheap place to rent may find that many regional areas are outof-reach, or that they end up paying more than they can afford, with little left over for essentials such as bills and groceries.” “Working wages are generally lower in the regional areas, and Centrelink incomes have not kept pace with inflation. As a result people are struggling to keep up with the cost of housing, and finding themselves at risk of homelessness,” said Ms Smith. CHP says inflation alone doesn’t explain soaring regional rents, with increasing competition for rentals from seasonal workers, ‘treechangers’ and higher-income urban commuters also contributing. The peak body says that homelessness agencies are also reporting an increase in the number of rooming houses in regional areas, where previously there have been none. Median rents for a 3 bedroom house in LGAs across regional Victoria (DHS Rent reports) Local Government Area 2009 median rent 2014 median rent Difference % Increase over 5 years Ararat $170 $240 $70 41% Strathbogie $205 $280 $75 37% Hindmarsh $140 $188 $48 34% Loddon $150 $200 $50 33% Golden Plains $250 $330 $80 32% Mount Alexander $230 $300 $70 30% Northern Grampians $163 $210 $47 29% Gannawarra $150 $190 $40 27% Hepburn $240 $300 $60 25% Macedon Ranges $280 $350 $70 25% 1 Murrindindi Swan Hill Colac-Otway South Gippsland Central Goldfields Greater Bendigo Mansfield Mildura Surf Coast Latrobe Wodonga Alpine Greater Geelong Wangaratta Campaspe Horsham Southern Grampians Baw Baw Buloke Greater Shepparton Mitchell Moorabool Benalla East Gippsland Ballarat Corangamite Moira Wellington Yarriambiack $240 $200 $220 $203 $180 $240 $240 $215 $330 $200 $250 $220 $270 $225 $220 $220 $220 $240 $150 $240 $240 $250 $207 $230 $240 $200 $220 $220 $140 $300 $245 $270 $250 $220 $290 $290 $260 $395 $240 $300 $265 $320 $265 $260 $260 $260 $280 $175 $280 $280 $293 $243 $270 $275 $230 $250 $250 $160 $60 $45 $50 $47 $40 $50 $50 $45 $65 $40 $50 $45 $50 $40 $40 $40 $40 $40 $25 $40 $40 $43 $36 $40 $35 $30 $30 $30 $20 25% 23% 23% 23% 22% 21% 21% 21% 20% 20% 20% 20% 19% 18% 18% 18% 18% 17% 17% 17% 17% 17% 17% 17% 15% 15% 14% 14% 14% Media enquiries: Lanie Harris, Council to Homeless Persons, 0418 552 377 Regional and Rural Homelessness forum Date: Friday 24 April, 9.30am Time: 9.30am Location: The Ironbark Centre, La Trobe University Bendigo, Edwards Rd, Flora Hill, Victoria Interviews available by request:  Jenny Smith, CEO, Council to Homeless Persons  The Hon Lisa Chesters, Member for Bendigo  Ken Marchingo, CEO, Haven Home Safe  Alana Hulme Chambers, La Trobe University 2