The rental crisis in Australia is hitting a vulnerable demographic: baby boomers. A former Reserve Bank board member predicts four rate hikes, which could impact landlords and renters alike. The older generation, who bought houses during the 1980s and 1990s, are now facing financial strain. Many are divorced or couldn't enter the housing market, making them eligible for rent assistance. However, they often struggle with age discrimination in share houses, as younger people prefer to live with peers. The Age Pension, designed for those over 67, is insufficient for renters, and many older Australians are in rental stress. The Federal Government spent $6.4 billion on Commonwealth rent assistance in 2024-25, but 43% of low-income households still experienced rental stress. Landlords, especially investors, are feeling the pressure. With rising interest rates and a tight rental market, landlords might be forced to sell, reducing available options for renters. This situation highlights the need for policy interventions to support both older renters and landlords in a rapidly changing housing landscape.
