RBA boss' blunt suggestion for struggling renters
Reserve Bank of Australia governor Phillip Lowe is warning Aussies that the nationwide rental crisis will worsen before it gets better.
Despite high interest rates and a good chance of another increase as inflation continues to skyrocket, the housing market is showing signs of recovery.
However, renters are faced with a short supply and the possibility of the biggest rent hike in decades.
Lowe urged people struggling with their payments to consider getting a flatmate or housemate or moving back home.
He also suggested people rent out their spare rooms to help with the crisis.
"The way that this ends up fixing itself, unfortunately, is through higher housing prices and higher rents," he said.
"Because as rents go up people decide not to move out of home, or you don't have that home office, you get a flatmate.
"The increase in supply can't happen immediately, but higher prices do lead people to economise on housing."
Lowe explained that housing supply was the biggest challenge on the market and that rents were expected to increase by 10 per cent.
That would be the biggest price hike since the 1980s.
However, homeowners will be pleased to hear that the market is showing signs of recovery, with a 1.2 per cent growth recorded in May 2023.
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