‘Under pressure’: Alarming trend displacing young people from Sydney

Young renters are criticising Sydney’s rental system, saying it is not designed to support long-term tenants who are now giving up hope of becoming homeowners – and leaving Sydney altogether.

Renters in Sydney who do not have intergenerational wealth feel that exiting the rental market is becoming a pipe dream as rent costs tenants an ever-increasing percentage of household income.

Yatha Jain lives in a shared apartment in Newtown, where she and her roommates already pay a whopping $1,250 in rent per week.

Tenants Eisha Farrukh (left) and Yatha Jain recently had to deal with a rent increase. Photo: Justin Lloyd.

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You have just been hit by a price increase.

“This is additional pressure, and I was already under pressure given the cost of living,” she said.

“The trend I’m seeing is that people in our age group are moving away or simply can’t afford anything anymore.”

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First-time buyers are reportedly increasingly relying on their parents’ bank or other family heirlooms for the down payment on their home.

Current figures show that although rents and supply have declined, prices are still extremely high.

Ms Jain said that despite the security of full-time employment, Sydney’s rental system was particularly tough for people who did not rely on family support.

“The current system is not designed for someone like me to be able to rent an apartment long-term and at the same time have the financial means to buy a property,” she said.

“I am a migrant with a migrant background, and like many other people with my background, I do not have access to intergenerational wealth.

“It’s really disappointing that it’s forcing me, along with many other young people, to leave Sydney where we could perhaps be looking for property or a more stable rental market,” she added.

Yatha Jain (right) with one of her flatmates, Eisha Farrukh. Ms Jain says more reforms are needed that give tenants more power. Image: Justin Lloyd.

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Ms. Jain and her roommates are currently testing the market to negotiate their price increase.

“Currently, the responsibility for negotiating these increases lies with the tenant as there are no limits or caps,” she said.

“We need a reform that gives tenants more power and limits the percentage rent increases that landlords can enforce.”

There should be no evictions in NSW, which Ms Jain said was a positive step forward.

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Rents fall the most since the outbreak of the Covid pandemic

As chair of Prosper Project Australia, a not-for-profit organisation supporting disadvantaged children and families, Ms Jain was concerned not only about the rental market but also about other people in more difficult circumstances.

“We need more affordable housing and the construction of more social housing so that people do not have to wait so long for safe accommodation.

“There is a link with other issues like domestic violence… older women are the group of women who suffer the most from homelessness. What are we doing to help people and make sure they have shelter?”

Sarah Elkordi, “The Rent Fairy”, helps tenants find a lease in Sydney’s difficult rental market.
She said before Covid, rents went up by $10 or $20. In the last two years, increases have been more like $50, $100 or more.

“It is now unrealistic for a single person to choose a one-room apartment if they only have one income – this limits their options.

“Sometimes it’s a difficult conversation (with customers), especially if they have children and they go to school, sports or daycare. We have to look at what they can afford.

Sarah Elkordi, also known as the rent fairy.

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“Competition… single parents face dual-income households, working people face welfare recipients… people of different economic status now compete for the same prices and possessions.

She said what was happening in the rental market was “heartbreaking.”

“I try to give back to those who need help, but I’m limited in that because I have no control over whether landlords take care of their properties and who they put in their properties.”

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