Forced to rent for life: Limited affordable options in south-west

The Intergenerational Report found a higher number of people are heading into retirement without owning a home.

It's concerning for south-west residents, with high demand, an increase in short-term rentals and a surge in landlords exiting the market leading to increased prices in recent years.

The average price of rentals in the city has increased by 23.4 per cent, according to a spokesman from Renovation Capital.

The company conducted research into the most and least affordable places to rent in Australia.

"The rental value change since March 2020 in Warrnambool is 23.4 per cent, which is higher than several areas, emphasising a growing appeal or limited rental availability," the spokesman said.

"Investors and potential homeowners looking into south-west Victoria should consider the region's growth potential and the burgeoning demand for rentals."

Everybody's Home spokeswoman Maiy Azize said the report findings were alarming.

"Housing is a huge driver of inequality and insecurity. Whether a person has secure housing will shape the quality of their lives. And when hundreds of thousands of people miss out, everyone pays the price. The cost of inaction is huge," Ms Azize said.

"Australia's entire social security system assumes that people will have paid off a mortgage by the time they retire. Our aged care system relies on people's homes for funding.

"But more and more people will be renting for life. They are heading for an insecure retirement, and Australia is heading for more inequality and insecurity."

Everybody's Home's financial stress map reveals 42.9 per cent of renters in the Wannon electorate are experiencing rental stress, while 34.3 per cent are experiencing mortgage stress.

On Friday, the lowest rental in Warrnambool was for a one-bedroom bed-sit style unit, which was listed for $220 a week.

The cheapest two-bedroom unit was $340 a week, while the cheapest three-bedroom option in the city was $360 a week.

Member for Polwarth Richard Riordan said there was simply not enough housing available in Victoria.

"To be very clear - on the record, as of 30 March this year 37,079 families were on the urgent priority list," Mr Riordan said.

"That is a real worry. It is 37,079 families that are sleeping in cars, sleeping in motels, sleeping in caravans, couch surfing or sleeping under lampposts in their cars to be safe.

"There are a further 30,906 families - that is an increase just in the last year of some 3000 families - who are living in inadequate housing."

The comments come after it was revealed in July the state government was considering scrapping the first home owner grant.

Uniting Victoria and Tasmania homelessness senior manager Adam Liversage said young people were already struggling to save enough money to purchase a home.

He said it would be disappointing if the "great Aussie dream" of owning a house became out of reach for some.

"Historically Australia has prided itself of people being able to realise the dream of buying their own home," he said.

"It's one of the greatest things about this country - that everyone can purchase their own home."

Mr Liversage said if the grant was scrapped, it would add to the south-west's homelessness crisis.

"We're seeing a massive increase in people accessing our services - around 40 per cent are new presentations as well."

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