What broke the rental market (and can it be fixed)? | ABC News In-depth

The script discusses the rental crisis that has escalated worldwide, with people spending an increasing proportion of their income on rent. It highlights the spike in rental costs, outpacing inflation and wages, making it harder to find affordable housing. The script mentions specific percentage increases in rent in cities like New York City, London, and Singapore. It also touches on the rental affordability rule, which suggests spending less than 30% of income on rent, a threshold exceeded by many households even before the pandemic. The exploration of the reasons behind the spike and the search for solutions to the broken rental market are also mentioned.

This paragraph delves into the dynamics of the rental market, emphasizing the role of supply and demand. It notes the decrease in rental listings and the plummeting vacancy rates, contributing to the rental crisis. The script discusses the increase in homelessness and the growing waitlist for social housing in Australia. It also touches on the impact of the pandemic, which forced people to reassess their living situations, leading to an increase in demand for rentals and the creation of new households. The paragraph suggests that the rental crisis is a result of economic factors and the uncertainty surrounding interest rates.

The script describes the rental experiences in New York City and London, highlighting the challenges faced by renters in these cities. In New York, the search for an affordable apartment leads to options like a tiny studio in Greenwich Village with shared facilities or a co-living space in Williamsburg, which is over budget. In London, the increase in renters and the competition for properties, especially for those on lower incomes, is discussed. The paragraph also mentions the budget constraints and the difficulty of finding a decent place within the median household income.

The paragraph contrasts the rental experiences in London and Tokyo. In London, the search for an affordable place leads to a refurbished apartment in Shepherd's Bush and a larger three-bedroom property in East London, which comes with the risk of redevelopment. In Tokyo, the rental market is characterized by small apartments and a high demand for housing. The script explores the unique features of Tokyo apartments, such as the lack of ovens and the presence of high-end baths, and the challenges of finding affordable housing in both cities.

The focus shifts to Sydney, Australia's most expensive city for renters. The script discusses the challenges of finding affordable housing in Sydney's inner suburbs and the high demand for modern properties. It also introduces the build-to-rent sector as a potential solution to housing affordability, highlighting its benefits such as long-term leases and professional management. The paragraph explores the build-to-rent properties in Sydney and their potential impact on the rental market.

The script explores potential solutions to the rental crisis, including rent regulation and the provision of social and affordable housing. It discusses rent control policies in New York and their impact on the availability and cost of regulated units. The paragraph also examines the role of government in providing social housing and the need for more public or community housing to ease rental pressures. The script suggests that a combination of different ideas and programs will be necessary to correct the market.

The final paragraph summarizes the global perspectives on rental affordability and the various solutions explored in the script. It emphasizes the complexity of the issue and the need for a multifaceted approach to address it. The script highlights the importance of continued conversation and action on tenant rights and the provision of social and affordable housing. It concludes by acknowledging the difficulty of the task but the necessity of working hard to repair the broken rental market.