On the edge: the financial situation of older private renters

On the Edge: the Financial Situationof Older Renters in the Private RentalMarket in SydneyAlan Morris

Abstract

In this study, based mainly on 17 in-depth interviews, I explore the financialimplications of being an older private renter in Sydney. I illustrate that thereare three key factors which determine their degree of financial stress - theactual rent being paid; the degree of support from family members andwhether the older renter is living in a single or couple household. It is shownthat several of the older renters interviewed found it hard to maintain theirphysical and mental health. The purchasing of basic items such as nutritiousfood and clothes was difficult. Having to devote such a substantial part oftheir income to cover the rent and never knowing when there would beanother rent increase had a serious impact on the psychological health ofsome interviewees. The lack of finances encouraged isolation as intervieweesfound it financially difficult to participate in social activities.

Keywords: Renters, older people, financial stress

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On the Edge: 'he Financial Situation of Older Renters in the Private Rental Market in Sydney

IntroductionOlder Australians (65 plus) have one of the world's highest homeownership rates. In2002-2003, about 80 percent of the 2.7 million older Australians owned their homeoutright, another three percent were still paying off their mortgage and about 13 percentwere renters (ABS 2005). Of those who were renting, about 44 percent were rentingfrom private landlords, 45 percent were in public housing and most of the remainder'rented from community and church groups, housing cooperatives or caravan parks'(ABS 2005). Older couples were more likely to own their homes than single olderpeople. In 1999, 91 percent of older couple households were homeowners (88 percentoutright); in contrast, 76 percent of single older person households were homeowners(73 percent outright) (ABS 2002). Single older persons were more likely to be renters- 19 percent of single older people were renting compared to seven percent of couples(ABS 2002).

In contemporary Australia an individual's housing tenure in their retirement years isoften a crucial determinant of their quality of life (Council on the Ageing 1997; Jones etal. 2004; Saunders 2005). For those older Australians who own their own home outright,the burden of paying a mortgage or rent is obviously no longer a concern. For thoseolder Australians who are resident in public housing, they have the security and comfortof knowing that their rent will be maintained at 25 percent of their income. In starkcontrast, the lack of any rent control means that older Australians who are dependent onthe private rental market for their accommodation, are constantly subject to the vagariesof the market. In this paper, I focus on this group, who are perhaps the most vulnerablegrouping in contemporary Australia.

It is quite possible for older private renters, especially in the metropolitan areas, to findthemselves in a situation where the bulk of their aged pension is used for paying therent. Despite their greater accommodation costs, older private renters' aged pension isthe same as that received by homeowners and public housing tenants. The only extraincome they are entitled to is Commonwealth Rent Assistance, which all private renterswho are dependent on income support and whose rent is above $89.60 (March 2006figure) a week are entitled to claim.' As will be illustrated, although Commonwealth RentAssistance played a vital role in the reduction of their rent burden, it rarely resolves thefinancial stress of older private renters in Sydney.

Despite their dire circumstances there has been little research on older private rentersand private renters in general. Beer (1999: 255) concluded that research on privaterenters has often been considered the "lost child" of Australian housing studies'.Referring to policy research on older private renters, Jones et al (2004: i) have argued'There has been a tendency for this group to be neglected...relative to other groups ofolder people'. Research has been conducted on pathways into and out of homelessnessand affordable housing options for older people (ACSA 2005; Council on the Ageing1997; Deans, 2004; Faulkner, et al 2002; Judd et al 2004; Kendig & Gardner 1997;McNelis & Herbert 2005; Morris, Judd & Kavanagh 2005). The Australian Housing andUrban Research Institute has initiated research that focuses on the policy implications ofthe increasing number of older private renters (Jones et al. 2004). In 2003, the Housingfor the Aged Action Group (HAAG) brought out a report based on eight in-depthinterviews with older private renters in Victoria which describes their everyday situation

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(Ahern 2003). This appears to be the only Australian qualitative study that focuses on thedaily difficulties older private renters face.

What I set out to do in this study is to give older private renters in Sydney a voice,focusing on how their tenure status determines their financial situation and everyday life.As Saunders (2005: 11) argues, 'The poverty statistics must...be accompanied by accountsthat draw directly on the experiences of the poor...' What I illustrate is that older rentersin Sydney are certainly among the most vulnerable groupings in the nation and thatCommonwealth Rent Assistance, the only policy directed at alleviating their financialstress, is, in many cases, not working. I draw on data from 17 in-depth interviews witholder renters from all parts of Sydney and explore their financial stress and how it shapestheir everyday life. Of the 17 interviewees, 11 were fully fledged private renters (they hadno subsidy), another four had their rent subsidised by the church or tenancy groups,one had their rent subsidised by a friend and, in the case of the only couple interviewed,their rent was subsidised by their children. Interviewees were paid $30 for their time andwere recruited mainly through advertising using seniors organisations. Due to the smallnumber and the difficulties in recruiting participants, there was no attempt to sampleolder renters in terms of location and the different rental markets within Sydney.

In the first part of the paper I set out some of the particularities of older private renters.I then examine what contributes to their varying degrees of financial stress. The thirdsection of the paper explores some of the implications of their financial stress. In theconclusion, I note some of the policy implications of the study.

The particularities of older private rentersA legitimate question is why focus on older private renters? Although there are certainlyfeatures that they share with other private renters, I want to argue that there are threeaspects which are more likely to pertain to older private renters and are worth noting.Firstly, their working days are invariably permanently ended and they are foreverdependent primarily on income support for their income: secondly, the link betweenan older person's housing situation and their health is more likely to be significant and,finally, moving house and neighbourhood for this grouping is often very difficult. Theseare discussed in turn.

For almost all older private renters their main source of income is the aged pension andCommonwealth Rent Assistance and the possibilities of returning to the workforce arevirtually nil. In 1999, the ABS concluded that 'the average weekly income of older personhouseholds was lower than for any other life-cycle group (reflecting the likelihoodthat household members had retired)' (ABS 2002). In 2003, only about nine percentof males and two percent of females aged 65 and over were in the labour force (ABS2004). Although there are younger Australians who are jobless for extended periods,most notably those with a disability, in many cases their jobless status and resultant lowincome, is a transitory situation (Saunders &c Bradbury 2006: 357).

For most older Australians their lack of employment and low income is offset by the factthat their housing costs are minimal. In 1999

average weekly housing costs for this group were...lower than for otherlife-cycle groups ($44 for couple households and $40 for lone-person

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On the Edge: the Financial Situation of Older Renters in the Private Rental Market in Sydney

households). Even for those older person households with a mortgage,average weekly housing costs were relatively low ($91 for older couplehouseholds and $62 for older lone-person households) (ABS 2002).

However, for those older Australians who are private renters, their limited income andhigh accommodation costs means that a considerable portion of their income is devotedto accommodation costs. In 1999, 'the 7% of older lone-person households which wererenting from private landlords spent a higher proportion of their income (49%) onhousing costs than any other life-cycle group' (ABS 2002).

The impact of an older person's accommodation on their health is well-established(Council on the Ageing 1997; Evans et al. 2002; Faulkner et al. 2002). A Council onthe Ageing submission to the Australian Senate concluded that it is accepted thatolder people in private rented accommodation arc the most disadvantaged amongstolder people' and that the 'housing circumstances of a person in older age haveimmense effects on their quality of life and well-being, health status and life expectancy'(Council on the Ageing 1997). Noteworthy, is that only one of my interviewees wasliving in a boarding house. All of the other interviewees were not prepared to shareaccommodation or live in a boarding house. There was a lot of emphasis on trying tolive in decent and appropriate accommodation despite their limited funds. This desireappeared to be especially strong for the female interviewees.

Moving house for older people is usually difficult emotionally and physically. For olderrenters it is even more so as often they do not have the financial capacity to move.As one 70 year-old interviewee said (she was paying $220 a week at the time of theinterview) when discussing the insecurity of renting, 'You can put up with it whenyou're young. You can go out or just crash and away you go again' (Carol).^ Familiaritywith the neighbourhood is often terribly important for older people whose income isminimal (Faulkner et al. 2002; Reed et al. 1998). A great deal of comfort is obtainedfrom having a good knowledge of the local area and having a relationship with thepharmacist, doctor, fruitier, neighbours, etc. Many of the interviewees said that a majorconcern about moving was losing this local knowledge and neighbourhood connections.Matthew (he was 67 at the time of the interview and his rent was $220 a week),reflecting on possibly moving to the South Coast to be with his daughter if his rentbecame untenable, had the following observation about the importance of locality:

And I may even, you know, as a last resort, go and live down in thatpart of the world [South Coast], but I'm reluctant to do that becauseother infrastructure such as medical and I belong to a local churchand it's been a great solace. I work there voluntarily, which is a greatthing because it keeps my mind [active] and...Yes, and also a littlebit of self-esteem. They've been good enough to let me look afterthe...property. So that was the sort of thing that I was doing when Ihad a professional career, so that's good. And I also have a bit to dowith [the local] Rugby Union [club]. I go down on Saturday and do theScoreboard for them...And my CP bulk bills and he's a fantastic guy, andwe can talk about all sorts of things. And it's important that I have that.And North Shore Hospital...It's a great hospital (Matthew).


Another 70 year-old interviewee who is visually disabled, said she could not envisagemoving despite the fact that her rent was $240 a week and she was struggling to sustainherself: 'Well I know where everything is and when I go up the street I know where to goand how to get there and I sort of know the area reasonably well' (Anne).

The financial stress of older private renters in Sydney

The interviews indicated that the level of financial stress of older renters in Sydneyvaried. Some were s t ru^ing to purchase basic necessities, while others felt that theywere coping. There were three key aspects that determined their degree of financialstress-the rent they were paying, the extent of assistance they had in cash or kind fromfamily and whether they were living by themselves or as a couple.

Rents and financial stress

For all of the interviewees, their weekly rent was their primary expense and the keydeterminant of their financial situation and, often related to this, their quality of life.Many of the interviewees were under enormous financial and emotional stress becauseof the rent they were paying. Those interviewees whose rent was subsidised generallyappeared to be content with their situation and were coping well.

In Sydney, at the time of the interviews (the interviews were conducted in mid 2005),the median rent varied from area to area. In most Sydney neighbourhoods, however,the median rent for a one-bedroom apartment was at least $200. Thus, of the 114 postalcodes in metropolitan New South Wales for which there was data, the median rent fora one-bedroom apartment was $250 a week (Department of Housing, 2006). In Sydney,in what is labeled the inner ring, the median rent for a one-bedroom apartment was$300 a week and in the middle ring it was $245. In 43 percent of New South Walespostal codes, the median rent for a one-bedroomed apartment was $250 or more (NSWDepartment of Housing 2006). The data suggests that it was/ is very difficult for anolder renter in Sydney to find adequate accommodation for less than $180 a week. Incentral locations it is near impossible. In my small sample, of those interviewees whowere not living in subsidised accommodation, five were paying $200 or more a week,one was paying $170, one was paying $160, two were paying $150 and one was paying$140. One interviewee was paying $110 a week, but he was living in a boarding house.An interviewee who was paying $180 a week in June 2005, was devoting 62 percent oftheir income (aged pension plus Commonwealth Rent Assistance) to paying the rent.

Not surprisingly, those interviewees who had had the good fortune to find adequateaccommodation for under $160 a week were generally coping better than those whowere paying $200 a week or more. What constitutes the poverty line has been subjectto much debate, however, if we use the most universally recognized poverty line (halfof the median income), in June 2004, the poverty line in Australia was $485.20 for afamily with two children (Saunders 2005: 23). Using equivalence scales, the poverty linefor an adult living by themselves would be just under half of $485.20, or approximately$240 a week (Saunders 2005: 19). This is equivalent to the aged pension at the timethis research was conducted. In addition, most older private renters in Sydney werereceiving Commonwealth Rent Assistance of up to $49 a week. Their total income wasthus approximately $290 a week. Those older renters paying $150 a week in rent, had$140 a week for other expenses, whereas those paying $200 a week had $90 a week for

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Other expenses. Many of the interviewees found living on $140 a week after paying therent, very difficult. Those interviewees, who after paying the rent only had $90 a weekto spend, struggled to purchase even the most basic necessities such as clothes. Anyunexpected expense was a major concern.

There is consensus that any household dependent on income support, that is spendingmore than 30 percent of their income on rent, is suffering from housing stress (Harding,Phillips & Kelly 2004). The Council on the Ageing has argued that older peopleshould not be paying more than 25 percent of their income for housing costs and thatpaying a higher proportion could affect their ability to have an adequate standard ofliving (Council on the Ageing 1997). None of the interviewees who were living in anunsubsidised unit (not a boarding house), were paying less than 48 percent of theiroverall income on rent. Even the one interviewee who was living in a boarding house,was spending more than forty percent of his income on rent.

The situation of interviewees was subject to a good deal of contingency. Asmentioned, some had been fortunate and had found reasonably priced and adequateaccommodation and they were usually (certainly not always) more positive about theirfinancial situation and everyday life. The ones who were in the most serious financialstress were those paying $180 or more a week who had no other source of income.Carol, whose rent was $220 a week, had the following comment: 'Well I honestly, wellyou know the way the price of things and that are today, I really don't know how thegovernment can expect, you know, a person to live on it' [the aged-pension]. Lynne, whowas paying $150 a week, was also struggling:

Things have, lately things have, they're squeezing us. They're absolutelysqueezing us. I have never felt this squeeze like this. So desperate. Yes,there have been times where, a couple of weeks ago I had eggs for threedays and I bought a cup of soups. Yes. There's been times (Lynne).

Rod, whose rent was $160 a week, had a different assessment of his situation. Heappeared to be coping, but his comment reflects the fragility of his situation. A rentincrease of $10 a week was viewed with trepidation:

So I don't know if he ever put it up, even $10, well, up to $10 thatwould be, $10 a week I'd probably just have to watch a little bit. But Ithink I'd manage. But at $160 I'm quite happy and I'm pretty right andI'm pretty stable.

Clearly individuals differed in their needs and also their expenses. Lynne had had a majorunexpected dental bill a few months prior to the interview and was still recovering fromthis expense. She also had the desire to go to the theatre and the cinema and meet herfriends for coffee. Bill's needs and desires appeared to be more modest.

The ability to find reasonably priced accommodation was also partially dependent onan individual's residential history. Interviewees tended to stay in the area they had beenliving in for an extended period of time. Over time many of these neighbourhoods hadbecome sought after and relatively expensive. As mentioned, the thought of lookingfor accommodation in another area was often too daunting. Barbara had the followingcomment:


That's another thing. I don't like the idea of people, and I've done itmyself by coming here, moving from their usual place to a new placewhen they are old...I wouldn't like to go into somewhere new now thatI don't know. Because, you know, I've made a few friends. I've sort ofmade a little routine. And then I'd have to start all over again, whichgets more and more difficult.

Besides being constrained by a desire for familiarity, interviewees found themselvesstuck in unaffordable accommodation because they could not afford to move or findcheaper accommodation in the area. They generally did not have the capacity or desireto look in many neighbourhoods. Matthew, who was paying $220 a week and findingmeeting everyday expenses an enormous strain, was desperately keen to find cheaperaccommodation but had not been able to:

Well you see the trouble is, if you find something cheaper, it willprobably be $10, $15 a week cheaper, but before you can go from here,you've got to come up with six weeks rent. And then you've also got tomove. It's only three years ago that I moved from down where I was.Just down the road to here, and it cost me $500 just to pass one blockand up here.

So you don't see yourself moving?

Well I couldn't afford it. I just couldn't come up with say for example$1,500 for the rent or $1,600 or whatever it might be, and then on topof that wherever you want to go. You'd probably be looking at $600,$700, $800, $900 for, you'd be looking at around $3,000. And now,that's an impossibility for me.

Renting privately and living by oneself or as a couple and financial stress

Compared to homeowners, older private renters were far more likely to be living bythemselves. In 1994, just under half of all private renters (sixty and over), were livingby themselves, compared to just over a quarter of all homeowners who were sixty andover (ABS 1996). The interviews suggested that for many older renters their singlestatus had contributed directly to them becoming tenants. Divorce or death of a spousewere common reasons for a change in tenure status from homeowner to renter. Carolrecounts briefly how she ended up being an older private renter:

Yes. And then of course my husband went up the social ladder abit. He went off with someone younger, and so I was left with nosuper, nothing. So consequently, and two kids, and then you knowgrandchildren. So yes, I sort of fell through the cracks.

Existing data indicates that in relation to poverty, being single or in a couple generallyplays a significant role for older people (Saunders 2005). Thus in 1998/'99, based onthe commonly used OECD equivalence scale, only 6.6 percent of older couples werein 'income poverty' compared to 312 percent of older people living by themselves(Saunders & Bradbury 2006: 356). In the first half of 2005 (the time when this researchwas done), the income for an older couple dependent on the aged pension andCommonwealth Rent Assistance would have been $445 a week. If they were paying $200a week for their accommodation, this would be equivalent to 45 percent of their income.

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A hefty proportion, but they would have $245 left for electricity, food, telephone andother basic essentials.

In contrast, an older person living by themselves dependent on the age pension andCommonwealth Rent Assistance, is invariably in a far worse position. At the time ofthe research they would have had an income of $289 a week. If they were paying $200a week for their accommodation, (a couple and a person living by themselves wouldgenerally be paying similar rents) this would be equivalent to 69 percent of their incomeand after paying the rent, they would have only $89 left for the week in contrast to $245for a couple. It is likely that their telephone and electricity bills would be similar to thatof a couple. Food and toiletries would probably be the only area where there would be asubstantial difference in expenditure.

Financial stress and family support

Those participants who were receiving support of various sorts from their family, werealso in a better situation. This support, which took a variety of forms (gifts, paying formajor items, regular meal invitations, fixing appliances, etc), alleviated a good deal offinancial stress and related anxiety. A good example is Helen, who was paying $ 170 aweek for her one-bedroomed apartment. She received substantial support from her sisterand two daughters:

Ah yes, I've got my sister...Well I go to her place every Saturday andSunday. We spend the weekend. It's quite good...My clothes...I know mysisters, always buy me outfits or something. My daughters always buyshoes and stuff for presents. So I'm lucky there. But if you have to dothat, if you haven't got anyone, you wouldn't be able to do it.

Helen's nephew is a keen fisherman and supplied her with fresh fish. Her daughters hadalso bought her a computer which had become a central part of her life. Helen was oneof the four interviewees who was able to run a car.

Sam had managed to find subsidised accommodation (his apartment was owned by achurch group) and he was only paying $110 a week for a one-bedroom unit. He was veryclose to his daughter. He was able to run a car, his daughter had recently paid for a majorrepair, and he appeared to be comfortable:

You always want that little bit extra, but I manage reasonably well. As Isaid I'm grateful. I've got a wonderful daughter, and if I need anything,or if I'm in strife, she's there...And I'm fortunate enough in the fact thatthere's ways that I can pay her back without it costing me money. Likeshe's got four boys and I babysit. And if they go away I look after theirhouse...And I go over there at least twice a week and I cook. That's theway it works.

His comment illustrates the reciprocal nature of their relationship. He is able tocontribute to his daughter's well-being and receive assistance from her, without losing hisself-respect.


The implications of financial stress for older private renters

The financial stress suffered by those older renters who were living in unsubsidised,private rented accommodation, had a number of negative consequences. Intervieweesspoke of their struggle to maintain their health, purchase basic items and their relianceon charity. These are discussed below.

The health implications

A number of interviewees described how their lack of finances made it difficult for themto maintain a healthy lifestyle. This ties in with the finding that homeowners tend to behealthier and live longer than renters (AIHW 2003:164). A number of interviewees saidthat they had less than $50 a week for food and some had only $30 a week. Matthew,who has a heart condition, and whose rent was $220 a week, had the followingcomment:

So I don't eat all the right food because I can't afford to buy all theright things. I have to be very conscious. I'm the best shopper inthe world. I buy according to price and not according to quality orquantity ...Fruit is a luxury. You don't get much opportunity to buyfruit. And you know a lot of vegetables. I certainly couldn't afford fivevegetables and two pieces of fruit every day that you're supposed to eat.

Anne was also not able to afford an adequate supply of fruit and vegetables:

Well, I tend, I like tuna, tinned tuna. I sort of get that. And then there'snoodles and mince and sausages and bread. Perhaps the odd biscuitsif they're on speciaL.I might have fruit maybe once a month or onceevery couple of months. Because you can't. You know you can't affordto go out and pay 80<r or 90<t for an apple. You just can't because...it'snot only your food you've got to buy. It's your toiletries. Your washingup powder and soap and toothpaste and all those things that you haveto buy as well.

The rent an individual was paying was usually the key determinant of their ability to eatproperly. An ability to cook also emerged as important. James, whose rent was $ 150 aweek, appeared to have a well-balanced and adequate diet. He was very proud of hisprowess in the kitchen which certainly contributed to his ability to eat well:

You have to be pretty careful. Fortunately, without being immodest,I'm a pretty capable intelligent person enjoying extremely good health.Have all my life. I can cook and I prefer to cook. I cook the types offood that I like and I do a pretty good job. All the stuff you see here isvery, very good stuff...I prefer to cook meals for myself rather than goand buy them.

For some of the interviewees a more significant health risk than not being able to afforda balanced diet, was the intense stress their financial situation evoked. Constant concernswere how were they going to get by, the sense that there was no way out of their direcircumstances and the ever-present possibility of a rent increase and /o r being forced tomove. Carol, who was paying $240 a week and constantly having to draw on her capital,was desperately worried about her dwindling financial resources and was also concerned

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that she would be forced to leave her accommodation shortly. It had been earmarked fordevelopment. She loved the location as she was living in walking distance of her son andex daughter-in-law and grandchild:

Yes. I'm on medication for depression...I think that's helping. Just tokeep me going. Otherwise I'd become quite suicidal really ...It's a battlethat can get you down. I think I'm quite a strong reasonably intelligentwoman and I do reason quite well. I think I'm fairly grounded. But it's[her financial situation] still getting the better of me. You know, ratherthan me getting the better of it. It's getting the better of me and I don'twant that to happen. I don't want to fall down in a screaming heap, forwant of a better way to put it.

Another interviewee also spoke of her depression. Certainly her desperate financialsituation had contributed: 'Well, it upsets me. I've been going through a big depressionand that. It gets me down, you know. When I think how my life was once and what it isnow' (Anne). A couple of the interviewees spoke of how their situation had made themthink of suicide: 'And there have been times when I've thought what is the point to life. Ireally have thought this can't go on, you know' (Lynne).

The inability to afford basic items

Many participants told of how they were unable to purchase basic items such as newclothes:

I never buy new clothes ever...I always go to the opportunity shops. Iwas knitting my own garments but I found it's more expensive to buythe wool and to knit them than it is to actually go to the op shop andbuy them second hand. I can buy them second hand for $3. $3 to $5.(Helen)

Another interviewee said, 'Well that's how I've been able to survive. I get everythingsecond-hand' (Lynne). The notion of buying new clothes was anathema for almost all ofthe participants. Besides clothes, many of the participants could not afford to maintainhousehold items. Once something broke it was difficult to repair or replace. Thispotentially had serious consequences for interviewees:

The [washing] machine is break down...then I call the man to come andlook and repair. But can't repair. Lot of money to do repairing. But Ican't get another one...Then I go and talk with Salvation Army. Canyou help me for the washing machine? Nearly every two months I go. Ihaven't got a machine. Sometime I wash by hand. And now the day iscome I can't wash by hand...My heart is not work properly. When it iscold then my hand is all blue. Then I can't touch anything (Shireen).

Anne had the followdng comment: 'Well I've had a few things break down...that I can'treplace. I mean I haven't got a microwave oven. That's sitting out...there...And I don'town a vacuum cleaner. And I haven't got a heater'. She said that even if she had a heatershe would not use it as she could not afford the running costs.


Charity usage

Interviewees told of how they had been forced to seek help from charitableorganizations. Organisations like St Vincent de Paul and the Salvation Army were veryimportant, especially for those participants who had no family members they could drawon in times of need:

Yesterday I got money [the pension]. I pay all of everything. Then I buytwo things for myself and then I got no money to buy the grocery. ThenI go and talk with Salvation Army. They give me the voucher for S20 tobuy the food (Shireen).

Well, you manage to a certain degree, but I'll be honest with you, I'vehad to call on St Vincent de Paul and they've been very good. They'vehelped me with different things and that through the time_.and they'vebeen very good (Anne).

For interviewees resorting to charity was not an easy thing to do:

I feel terrible. You know you feel you're like somebody going with abegging bowl or something like that, but I mean when the time comesthat you just don't have quite enough to pay your electricity or yourphone, well rather than get it cut off, well they'll help you out. Ah. itwas terrible the first time. Yes. It was really awful. You have to walkthrough the shop...and you sort of come out with some groceries in abag. Well they know where you've been and what you've done (Anne).

Some participants refused to make use of the services on offer. It was viewed as toodemeaning: 'And then they say there's food, things you can get. But I've been reluctant todo that. It's against my dignity to do that. I'd sooner go without' (Matthew).

Isolation and restricted leisure activities

The lack of resources encouraged isolation. Interviewees told of how it was difficult toengage in social activity and move around.

I've become very isolated. I used to, before I had the hip [operation],I used to play tennis, and I loved to play tennis and it was a good wayof keeping the weight off and being active. But I really can't afford [to].I've found a few clubs that I could go and play in. I'd like to get backto it, but they say, "Ah, the fees are this and you pay it annually." And Ican't come up with $150 or $200 or whatever (Matthew).

Interviewees said that they often had to turn down invitations because they could notafford the cost of the outing:

And the big thing is too, again, ego or vanity or something, that youdon't like telling people that I can't go to this function because I can'tafford to go. So I make excuses. I ring up and say I'm ill or have to goto a funeral, or something (Julie).

The increase in the cost of public transport from $L10 to $2.50 in January 2005, was abig blow for many of the interviewees:

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On the Edge- the Financial Situation of Older Renters in the Private Rental Market in Sydney

And I mean public transport is the only thing you can use, and thatcosts you S2.50 a day....Well it was a massive bloody increase....It was ahell of a hit. I mean it went up from $110 to $2.50 (Rod).

I want to go out sometime. I've got no fare to go. Before it was all right.It was $L10, now $2.50. Very hard to find it (Mary).

Conclusions

The interviews indicate that the situation of many older private renters in Sydney is direand that existing policy to ameliorate their position is not adequate. Despite receivingCommonwealth Rent Assistance, most of the unsubsidised private renters were spendingat least half of their income on rent and their financial situations were very precarious.Any unexpected expense was an enormous blow to the individual concerned.

The seriousness of the situation is amplified when we examine the future scenarioaround homeownership and social housing. Using data from the 1986 and 1996Census, Judith Yates concluded that the overall homeownership rate had dropped from68.2 percent in 1986 to 66 percent in 1996 and the 2001 Census showed that therehad been 'little change in the overall homeownership rate since 1996' (Yates 2003: 1).Homeownership rates in the 45-65 age group declined by only 0.5 percent between 1986and 1996 to 77.4 percent, however for the 25-44 year-old age group in metropolitanareas, homeownership rates had fallen by 10 percent in this period. In 1996, 58.7 percentof 25-44 year-olds owned their homes and only 19.7 percent of this group owned theirhomes outright (Yates 2003). Yates concludes A sustained decline in the rate of homepurchase can lead to fewer outright owners in the future' (Yates 2003: 3). The figuressuggest that by 2050 up to a third of older people could be non-homeowners anddependent on the private rental market due to the lack of social housing. Also, despitethe introduction of superannuation in 1989, it has been estimated that in 2050, 75percent of older Australians will still be dependent on the aged pension for all or part oftheir income and half of the 75 percent will be drawing the full pension (Gittins, 2006).

There is also the likelihood that many of these older renters will have minimal or nofamily support. The 2001 Census indicated that 23 percent of households are singleperson households and that an increasing proportion of Australians are not marrying orhaving children. In 1981 only four percent of Australian women between 45 and 49 hadnever married; by 2000 the proportion had increased to over 20 percent (McDonald2000, p. 51). In 1998 the ABS estimated that 23 percent of women and 28 percent ofmen will never marry (in McDonald 2000: 43). It is likely that the family connections ofa high proportion of the individuals who never marry wall be minimal and that when theyreach their retirement years they will be living by themselves. In sum, the data indicatethat an ever increasing proportion of older private renters will be living by themselvesand have minimal or no family connections to ameliorate their financial plight.

The contemporary situation of older renters in Sydney is certainly of concern.What it reflects is that the present policy of relying on market forces to resolve theaccommodation situation of older renters is not working. Older private renters atpresent are a small minority. However, as indicated, the future for older Australiansin regards to housing tenure does suggest that older private renters will become verynumerous. If we want to prevent a scenario where an ever-increasing number of older


Australians are living in grim circumstances, govemment urgently needs to interveneso as to ensure that older non-homeowners have access to affordable and adequateaccommodation.

Acknowledgements

I would like to thank the Faculty of Arts and Social Science at the University of NewSouth Wales that awarded me the grant that enabled me to do the research.

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EndnotesL In March 2006, the maximum CRA a .single person could receive was $100.60 a fortnight. For every

dollar in rent over $89.60, 75 cents is paid up to a maximum of $50.30 a week. Thus if the weeklyrent is $220.30, the CRA will reduce the tenant's outlay to $ 170 a week.

2. All of the names used are pseudonyms.


On the edge: the financial situation of older private renters

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