Housing Crisis Forces Some Australians to Turn Down Work
Synopsis
A new report suggests concerns over losing eligibility for public housing are prompting some people to forgo employment despite growing labour shortages.
Australia's housing crisis is now impacting employment decisions and some workers are now declining to do more work, promotions or new jobs for fear of jeopardising their social housing, the report by Shelter WA found.
The report The Eligibility Trap polled 180 people who reside in or are applying for social housing in WA. Nearly 90% indicated that they cut their work schedule in order to remain income-elastic and almost half indicated that they turned down job offers due to a lack of affordable housing.
Approximately two-thirds of respondents also reported that having higher earnings would impact their tenancy or their status on the waiting list.
Housing Costs Add Pressure to Labour Market
The results are particularly relevant as Australia's housing crisis continues to have an impact on business efforts to recruit and retain employees.
The Committee for Sydney and the University of New South Wales (UNSW) estimate that a lack of housing accessibility and increased commuting times cost Sydney approximately A$10 billion a year in terms of reduced productivity, reduced labour participation and increased business costs.
Rising housing costs were also found to be driving many essential workers further away from employment centres, further away from their jobs.
The income eligibility criteria for social housing is among the lowest in the country in Western Australia. Shelter WA says the maximum weekly payment an individual can receive is AUD 551, which is lower than all other states and territories.
Housing supply remains inadequate and the cost of renting homes continues to be a challenge in Australia, the National Housing Supply and Affordability Council (NHSAC) said in its 2025 State of the Housing System report. There is also historically low vacancy in several capital cities, putting further strain on lower income households.
Calls for Policy Review
The current eligibility criteria can deter people from improving their income because it can be very difficult to afford private rentals, Shelter WA said.
The organisation has called for a review of income thresholds, transitional support for tenants changing to higher-paid work, and an increase in affordable housing.
Since 2020 the Western Australian Government has raised eligibility thresholds nine times and has put in place A$10.8 billion in housing initiatives, delivering over 4,100 social and affordable homes since July 2021 and over 1,000 more homes under contract, Minister for Housing John Carey said.
Source: The West Australia
Follow Inspirepreneur Magazine for daily global business news.
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
You Might Also Like
Australian Travel Company AVG Travels Enters Liquidation After Cancelled Tours
Boss Energy Rallies on Production Milestone and Growth Plans
