Here’s a shocking truth: Australia’s rental crisis has a hidden face, and it’s the Baby Boomers. But here’s where it gets controversial—while many assume younger generations are the primary victims, it’s older Australians who now make up the largest group relying on Commonwealth rent assistance. And this is the part most people miss: nearly a quarter of those needing help to pay rent are age pension recipients, aged 67 and over. This startling revelation comes at a time when tenants are already facing shrinking options, as investors may be forced to sell properties due to looming financial pressures. Former Reserve Bank of Australia (RBA) board member Warwick McKibbin predicts four 25-basis-point rate hikes by 2027, pushing the cash rate to 4.6%—a level not seen since 2011. This could further squeeze landlords and exacerbate the crisis.
Why does this matter? Because the rental market isn’t designed for older Australians, and the age pension falls short for renters. Unlike younger generations, many Boomers missed out on affordable housing in the 1980s and 1990s, leaving them financially vulnerable today. Add to that the challenges of age discrimination, the difficulty of sharing houses at an older age, and the struggle to qualify for maximum rent assistance, and you’ve got a perfect storm. As Everybody’s Home spokeswoman Maiy Azize points out, ‘The rental market isn’t really designed for older people, and the age pension is certainly not designed for renters.’
Here’s the kicker: While the Federal Government spent $6.4 billion on rent assistance in 2024-25, 43% of low-income households still experienced rental stress. Meanwhile, landlords aren’t off the hook either. Higher interest rates could force investors to sell, reducing available rentals in an already tight market. With just 1.4% of investment properties available in December, according to SQM Research, renters—especially those hoping to buy—face an uphill battle. New lending rules restricting high debt-to-income loans are set to cool the property market, but could they also shut out first-time buyers?
Now, let’s spark some debate: Are Boomers unfairly bearing the brunt of a system they didn’t create, or is this a consequence of broader economic choices? And what role should the government play in redesigning a rental market that works for all ages? Share your thoughts below—this is a conversation Australia needs to have.
