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Holiday homes ‘not to blame’

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Serena Kirby, Denmark Bulletin

Private homes rented as holiday accommodation are not the cause of Denmark’s housing shortage.

The finding was revealed in Denmark Futures’ research over the past 18 months and presented at a community forum last month.

Denmark Futures is targeting affordable housing in Denmark and chair Trevor Hunt said many people were shocked by the data.

The rental market had shifted and with a growing population more people were choosing to rent by choice and home ownership rates were declining.

“Affordability and the shortage of rental properties is having a significant impact on our community,” Mr Hunt said.

“We have a real shortage of essential workers especially in the areas of health and aged care as people are having difficulty moving here due to the lack of rentals and the overall affordability of those rentals.”

Denmark Futures’ research also shows that these trends were not a result of COVID-19 but there had been a long-term decline in Denmark’s rental housing stock since 2006.

There was a growing waiting list for community housing and 30 of the 52 households on the local list were seeking one-bedroom accommodation.

Two thirds of those on Denmark’s community housing waiting list were women.

Mr Hunt said that, in regards to homelessness, the circumstances of these people were not how many people would think.

“We know that 80 per cent of all homelessness in Australia at the moment is people who’ve lost their housing due to expired or cancelled leases or the inability to pay rising rents,” he said.

“Denmark’s homelessness rate in 2021 was 360 per cent higher than the State average and this estimate doesn’t take into account recent cost of living increases.”

In an effort to address the one-bedroom accommodation shortage, Denmark Futures has applied to convert 31 On The Terrace, Edinboro House, at the corner of Strickland Street and South Coast Highway into 10 one-bedroom units.

Last month the State Government’s Department of Communities rejected an application for $1.76 million funding for the $2.3 million project.

Denmark Futures is in the process of applying to other Government departments and avenues to secure funding.

Talks were being held with the Great Southern Development Commission.

Denmark Futures had applied to the Shire for the building’s ‘change of use’.

The Shire has recommended fewer apartments for the project and has indicated parking concerns.

Mr Hunt said community housing was just one sector affected by the housing squeeze.

“Denmark has already far exceeded the government’s population projections and we’ve seen a massive increase in our younger population who, in the future, may not be able to live here due to lack of housing,” he said.

“I think business people are starting to realise that the housing projections for the next decade are looking pretty grim if we don’t do something about our housing infrastructure now.

“It will put further constraints on the ability to deliver services which will in turn impact the community’s wellbeing.”

While Denmark Futures’ current focus was activating affordable rental housing projects for all the population, its underpinning desire was for a thriving community where services and facilities were accessible and supported everyone.

The group, which includes community members, was established two years ago and aims to foster collaborative projects that support a thriving community.

Housing is one of the areas identified as requiring urgent attention.

“I wouldn’t want to be on a waiting list for a house at the moment,” Mr Hunt said.

Several local organisations had asked the group to help find solutions for the growing housing crisis.

Denmark Bulletin 14 September 2023

This article appeared in the Denmark Bulletin, 14 September 2023.

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