The Cost of Living Crisis: A call to action for a stronger, more resilient community

As we enter 2025, Australia continues to grapple with an unrelenting cost-of-living crisis that is pushing individuals and families to the brink. Essentials like safe housing, food security, and basic utilities are becoming increasingly out of reach for many. At The Spiers Centre in Perth’s northern suburbs, we see the human impact of these challenges every day—and we know that real solutions require a collective effort.

The Reality of Rising Costs

The surge in inflation and interest rates has left countless households across Western Australia struggling to make ends meet. At the same time, WA faces a critical housing shortage, driven by population growth, construction costs and supply chain issues, a rise in short-term rentals, and increasing numbers of single-person and single-parent households. The result? A skyrocketing demand for housing that is leaving many without viable options.

For some, the rising cost of rent, groceries, and utilities means cutting back on non-essentials. For others, it means making impossible choices—paying rent or putting food on the table. These decisions are not just heartbreaking; they are unsustainable.

A Community in Crisis

At The Spiers Centre, we have witnessed a sharp increase in the number of people seeking assistance—many experiencing financial hardship for the first time. Homelessness is on the rise, and even more individuals and families are now at risk of losing their homes.

Recent reports suggest that Perth’s rental crisis may be easing, but this is far from a victory. While some analysts note a slight improvement, rents remain unaffordable for many and are amongst the highest in Australia. Vacancy rates in the private rental sector have been at historic lows, according to REIWA, dropping as low as 0.4% last year. REIWA report the vacancy rate climbed to 1.9% in December, while others, such as SQM Research and Statista.com suggest it remains well below 1%.

Whatever the true picture, we are still far from a perceived balanced rental market at 2.5-3%, where tenants and landlords share an equitable footing. For those living on the financial edge, the cost of living is no longer a crisis but a grim new normal. Those with the least are doing it the toughest, and even a dramatic improvement in vacancy rates would offer no relief, when the cost of securing a home is so far out of reach for so many.

The urgency of these issues is reflected in recent studies showing that the cost-of-living crisis is a key concern for voters in both the upcoming State and Federal elections. Candidates and political parties cannot afford to ignore this reality. Australians are looking for leaders who will prioritise solutions to rising costs, housing affordability, and poverty alleviation. These elections present a critical opportunity to drive meaningful change, but only if we hold policymakers accountable.

Urgent Action is Needed

However, this is not just a story of statistics. Behind every figure lies a story of struggle and resilience: a mother juggling multiple jobs while trying to keep a roof over her children’s heads, a retiree skipping meals to afford medication, a young family sleeping in their car because they can’t find an affordable rental. These are the stories we hear every day at The Spiers Centre, and they demand urgent action.

What is clear is that this is not a crisis of temporary hardship – it isn’t going away anytime soon. Band-aid solutions are not enough. We need a coordinated effort from government, business, and the community sector to address both the immediate needs and the systemic issues that perpetuate disadvantage.

This includes:

Increasing access to affordable housing: Governments must invest in social and affordable housing.

Strengthening social support systems: Income support payments must reflect the real cost of living—no one should be living in poverty in a country as wealthy as Australia.

Investing in community services: Increased funding is essential to meet growing demand for critical services like emergency relief and financial counselling.

Addressing the root causes of poverty: Long-term solutions must focus on education, employment opportunities, and tackling systemic inequality to create lasting change.

Neil Starkie is CEO of The Spiers Centre, a partner agency of the Financial Wellbeing Collective. Neil has many years of leadership experience in the community services sector.