Mt Isa North West Star 04/11/11: Rental squeeze: Miners push up rent

HIGH wages from the mining industry continues to drive Mount Isa home rentals above the state average.

Median rent for all dwelling types in Mount Isa for the year to June 2011 was $370 per week compared with $340 per week for Queensland.

Queensland Shelter senior policy officer for Noelle Hudson said there was no doubt accommodation was impacted by mining.

"It's one of the biggest problems," she said.

"There are two things that aren't great.

"One is that miners are earning big money and landlords see that as an opportunity.

"You get a couple of single guys working in the mines; they share a house and they can afford to pay the high rents.

"But for Shelley who works at the local childcare centre, those rents are just not affordable."

Ms Hudson said the vacancy rate in Mount Isa was 0.8 per cent and the norm was about three per cent.

"So the housing market in Mount Isa is extremely tight; housing is a scarce resource and people are fighting for it,' she said.

Ms Hudson said it was the people in support services who were struggling.

"Those on low to moderate incomes, people on benefits and pensions are finding it difficult to cope in this dual economy," she said.

"They're on the bottom level, not earning the high incomes and they just cannot afford housing."

Ms Hudson said there should be more new housing going in to places like Mount Isa.

"Basic rule of economics - if there's not a lot of it, it's worth a lot of money," she said.

"If we can increase the supply of affordable rental accommodation, that will help."

Ms hudson said the National Rental Affordability Scheme could work in Mount Isa whereby builders or construction companies could apply for funding to build rental accommodation that must be rented out at a minimum of 20 per cent less than market rates.

"The management of these houses is often undertaken by not-for-profit organisations who partner with the builders," she said.

Ms Hudson said this kind of private investment can take the pressure off those on low to moderate incomes who could not manage high rents.

It also took the pressure off the social housing market, she said.

Median dwelling prices for detached houses in Mount Isa was $345,000 compared with $412,000 for Queensland.

For flats, units or townhouses, the median dwelling price in Mount Isa was $237,000 compared to $355,000 for Queensland.