Fears are being flagged over a flood of Commonwealth Games staff, teams and tourists who could further displace regional Victorian renters already being “priced out” of their towns.
Victoria is set to host the 2026 Commonwealth Games, with Premier Daniel Andrews saying it won’t be like the 2006 Melbourne Games. Mr Andrews announced on Tuesday the games will be significantly different with it to be spread across the region. The games will be a $3 billion investment, including infrastructure and tourism. There will be four major hubs and athlete villages, which will be in Gippsland, Geelong, Ballarat, and Bendigo, where 16 sports will be held across the four Victorian regions.
It comes as rental prices have soared by thousands of dollars a year in suburbs earmarked as locations for the Commonwealth Games athletes villages in 2026.
New analysis by the Community Housing Industry Association Victoria has shown tenants are paying up to $100 more a week compared to 2020.
Several charity groups have warned the Games would worsen the housing crisis in regional areas, and the CHIA says the effects are already being seen, three years in advance of the sporting spectacle.
The Victorian Housing Peaks Alliance has warned that regional Victorians could be displaced from their homes, caravan parks and motels.
“Big sporting events can drive up rents, make housing less affordable and exacerbate homelessness,” the alliance said in a statement.
“As Victoria plans new and upgraded Games infrastructure, housing must be front of mind.”
The site of Geelong’s athletes village.
CHIA acting chief executive Jason Perdriau said median rents for units and houses had surged between 21 per cent and 42 per cent across the postcodes in Bendigo, Ballarat, Geelong and Gippsland of the proposed village locations.
“We can’t allow the same thing to happen with no solutions over the next three years ahead of the Commonwealth Games,” he said.
Preparation for the athletes villages has meant Victoria has been racing against the clock to build four village precincts in Delacombe, Flora Hill, Mt Duneed and Morwell, within the time frame.
The Ballarat athletes village site.
Mr Perdriau said he hoped the state budget would deliver a solution to the rental crunch.
“We are calling on the state government to spend $6bn on a Social Housing Investment Fund which would provide a clear annual pipeline of social housing projects, delivering 20,000 homes across the state over the next decade,” he said.
Emma McKeon (in water), Lizzy Dekkers and Alex Grant at the Australian Dolphins swim camp last year, at one of the Bendigo venues likely to be used as a Commonwealth Games venue. Picture: Supplied
Tenants Victoria chief executive officer Jennifer Beveridge said the state government should introduce a “fairness formula” for rent increases to clamp down on gouging.
“Many Victorian renters are already being forced out of their communities by low vacancy rates and soaring rents,” Ms Beveridge said.
“Tenants Victoria is worried that, three years out from the Commonwealth Games, people are already being priced out of their own towns.
“For a while now people have been telling us that they can no longer afford to live in the communities that have long been their homes.
“Renters on low incomes, and even middle incomes, are finding it tough.
“We are concerned that an influx of Games staff, teams and tourists in the areas that will host the Games will further displace renters.
“In the communities that will be hosting the Commonwealth Games we also need to stop a rush on homestays.
“The state government should work with councils and property investors to keep properties as traditional rentals.”
The Morwell athlete villages site.
The Bendigo Village athletes village.
The Housing Peaks Alliance said the rental squeeze could also increase domestic violence incidents.
“Regional Victoria doesn’t have a lot of dedicated crisis accommodation,” it said in a statement.
“This has led to an almost complete reliance on privately-owned hotels, motels and caravan parks.
“Major sporting events also create surges in family violence incidents and demand for crisis accommodation.
“Family violence is already the primary cause of homelessness for women and children, and this issue is likely to grow during the Games.”