Debate on the housing crisis has branched out to consider strains on the rental market, as we near the federal election on May 3. 

Why? For too many Australians, the aspiration of being able to afford to rent — let alone buy — a home has become the new reality.

Almost one third (31 per cent) of Australians rent the household they live in, Australian Bureau of Statistics data show, and their number is rising, which increases demand.

In a Budget Direct survey of 980 Australian tenants, one third (35.8 per cent) said they have lived in one to three rental properties, with one fifth saying they planned to rent forever.

Renting is evidently not only a necessity; for some people, it can be a lifestyle choice. But the survey indicates a growing preference for not moving frequently, and for staying in long-term leases, as opposed to renting as a temporary or transitional choice before buying a property.

How renting functions in the broader market is central to understanding the stresses contributing to the housing crisis — and how effectively election policies could address it.

What's happening in the rental market forms a key part of the housing supply push from both major parties.

We'll get to that in a moment. First, let’s break down what renting is.

The basics of renting

An owner of a property that is unoccupied can decide to lease it to tenants as a source of income.

People can apply to become the tenants of the property via a detailed application form. If accepted, a bond is secured, and a residential tenancy agreement is made.

As Housing Victoria explains, a bond is a security deposit: an amount of money that most residential rental providers will ask you to pay, if you want to live at their property.

The rental agreement is the contract between the landlord and the tenant outlining how much the rent is, when to pay it, and the duration of the lease.

Meanwhile, it is the landlord, the rental provider, who is responsible for the living conditions of the property, ensuring any issues are repaired for those living there.

The mandate on standards

It's worth pointing out that there are 14 categories of minimum standards for rental properties that are mandated in Victoria, Consumer Affairs Victoria explains. In Australia’s broader rental market, similar categories apply.

All rental properties must meet the standards for each category.

If the rental property does not meet the 14 minimum standards, fines and penalties can be issued.

Renters have rights. They are entitled to find a property that is in good condition. And the law states they can’t be refused a property based on personal characteristics, or that could be a case of discrimination.

As the Federal Government states on its Study Australia website, renters also have the right to privacy. 

Renters can end the tenancy, whereas the landlord has the right to end the agreement early if the renter has kept pets at the home without permission, or not paid the bond or the rent on time, as Consumer Affairs Victoria points points out.

The notice period for ending the tenancy varies depending on the reason, so following the rules laid out in the agreement is important for both tenant and landlord.

Meanwhile, housing supply and demand is a big issue in Victoria.

Last month, the Victorian Government revealed draft structure plans for what it calls Australia's largest housing project, with new homes around six suburbs in the city’s east.

So with the tightening rental market and the rise in rental prices, what are the major federal political parties promising, if elected on May 3?

Election policies

Labor’s housing agenda totals an investment of $33 billion.

In the 2025-26 Budget, the Government increased maximum rates of Commonwealth Rent Assistance by 45 per cent for about 1 million households.

If re-elected, Labor intends to provide stable and affordable five-year tenancies, with an estimated 80,000 new rental homes constructed around Australia over the next decade.

This is alongside its aim to build towards the target of 18,000 social and affordable homes, as part of its $10 billion Housing Australia Future Fund.

As part of the opposition’s budget reply, the Liberal Party said it intends to set stricter caps on foreign students as a strategy to take off pressure on the rental market.

The Liberals also intend to invest $5 billion in essential infrastructure to unlock 500,000 new homes.

The debate on housing and renting has also fostered criticism of both major parties, bringing to the fore independent candidates and the Greens. 

The Greens intend to establish a National Renters Protection Authority to support renter rights across Australia and plan to limit rent increases to 2 per cent every two years. 

Teal independent for Kooyong Dr Monique Ryan supports increases in Commonwealth Rental Assistance and investment in public and social housing. 

The independent federal member for Goldstein, Zoe Daniel, is proposing a national 'Under One Roof' housing summit in 2025.

Daniel intends to bring together the federal and state governments, unions, industry and banks, alongside local governments for a unified approach to solving the housing crisis.

The Greens and independents could play a significant role in diversifying proposed solutions to the housing crisis in years to come.