Shocking new research has exposed the reality of racial discrimination in Victoria's rental market, with 69% of those surveyed reporting direct experiences of racism when trying to secure housing.
Some 61% of respondents denied housing or treated less favourably due to their racial or ethnic background, with significant harms associated with these experiences.
"This research gives shocking insight into the damaging impacts of rental racism that's putting families at risk of homelessness, destroying mental health, and leaving lasting scars," said Tenants Victoria CEO Jennifer Beveridge.
"When a mother and her children are driving around homeless for two months because agents won't even return her calls, we have a system in crisis."
The research found that most discrimination came from estate agents and property managers (60% in this sample), with participants reporting being told to "go back to your own country," being rejected based solely on their names, and being selectively denied entry during an inspection.
One participant revealed being repeatedly ignored by an agent who heard their accent.
When they asked a friend with an Australian accent to call and enquire about the same property, the friend was immediately offered an inspection.
The mental health impacts are severe, with 67% of participants reporting their wellbeing worsened due to rental racism.
Families are being forced to offer six months' rent in advance, pay above advertised prices, or accept substandard housing with mould and pest infestations just to secure a home.
These conditions breach Victorian rental laws.
"The discrimination and systemic racism described in our report has damaging consequences, creating barriers to new migrants' ability to build stable lives in Australia," said Dr Erika Martino, lead researcher from the University of Melbourne.
"People are experiencing hypervigilance, fear, stress, anxiety and depression. The mental health costs of racism are substantial and reverberate through our workplaces and community. We need to acknowledge, as the title of the report suggests, that 'Shelter is a dignity' that everyone deserves."
The report also found:
82% identify discrimination as a significant problem in rental housing
61% were denied housing due to racial background
60% of discrimination perpetrated by agents/property managers
67% report that the racism affected their health and wellbeing
53% were required to meet higher standards when applying for a rental
The research identifies multicultural housing workers as crucial to breaking down barriers. These workers bring lived experience, cultural knowledge, and trusted community connections that can bridge the gap between renters from multicultural backgrounds and the housing system.
"The Victorian Government's Anti-Racism Strategy recognises housing discrimination as a key barrier for multicultural communities," Ms Beveridge said.
"Now it's time to back those words with action and funding for more multicultural housing workers. Every day we delay, more families face homelessness and trauma."
Other recommendations include working together with the real estate industry to build positive change with improved training, programs and standards.
The research was conducted with 144 survey respondents and five focus groups of Victorian renters from diverse backgrounds, including Pakistani, Middle Eastern, Hazara, Southeast Asian and South Sudanese communities.
