Renters more likely to have health problems than homeowners

The report said that a lack of public healthcare coverage for those with a chronic condition risks exacerbating the risk of poverty or material deprivation they already face.

Renters have poorer health outcomes than homeowners while low levels of medical card coverage put many of them at a “high financial risk in the event of a health emergency”.

New research from the Economic and Social Research Institute (ESRI) has identified that a quarter of private renters with a chronic illness are at risk of poverty, yet the majority of them lack a medical card.

Those in the supported rental market, receiving assistance such as social housing or Housing Assistance Payment, experienced the worst health outcomes, according to the ESRI.

“Half of all older adults [aged 65 and older] in supported rental housing report poor self-reported health, in contrast to one-third of older homeowners,” the ESRI said.

“A decline in medical card coverage among supported renters is found, with only 74% holding a medical card in 2021 compared to 87% in 2015. Less than half of employed supported renters possess a medical card, despite facing a high risk of poverty and having incomes that qualify them for public housing assistance.”

In general, there was a drop in medical card coverage across all three tenure groups — private rental, supported rental, and homeowner — in recent years. 

The ESRI said this arose as incomes increased post-recession, and the thresholds for the medical card remained unchanged, meaning that fewer people were eligible to receive one.

However, it also pointed out that while eligibility thresholds have expanded for social housing supports, the same has not happened for the medical card.

There was a marked difference across age groups in the rental sector when it came to health outcomes, according to the report.

“Younger renters in the private rental market predominantly report good or very good health, as well as a low incidence of chronic illnesses,” it said.

“However, the relatively higher rates of good health quickly taper off when considering those aged 50+ living in private rental accommodation.”

What's your view on this issue?

You can tell us here

The report said that a lack of public healthcare coverage for those with a chronic condition risks exacerbating the risk of poverty or material deprivation they already face.

The ESRI said that this suggests that a medical card system based predominantly on healthcare needs, as opposed to income, may offer greater protection, particularly for those with a chronic condition who fall just outside the income threshold.

It also said it is possible administrative costs, stigma, and a lack of awareness around medical card eligiblity also underpin the lower take-up of medical cards in this group, particularly for those in employment.

ESRI senior research officer Brendan Walsh, an author of the report, said: “Despite both housing and healthcare supports being integral parts of the social welfare system, a disconnect exists between them.

“Greater synchronisation between housing and health, and policies such as indexing income thresholds for medical cards, would see many vulnerable groups benefitting the most, including employed supported renters and lower-income private renters.”