A new housing report has found that rental accommodation is increasingly unaffordable because a dramatic supply shortage continues to push rents higher.
While most Australians are aware of the current rental crisis, the annual Rental Affordability Index (released by SGS Economics, National Shelter, Brotherhood of St Laurence and Beyond Bank) clearly spells it out.
Every corner of the country is struggling to meet the demand for rental properties and contain rents.
Industry researcher CoreLogic recently reported that, in the past 12 months, metro rents had risen 9.1% across Australia. This is the steepest one-year increase in 14 years.
In the regions, it’s worse with rent rises recorded at 10.8%.
These are some key points from the Rental Affordability Index:
- Rental affordability has slumped in every capital, and it’s worse in the regions.
- The affordability progress achieved during the pandemic in Sydney, Melbourne, Adelaide and Canberra disappeared this year. Hobart is the most expensive city based on a rent-to-income ratio, while Brisbane has never been so expensive by that measure.
- 42% of all low-income households reported rental stress. Of those renting in the private sector, that number is 58%.
- Renting stood at 31% of households in 2020, up from 26% in 1995.
- A single pensioner in Sydney or Canberra must spend an average 70% of their income on rent.
- Rising rents are outpacing JobSeeker increases, promoting a high risk of rental stress. Canberra and Greater Sydney are the least affordable capitals for singles on JobSeeker.