Analytics Reveal Some Renters Are Spending Over 40 Per Cent Of Income On Rent
New analytics reveal renters are using up to 41 per cent of their income to keep a roof over their heads.
The Rental Pain Index published on Tuesday by firm Suburbtrends unveiled “a disturbing reality” for rental affordability across the country.
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Suburbtrends’ Kent Lardner said suburbs including Christie Downs in South Australia and Ashcroft, Busby and Miller in New South Wales have recorded a 10 per cent rental increase, while renters are spending 41 per cent of their income to afford a home.
Meanwhile Rothwell/Kippa-Ring in Queensland and Bass Hill/Georges Hall in New South Wales have recorded 15 and 17 per cent price increases respectively.
In these suburbs, vacancy rates are falling below one per cent, creating a “increasingly hostile” rental market for renters.
“Vacancy rates under one per cent in most of these suburbs show the immense strain on housing availability. When you’re allocating nearly half your income on rent, as seen in Bass Hill – Georges Hall, the financial stress becomes unbearable,” Mr Lardner said.
Of the top 25 suburbs facing rental pain, many show rental affordability percentages exceeding 35 per cent, which Mr Lardner described as “generally considered unsustainable”.
“Our index is more than just numbers; it’s a call to action. Policymakers and stakeholders need to acknowledge this growing crisis,” he said.
“The relentless climb in rent and plummeting vacancy rates are not just statistics but indicators of a quality of life that is rapidly deteriorating for Australian renters.”
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