Tenants in two capital cities are paying more than 30 per cent of their income, on average, towards their rent — for the first time since the SGS Economics Rental Affordability Index was first published a decade ago.
Rental affordability has deteriorated in greater Perth, Adelaide and Sydney, while Tasmania and the ACT were the only states and territories to see an improvement.
"If I had to get up and move, say to the country, I would lose all those connections here that I've built up. Lead researcher of the report Ellen Witte said the figures reflected Australia being "in a deep housing crisis" where unaffordable rentals had "spread like an oil stain" into outer-suburban and regional areas.
Tasmania was one of only two states to see affordability increase — the other was the ACT. But it came after a 21.5 per cent jump in rents in Hobart between 2020 to 2022. "We're now seeing people who are paying well north of that 30 per cent, even 40, 50, 60, 70 per cent of income … to secure a property," said John Engeler, chair of housing advocacy organisation National Shelter, which contributed to the report."That's the reason we've had to introduce that new, more severe category to illustrate how dire the situation is."
Ms Witte attributed the worsening rental affordability to rising inflation, higher interest rates, and a return to pre-pandemic population growth. "I think the system is flawed. We need new housing stock so make investors buy only new houses and have perks for new." "We shouldn't forget that about a third of all households in Australia are now renting, often for the long term.
"We're seeing more and more people rent as a tenure for life. We're not seeing the same level of people moving into home ownership. So the size of the rental market is increasing."Kos Samaras, director at research company Red Bridge, said housing, especially renting, would be on the agenda for voters next year.
Tenants House Prices Landlord Sgs Economics Afford Inflation Economy Renting Housholds Families Pension Jobseeker Housing Solutions Negative Gearing Interest Rates
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