Unveiling the Rental Pain Index — A Stark View into Australia’s Rental Crisis
Date: 26th September 2023
For Immediate Release
Suburbtrends has just released its latest "Rental Pain Index", shedding light on the alarming state of rental affordability across Australia. The index, based on a comprehensive methodology, compiles data on rental increases, affordability, and vacancy rates, scored on a scale of 1 to 100, with 100 signifying the worst conditions for renters.
Kent Lardner, the brains behind Suburbtrends, states, "The Rental Pain Index for September 2023 unveils a disturbing reality. Areas like Christie Downs in SA and Ashcroft - Busby - Miller in NSW are experiencing soaring rental increases of 10%, while renters allocate 41% of their income to afford a roof over their heads."
The data reveals an urgent situation where renters are stretched thin. Suburbs such as Rothwell - Kippa-Ring in QLD and Bass Hill - Georges Hall in NSW have seen unprecedented rental increases of 15% and 17% respectively. Coupled with vacancy rates below 1%, the rental market is increasingly hostile for renters.
"Vacancy rates under 1% 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," Kent adds.
Among the top 25 suburbs facing rental pain, many show Rental Affordability percentages exceeding 35%, a threshold generally considered unsustainable. In St Johns Park - Wakeley (NSW) and Seaton - Grange (SA), renters are allocating 35% of their income to housing, despite witnessing a 13-15% increase in rental prices over the past year.
Kent concludes, "Our index is more than just numbers; it's a call to action. Policymakers and stakeholders need to acknowledge this growing crisis. 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."
For more information, the complete Rental Pain Index and dataset are available for download. For localised reports and data interpretation, contact Kent Lardner at 0458 936 912.
Contact:
- Kent Lardner
- Phone: 0458 936 912
- Email: kentlardner@suburbtrends.com.au
About Suburbtrends
Suburbtrends is a leading real estate analytics firm focused on providing in-depth market insights for business and media. The Rental Pain Index is their latest initiative aimed at offering a nuanced understanding of the rental landscape in Australia.