Rental Pain Index Report: July 2024 - Easing Pressures and Persistent Affordability Issues
Date: July 8th, 2024
The latest Rental Pain Index (RPI) data for July 2024 reveals a complex picture of Australia’s rental market, with significant state differences, changing levels of rental distress and emerging signs of easing pain. However, the impact of high rents remains a critical issue, affecting households nationwide.
The RPI data highlights stark differences across states. New South Wales (NSW) saw a slight decrease in the proportion of suburb areas (SA2s) in extreme rental pain, dropping from 72.54% in June to 71.69% in July. In contrast, Queensland (QLD) experienced an increase from 80.98% to 81.22%, indicating worsening affordability challenges. Western Australia (WA), despite having the highest rental increase rates, showed a marginal decrease in extreme rental pain from 83.74% to 82.76%.
Kent Lardner commented, “While we are seeing early signs of easing rental pressures in some areas, the broader picture remains challenging. States like Queensland are facing significant affordability issues, with over 80% of SA2s in extreme rental pain.”
Nationally, the proportion of SA2s experiencing extreme rental pain increased slightly from 72.25% in June to 72.90% in July. Victoria (VIC) saw a modest reduction, dropping from 75.37% to 74.58%. Tasmania (TAS) recorded significant improvement, reducing extreme rental pain from 29.87% to 27.27%, indicating better rental affordability.
Lardner further noted, “The slight improvements in states like Tasmania are promising, but we cannot overlook the fact that high rents are still a burden for many households. Stabilising rents is not enough; we need to see rents falling below 30% of household income to ensure long-term affordability.”
There are encouraging signs of easing rental pressures in certain SA3 regions. Areas like Hawkesbury in Greater Sydney and Jimboomba in Greater Brisbane have seen increasing vacancy rates, suggesting potential easing of rental pain. However, high rents continue to be a major concern, especially when they consume over 30% of household income.
“The impact of high rents on household budgets is profound,” Lardner added. “Many families are forced to allocate a substantial portion of their income to housing, leaving little room for other essential expenses. It is crucial for policymakers to focus on reducing rental costs to sustainable levels.”
For further information or to schedule an interview with Kent Lardner, please contact:
Kent Lardner
Email: kentlardner@suburbtrends.com.au
Mobile: 0458 936 912
Local data: A full Excel version is available to assist journalists with more regional versions of the RPI.
Maps: We can assist media requests to create 'heatmaps' to embed online.
