Rental affordability across regional Victoria has continued to decline, falling to its lowest level on record, according to the 11th annual National Shelter-SGS Economics and Planning Rental Affordability Index.
On average, affordability has declined by 3% across regional Victoria. The average renting household, earning $87,320, now spends 28% of its income on a median rental. Rents in regional Victoria are now classed as Moderately Unaffordable with a RAI score of 107.
The Rental Affordability Index now includes Housing All Australians as a key partner, reflecting the critical role of business and public-private partnerships in addressing the nation's housing crisis.
The Index found a single person on JobSeeker faces Extremely Unaffordable rents, spending 61 per cent of their income on a rental. Meanwhile, single pensioners spend 38 per cent of their income on rent, and a single parent on benefits spends 43 per cent of their income, both facing Severely Unaffordable rents.
Tenants Victoria CEO Jennifer Beveridge said: “Our frontline services are reporting major concerns around housing affordability with demand rising from renters who need our help.
“We’re seeing more people on modest incomes, like teachers, emergency service workers and hospitality workers forced to move away from their jobs, families and support network.”
SGS Economics & Planning Principal Ellen Witte said: “Affordability across regional Victoria has sharply declined since 2020, driven by large numbers of people leaving Melbourne, rising construction costs and a slower pace of new housing development.
“Coastal communities such as Warrnambool and Apollo Bay, which offered Acceptable rents pre-2020, are now ‘Unaffordable’, with median rents consuming over 30% of the average income.
“For a long time, regional Victoria has been seen as the pressure valve for Melbourne’s housing market, but that’s no longer the case. Rental affordability in regional cities such as Bendigo, Shepparton and Ballarat have continued to decline and are now considered ‘Moderately Unaffordable’ or worse for the average household.”
Robert Pradolin, Founder & Executive Director of Housing All Australians, which has recently become a partner in the Affordability Index, said the rental crisis was having a major negative impact on regional economies and communities.
“From cafes and hotels to hospitals and childcare centres, Victorian businesses are struggling to find staff because there’s nowhere affordable for them to live nearby,” he said.
“The affordability crisis is imperiling many regional towns which are struggling to stay alive. If we want to see thriving regional economies, we need to invest in affordable homes for the people who work hard to keep our communities moving. Governments cannot address the housing shortfall on their own and so innovative public-private partnerships will continue to be vital.”
|
Household |
Affordability |
Rent as share of income |
RAI score |
|
Single person on JobSeeker |
Severely unaffordable |
61% |
50 |
|
Single pensioner |
Severely unaffordable |
38% |
79 |
|
Pensioner couple |
Unaffordable |
31% |
98 |
|
Single part-time worker on parent benefits |
Severely unaffordable |
43% |
70 |
|
Single full-time working parent |
Affordable |
19% |
160 |
|
Single income couple with children |
Acceptable |
23% |
133 |
|
Dual income couple with children |
Very affordable |
11% |
265 |
|
Student share house (three bedroom) |
Acceptable |
24% |
128 |
|
Minimum wage couple |
Acceptable |
21% |
146 |
|
Hospitality worker |
Acceptable |
24% |
125 |
* Table comparing each household in regional Victoria and their rent as a share of income, as well as RAI score and affordability.
EDITOR’S NOTE: The Rental Affordability Index scores are based on median rental prices and the average income of renting households within a capital city or rest-of-state area. A score of 100 represents the point where the average household spends 30% of its income on rent, the critical threshold for housing stress. Lower scores indicate worse affordability.
Contact details:
Lauren Ferri 0422 581 506