THE rental crisis is still raging on across the country as rental rates continue to rise, supply remains low and an increasing number of regions face extreme rental pain.
According to the latest Rental Pain Index from Suburbtrends, the percentage of SA2s nationally with an index of 75 or higher was up from 63% in July to 68% in August.
The national rental pain index (RPI) was at 72, reflecting a vacancy rate of 1.6%, rental affordability at 30% of income and a 12-month rental increase of 8%.
“The massive growth in house prices since in recent years has created a significant gap for most first home buyers, making homeownership increasingly unattainable without familial financial support,” said Kent Lardner, founder at Suburbtrends.
“Those stuck without such support are likely to remain trapped in the private rental market. This month’s data signals a looming reckoning for the political class, who continue to adopt policies that continually drive up house prices.”
This as the PropTrack Rental Report June showed national rents remained unchanged over the June quarter, at $600 per week, but renters have been slugged with a 9.1% increase – worth $50 – over FY24.
The rental pain indices in Western Australia and Queensland are particularly concerning at 82 and 83 respectively.
While major increases were also recorded in South Australia and Victoria, at 82 and 78 respectively.
In NSW the RPI was at 79, while the ACT was at 46, NT was 67 and Tasmania was 61.
“The risk of displacement and homelessness is on the rise, as evidenced by the increasing demand on specialist homelessness services,” added Lardner.
“Immediate measures are needed to provide emergency accommodations and support for those at the brink of losing their homes or already homeless.”
In NSW the proportion of SA2s in extreme rental pain was up from 61% to 67%, with average rents increasing by 10% and 33% of income now being spent on rent.
Queensland saw the percentage of SA2s in extreme pain rise from 76% to 78%, with rents rising by 10% and 32% of income now being spent on rent.
SA saw a minor bump in extreme rental pain up from 79% to 80%, with rents up 10% and 31% of income spent on rent.
While WA saw an increase from 72% to 77%, with rents up 17% and affordability at 32% of income.
Victoria saw a major rise in extreme rental pain rising from 64% to 71%, with rents up 12% and 28% of income being spent on rent.
ACT extreme rental pain rose from 5% to 8%, while NT saw a decline from 36% to 31% and Tasmania rose from 15% to 27%.
