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With five Australian states and territories seeing double-digit rental increases over the past year, over two-thirds of the country is now facing severe stress.
In one month alone, the number of Australian suburbs experiencing rental pain rose by 5 percentage points, bringing the national total to 68 per cent.
According to the Suburbtrends Rental Pain Index for August 2024, the rental crisis is worsening across Australia.
Kent Lardner, founder of Suburbtrends, stated that the latest statistics reflect a dire need for meaningful action.
“The risk of displacement and homelessness is on the rise, as evidenced by the increased demand on specialist homelessness services. Immediate measures are needed to provide emergency accommodations and support for those at the brink of losing their homes or already homeless,” said Lardner.
The pain indexes are worst in Queensland, Western Australia and South Australia, with over 77 per cent of each state’s rental population facing extreme rental pain – calculated by intersecting data on income, listings, vacancy and rental rates.
“The massive growth in house prices in recent years has created a significant gap for most first home buyers, making home ownership increasingly unattainable without familial financial support. Those stuck without such support are likely to remain trapped in the private rental market,” said Lardner.
Areas where rental pain is the worst include Sydney’s western suburbs, the Blue Mountains, Bundaberg, Rockhampton, Wallaroo, Broome and Bunbury – with renters spending up to 53 per cent of their income on rent.
In total, 55 suburb areas across Australia hit the maximum possible score on the rental pain index.
More stable rental conditions are seen in the ACT, the Northern Territory and Tasmania, where rental rates have seen only slight annual increases. According to Suburbtrends, the stark regional variation in regional rental pain indicates the need for a nuanced approach to alleviating rental stress.
“This month’s data signals a looming reckoning for the political class, who continue to adopt policies that continually drive up house prices,” Lardner concluded.
