Rental stress continues to heat up
As costs continue to climb, data reveals that the rental crisis isn’t just sticking around but is getting worse – leading to a call for the implementation of “immediate and practical” measures to keep people in housing.
The latest Rental Pain Index by Suburbtrends for April 2024 has shown the grim conditions many Australians are facing as they struggle to manage their rental costs.
Suburbtrends’ report showcases the average national rental affordability is critically positioned just above the 30 per cent mark, with 30.5 per cent of income on average required for rent payment.
The situation is most dire in Western Australia, where rents climbed 15.66 per cent over a 12-month period, on average.
The increase means renters in the state are now having to fork out 30.18 per cent of their income to have a roof over their heads, with the report placing their Rental Pain Index (RPI) score at 85.01.
Queensland and NSW are not far behind, with both states seeing rental increases over the last 12 months of 10.22 per cent and 10.38 per cent, respectively.
With these increases, Queensland and NSW residents are poised to pay 32.09 per cent and 32.81 per cent of their income respectively on rent, cementing their bleak RPI scores of 85.03 and 81.84 in that order.
Even in areas with smaller rent hikes such as the ACT and Northern Territory, renters are still spending upwards of 24 per cent of their income on rental payments.
Kent Lardner, founder of Suburbtrends, stated the findings are a key indicator of “people struggling to keep a roof over their heads”.
“Younger Australians, especially, are finding it tougher to find affordable homes as they are squeezed out by the tight market and high prices.”
Lardner was vehement in stating that these results directly necessitated the need to think differently about housing solutions in order to “swiftly ensure accessible and affordable housing for all”.
“Mobile home villages and prefabricated small homes represent immediate and practical options to expand our housing supply as quickly as possible.”
“By embracing these methods, we can avoid the dire scenario of Australians being forced into living in cars or tents,” he concluded.