Even Australians on median incomes are in rental stress, a new report has found, with households on middle incomes spending 33 per cent of their wages on housing. Source: The Guardian.
Last year saw the smallest annual rental increase since 2021, going up 4.8 per cent over the year – down from 8.1 per cent in 2023, CoreLogic’s report found.
But since the onset of Covid, rents have increased by 36.1 per cent nationally, equivalent to a rise of $171 a week, or $8884 a year at the median level.
Housing advocates say out-of-reach house prices and growing rents mean the system is in crisis. With 10,000 new people accessing homelessness services each month, they are calling for governments to introduce a cap on rent increases.
CoreLogic economist Kaytlin Ezzy said as of September 2024 households on a median income now have to spend 33 per cent of their pre-tax income to service the median rent, the highest percentage since CoreLogic started tracking rental affordability in 2006.
“The net result has potentially seen some prospective renters delay their decision to leave the family home,” she said.
By December, the median rent on realestate.com had surged 11.5 per cent over the year to $580 a week.
Maiy Azize, a spokesperson for housing campaign Everybody’s Home, said while the growth may be slowing the pain is still being felt.
“We need limits on rent increases,” Ms Azize said. “Australia is one of the only developed countries where unlimited rent increases are legal. Only the ACT has legal limits, and the numbers show that it’s working – Canberra is the only capital city where rents are stable.”
She said it was clear the private sector had failed to provide stable affordable housing, and called on the Government to build more social homes.
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Middle-income Australians experiencing rental stress with a third of pay spent on housing, report shows (The Guardian)
