The rental divide is deepening for residents across the country, as a new study reveals that the median rent is unaffordable for households at the median income. Source: News.com.au.
Anglicare Australia analysis found that median rent prices in 140 of the 150 federal electorates across the country were considered “unaffordable”.
Only 10 electorates in the country are classified as affordable for households living on the median income in metropolitan, regional and outer suburban areas.
About 2.9 million households (31 per cent) are renters in the country, with about 6.2 million households holding mortgages.
Anglicare Australia executive director Kasy Chambers said the study’s data indicated that the cost-of-living crisis was now affecting more than those living on low incomes.
“Even households on median incomes are being priced out of large parts of the country,” she said.
“In all but 10 electorates, the median rent is now unaffordable for a household on the median income.
“That should ring alarm bells in every part of politics.”
Ms Chambers said residents were often paying much or most of their salaries on housing.
“When ordinary working households are spending 40, 50 or even 60 per cent of their income keeping a roof over their heads, something has gone badly wrong,” she said.
According to the study, the highest median rent is the Richmond electorate in rural NSW, where the median weekly household income is $1376 but the median rent is $950 – accounting for 69 per cent of income.
In Queensland’s McPherson region, the median household income is $1736 and the median rent is $1020, about 52 per cent of income.
Meanwhile, the other end of the spectrum includes Parramatta, which has a weekly median household income of $2039 and rent of $700. This accounts for 34 per cent of the household’s income.
Ms Chambers said the study indicated a need to shift away from investors who were “chasing short-term capital gains”.
She said the data showed why the rental reforms in this year’s budget were “so urgent”.
“These reforms recognise that Australia cannot keep subsidising wealth accumulation while millions of people struggle to afford the basics,” she said.
FULL STORY
‘Alarm bells’: Study reveals median rents unaffordable for Australian households (By Alexandra Feiam, News.com.au)
