Australia’s rental crisis remains severe despite a modest easing in rent increases in some areas, according to new data.
The latest Suburbtrends “Rental Pain Index” for September 2024 revealed that many regions are still experiencing extreme rental stress, which is being exacerbated by low vacancy rates and a shortage of affordable rental stock.
Nationally, 68 per cent of suburb areas were in a state of ongoing rental stress across the country, despite rents easing.
In New South Wales, 65 per cent of areas are experiencing extreme rental pain, with average rents increasing by 9 per cent and 33 per cent of income spent on rent.
Queensland shows a modest improvement, with 75 per cent of areas in extreme pain, despite rental prices rising by 10 per cent and 32 per cent of income allocated to rent.
South Australia saw a rise in extreme rental pain to 81 per cent, with rents increasing by 11 per cent and 32 per cent of income spent on rent.
Western Australia experienced stability, with 77 per cent of areas in extreme pain, driven by a 16 per cent rent increase and 32 per cent of income going towards rent.
Suburbtrends founder, Kent Lardner said viewing slower rental price growth as an indicator of improving conditions is a mistake.
“Focusing solely on rent increases can be misleading,” Mr Lardner said.
“Even in areas where price hikes have eased, many renters continue to face severe affordability issues, with rent consuming well over 30 per cent of household income
He said that the slowing pace of rental increases does not mean the crisis is over, but rather that the pressure has shifted slightly while overall stress on renters remains severe.
Mr Lardner said the human cost of the crisis is very real.
“It’s not just about numbers; it’s about people at risk of losing their homes,” he said.
“The RPI data shows that the risk of displacement and homelessness is still very real.”
The persistent housing shortage is keeping vacancy rates dangerously low, making it harder for vulnerable populations to find shelter.
Mr Lardner said a potential solution has emerged from organisations like Sydney Anglican Property (SAP) and Anglicare, who are using underutilised land and buildings to provide long-term affordable housing solutions.
“Initiatives like SAP’s efforts to develop affordable housing on church-owned land demonstrate the kind of innovative thinking we need,” he said.
“By turning unused spaces into housing, we can start to address the supply-side issues at the heart of this crisis.”
