RENTAL AFFORDABILITY INDEX
The Rental Affordability Index is issued once a year by SGS Economics, National Shelter, Brotherhood of St Laurence and Beyond Bank.
* Rental affordability has plummeted in every capital city in 2022, with regional areas hit even harder.
* Affordability in Greater Sydney, Greater Melbourne, Greater Adelaide and the ACT improved in affordability during the COVID-19 pandemic but declined this year.
* Low-income households are experiencing rental stress in increasing numbers, with 42 per cent of all low-income households in rental stress in 2019/20 – up from 35 per cent in 2008.
* When this is reserved to the private market only, the number of low-income households in rental stress surges to 58 per cent.
* Rising rents are also outpacing JobSeeker increases, putting single people on JobSeeker at high risk of rental stress.
* Housing stress is defined by housing costs exceeding 30 per cent of a low income household’s total income.
* The proportion of households renting is increasing, lifting from 26 per cent in 1995 to 31 per cent in 2020.
LEAST AFFORDABLE AREAS
* Hobart remains the least affordable city based on the average rental households of each city.
* Greater Perth has hit its lowest point since 2016.
* Greater Brisbane has hit a historic low point of affordability.
* Regional areas have been hit harder than capital cities.
* Flood-affected towns have seen sharp declines in affordability, with affordability dropping 10 per cent over 12 months in Lismore and 14 per cent in Bellingen.
* For a single person on JobSeeker, Canberra and Greater Sydney are the least affordable capital cities.
* A single person on JobSeeker would have paid more than 115 per cent of their income on rent if living in Greater Sydney or the ACT.
* A single pensioner living in either Sydney or Canberra would have to spend around 70 per cent of their income on rent.
(Australian Associated Press)