Rental Affordability

Rental Affordability: Housing is already unaffordable in Australia.

Australian Rental Affordability, it is probably not a surprise that Sydney is the least affordable rental market in the nation. Yet at 41%, Sydney renters are 24% worse off than their Southern neighbours in Melbourne. Is this sustainable?

According to NHFIC’s State of the Housing Market report, released this month, Australia will have a housing shortage in excess of approx. 125,000 homes by 2025.

And just last week, the Treasurer announced a further 650,000 people entering the country in the next two years.

Will rent expenditure at 41% of income look cheap one day soon?

Read further about how Australian rental growth is tracking and the ongoing nature of rental affordability.

 

Source: Franklin St. Analysis, Australian Bureau of Statistics Employee Earnings (Aug 2022), SQM Research Capital Cities Rents (All Units).
Date: April 2023