The latest Suburbtrends “Rental Pain Index” for August highlighted the ongoing rental crisis in Australia.
With rising rental prices and a shortage of homes, urgent action is needed to alleviate the stress on renters nationwide, according to the report.
“The massive growth in house prices since in recent years has created a significant gap for most first-home buyers, making homeownership increasingly unattainable without familial financial support,” said Kent Lardner (pictured above), founder of Suburbtrends.
“Those stuck without such support are likely to remain trapped in the private rental market.
This month’s data signals a looming reckoning for the political class, who continue to adopt policies that continually drive up house prices.”
The data revealed alarming trends in Western Australia and Queensland, with rental pain indices at 82 and 83 respectively, and significant increases in South Australia and Victoria.
The national average also remains high, indicating widespread rental stress across the country.
“The risk of displacement and homelessness is on the rise, as evidenced by the increasing demand on specialist homelessness services,” Lardner said. “Immediate measures are needed to provide emergency accommodations and support for those at the brink of losing their homes or already homeless.”
“The real drivers of this problem are the huge disconnect between population growth and housing supply,” Lardner said. “Population growth and housing supply cannot be left as independent policies; they must be closely linked to ensure sustainable development. Without aligning these policies, the rental crisis will only worsen.”
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
