Rental affordability worsens amid tightening market


Suburbtrends has reported that 51% of the 2,809 house markets it assessed require families to spend more than 30% of their household income on rent, due to dwindling rental supply. It further found that there are 164 suburbs where families have to spend over 50% of their household income to pay the rent on an average three-bedroom house.

Suburbtrends director Kent Lardner says regions have been hit the hardest by rental shortages, a point also acknowledged by SQM Research MD Louis Christopher:

“The rental shortage has hit regions the hardest. However, greater Darwin, the ACT, greater Hobart and to a lesser extent greater Adelaide are all feeling extreme pressure with very low vacancy rates and rising rents,” said Suburbtrends director Kent Lardner…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.