Independent economist Tarric Brooker’s analysis of data from the most recent Census revealed a significant increase in the proportion of Australian households residing in rented housing over the 20 years leading up to 2021:
As shown above, households between the ages of 25 and 64 have been the main drivers of this increase in renting households.
The latest Household, Income and Labour Dynamics in Australia (HILDA) survey also revealed that young adults in Australia are delaying their traditional transition to adulthood and spending more time at home with their parents.
Source: HILDA 2023
As shown in the table above, just over half of young men (54%) and 47% of young women (18-29 years old) continue to live with their parents.
PropTrack’s rental affordability index has also collapsed to a record low:
Whereas the proportion of income used to service rent has risen to an all-time high:
On Tuesday, Dr Cameron Murray from Fresh Economic Thinking posted the below chart from CEDA showing that “Australian renters are more likely to be forced to move by their landlord than choose to move for work”:
The data presented in the chart above is from 2020. No doubt the situation has gotten much worse given the hyperinflation in rents amid record net overseas migration.
This surge in rents has seen many Australians forced to live in insecure housing arrangements, including homelessness.
Rental tenancy in Australia is notoriously insecure, with one year leases being the norm.
Importing large numbers of renters via net overseas migration amid a supply-constrained market will only make the situation worse.
