Affordability plunges to record lows for renters

RENTAL affordability has plunged to record lows, according to an annual affordability index.

The 10th National Shelter-SGS Economics and Planning Rental Affordability Index paints an increasingly grim picture.

A “critically unaffordable” category had to be added in 2024 to highlight households that would now have to pay 75% of their income or more on rent.

For single JobSeekers and part-time workers receiving a parenting payment, every city and rest of state area is now classed as severely unaffordable or worse.

There is also nowhere affordable for pensioners and only regional South Australia is affordable for a single hospitality worker.

Sydney, Melbourne, Brisbane, Perth and Adelaide all recorded their worst affordability scores since the index began in 2014.

The rest of NSW, VIC, QLD and SA also hit record lows. Rental affordability improved slightly in the ACT and Tasmania.

National Shelter spokesperson John Engeler said: “Renters across the entire country are under severe pressure as rent rises continue to outpace income growth amid historically low vacancy rates.

“The situation is especially serious for low-income renters who are increasingly forced to rent privately due to the declining availability of social and affordable housing.

“A single pensioner would have to spend 86 per cent of their income to rent a median one-bedroom apartment in Sydney.”

In the past 12 months, rental affordability has declined 13 per cent in Perth, eight per cent in Adelaide, six per cent in Melbourne, five per cent in Sydney, and four per cent in Brisbane.

Perth is now the least affordable capital city, with median weekly rent of $629 taking up 31 per cent of median income, closely followed by Sydney where median rent of $720 is 30 per cent of median income, meeting the threshold for rental stress.

Ellen Witte Principal at SGS Economics & Planning said: “Huge swathes of Australia are now unaffordable to even median income renters.

“With rental affordability deteriorating this rapidly, rents are now “critically unaffordable” for pensioners, JobSeekers and some single parents.”