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It’s official: people on average incomes cannot afford to rent on the northern beaches

RENTAL CRISIS: Every northern beaches suburb is now officially unaffordable for renters on an average household income, while low income households in other parts of Sydney are spending up to 94 per cent of their income on rent.

A property in The Circle, Narraweena where the median rent is $795 a week. Picture: NSW Real Estate
A property in The Circle, Narraweena where the median rent is $795 a week. Picture: NSW Real Estate

EVERY northern beaches suburb is now officially unaffordable for renters on an average household income, a new national report has found.

Some suburbs are worse than others, with property data revealing a dozen suburbs where weekly house rents account for 50 per cent or more of its median household income.

And it is not just the more expensive suburbs that are affected, with traditionally lower-cost areas also falling into that category.

The suburbs include Balgowlah, Bayview, Clareville, Curl Curl, Dee Why, Fairlight, Freshwater, Manly, Manly Vale, Narrabeen, Narraweena and Palm Beach.

The median weekly rent in Cromer is $883. Picture: NSW Real Estate
The median weekly rent in Cromer is $883. Picture: NSW Real Estate

But the northern beaches is not alone. The May Rental Affordability Index released by National Shelter, Community Sector Banking and SGS Economics and Planning this week, showed some low income households in other parts of Sydney were spending up to 94 per cent of their income on rent.

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National Shelter executive officer Adrian Pisarski — also a former resident of the northern beaches — said rental affordability had been a problem on the peninsula for decades.

“There’s nothing, absolutely nothing — even at household income of $100,000, which is more than the average Sydney (household) income ($96,000),” he said.

“There’s nothing on the peninsula and that’s even for a two-bedroom unit.”

Rents in Avalon Beach have reached an average of $965 a week. Picture: NSW Real Estate
Rents in Avalon Beach have reached an average of $965 a week. Picture: NSW Real Estate

Mr Pisarski said while the northern beaches was faring better when it came to affordability than some other parts of Sydney, like the CBD, the eastern suburbs and the north shore, the issue would have a significant impact on the ability for businesses to attract and retain low-income workers.

These include hospitality, tourism, retail and childcare.

“Businesses are really going to suffer,” he said. “It’s not just a welfare issue, it affects the workings of the economy.

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“We know this has been a problem all over Sydney. We refer to Sydney as a basket case really in terms of housing affordability.”

The northern beaches hasn’t always been unaffordable, Mr Pisarski said.

“Sixty years ago the northern beaches started out as an affordable area for working people,” he said.

A home on busy Warringah Rd, Forestville where median rents are now $880 a week. Picture: NSW REAL ESTATE
A home on busy Warringah Rd, Forestville where median rents are now $880 a week. Picture: NSW REAL ESTATE

“It’s now become a lot more exclusive, and a very desirable place to live.”

He said a national housing strategy was urgently needed to address affordability issues, and it would need bipartisan support. State and Federal governments would need to work together to address issues like stamp duty, capital gains and land taxes, and the redevelopment of existing public housing estates.

There also needed to be more investment in social and low-cost housing.

“Nothing short of a national housing strategy can do the job,” Mr Pisarski said.

“It’s taken us 25 years to dig this great big hole, it’s likely to take 10 to 15 years to find a path out of it.”

Supply is also an issue, especially for families needing an affordable stand-alone house.

According to realestate.com.au, there are currently more than 1000 properties available to rent on the northern beaches. Of these, less than 280 are three-bedroom houses, and less than 50 of those have a weekly asking rent of $800 or less.

Rental properties in North Manly are asking a weekly rent of more than $1000. Picture: NSW REAL ESTATE
Rental properties in North Manly are asking a weekly rent of more than $1000. Picture: NSW REAL ESTATE

Market Trends data from CoreLogic and the Australian Bureau of Statistics Census data provides individual rental and income information on all northern beaches suburbs. This data paints a worrying picture for families on low or average incomes wanting to rent a house on the peninsula.

CHECK RENTALS IN YOUR SUBURB:

The suburbs with an asterisk are those where the weekly rent is 50 per cent or more of the median household weekly income):

Allambie Heights: $990 (median asking weekly rent for a house); $2229 (median household weekly income)

Avalon Beach: $965; $2137

*Balgowlah: $1295; $2261

Balgowlah Heights: $1665; $3726

*Bayview: $1100; $1476

Beacon Hill: $885; $2369

Belrose: $1050; $2117

Bilgola Plateau: $898; $2399

Brookvale: $750; $1822

Church Point: $1100; $2590

*Clareville: $1250; $2250

Clontarf: $1598; $3744

Collaroy: $1045; $2115

Collaroy Plateau: $875; $2274

Cromer: $883; $1998

*Curl Curl: $1350; $2693

Davidson: $850; $2630

*Dee Why: $895; $1716

Duffys Forest: n.a.; $3274

Elanora Heights: $928; $2461

*Fairlight: $1350; $2620

Forestville: $880; $2151

Frenchs Forest: $880; $2514

*Freshwater: $1400; $2268

Ingleside: n.a; $2170

Killarney Heights: $1250; $2590

*Manly: $1448; $2449

*Manly Vale: $1000; $1959

Mona Vale: $923; $2001

*Narrabeen: $950; $1582

*Narraweena: $795; $1577

Newport: $975; $2066

North Balgowlah: $1250; $3119

North Curl Curl: $1200; $2768

North Manly: $1013; $2571

North Narrabeen: $800; $2177

Oxford Falls: n.a.; $2250

*Palm Beach: $1300; $2111

Queenscliff: n.a.; $2348

Scotland Island: n.a.; $1800

Seaforth: $1400; $3384

Terrey Hills: $925; $2391

Warriewood: $1000; $2160

Whale Beach: n.a.; $2250

Wheeler Heights: $900; $2274

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Original URL: https://www.dailytelegraph.com.au/newslocal/manly-daily/its-official-people-on-average-incomes-cannot-afford-to-rent-on-the-northern-beaches/news-story/2ffc717199a20cd1852838bb4b0c855c