Gold Coast rental crisis: Crippling rents force struggling families to leave city

BATTLING Gold Coast families are being told to leave the city to escape increasing rents, with new data revealing just how unaffordable the property market has become. SEE SUBURB-BY-SUBURB PRICE GUIDE.

GOLD Coast charities are telling struggling families to consider leaving the city to escape crippling rents.

All but a few suburbs across the region have been listed as moderately to severely unaffordable as the city’s weekly median rent price touches $510.

GOLD COAST HOUSE PRICE RECORDS SMASHED

New data reveals housing in many Gold Coast suburbs are now unaffordable.

MOST POPULATED SUBURBS ON THE GOLD COAST

Rent has increased on average 7 per cent in the past two years. In some suburbs it has gone up 25 per cent.

According to the latest Affordability Index (RAI) report, Ormeau Hills, Luscombe and Yatala were the only areas found a to sit in the “acceptable” price range for renters.

The biannual report by SGS Economics and Planning compared 2017 rental prices to the

median income of the average rental household ($74,900 per annum).

Hope Island and Helensvale topped the list as “severely unaffordable” while beachside suburbs from Broadbeach to Currumbin were classed as “unaffordable”.

GOLD COAST OFFICE VACANCIES AT 10-YEAR LOW

The financial situation has become so dire Reverend Jon Brook of St John’s said people were being encouraged to relocate to regional Queensland in order to afford accommodation.

“But it’s difficult as they are connected with medical support here, so lots of people are reluctant to do that,” he said.

“The Gold Coast in many ways is really out of reach for low income earners, that’s just the reality. (Lack of affordable rentals) would be the number one problem.”

He said every month outreach services were told how many affordable houses were available from Department of Housing in the area — which was in the single figures.

“They only get a look in if they’re willing to share,” he said.

“We just need more accommodation, particularly affordable accommodation.”

HARDEST GOLD COAST SUBURB TO BUY A HOUSE IN

How the Cost fares according to the data. Source: SGS Economics & Planning.

Corelogic data reveals average rent prices in some suburbs on the Gold Coast skyrocketed 25 per cent in the past two years. In comparison, Australian Bureau of Statistics figures show wages stagnated at about 2.5 per cent in the past five years.

Jacobs Well experienced the most significant price rise in rent for houses, jumping from $380 to $475.

Surfers Paradise rents were up 23 per cent from $620 to $765 and Coolangatta houses spiked 22 per cent from $450 to $550.

On average, Gold Coast rent prices are $510 a week, up from $489 two years ago.

GET A NEW TABLET WHEN YOU SUBSCRIBE TO THE GOLD COAST BULLETIN

SGS Senior Senior Associate and Partner Ellen Witte said the Gold and Sunshine coasts were two of the most costly in regional Queensland.

“I think the reason is they are both increasingly important population centres and when you factor the tourism sector and the unknown role of Airbnb, affordability is impacted,” Ms Witte said.

Those who spend 25 per cent of their income or less on rent were considered to be sitting in a good financial situation, she said.

“When a household starts to pay 30 per cent of their income and more on rent they are considered to be in rental stress.

“This leaves households with limited opportunity to meet their other primary needs, like transport to and from work, food and other utilities.

“While we have seen regional data show affordability for greater Brisbane has improved, low income households and regional areas do not keep pace,” she said.

Andrew Henderson chair of the Real Estate Institute of Queensland Gold Coast Zone: Jerad Williams

For Andrew Henderson, chair of the Real Estate Institute of Queensland Gold Coast Zone, a decreased supply of affordable rentals is apparent.

“I suppose it is getting too unaffordable,” he said. “A lot of the purchases are owner-occupiers, which has decreased the pool of availability.

“Then your supply and demand puts upward pressure on pricing.

Mr Henderson said the Commonwealth Games had also affected rentals and was expected to ease.

“Before the Commonwealth Games I felt sorry for a lot of tenants, where there was no supply but heavy demand. The is tide is turning. It is not in tenants’ favour but there are opportunities to find rentals at the $500 mark,” he said.

“Where you are going to find it cheaper the further you move from beaches and infrastructure.”

The SGC Rental Affordability Index 2018 revealed the Gold Coast to be an expensive area for the average renter.

DESPERATE HUNT FOR A HOME

CHRIS Newton was made redundant after a work injury, so moved to the Gold Coast.

But he quickly found that affording a “cheap’’ rental property was not going to be easy, even on a pension.

“I had a payout but I still could not afford a rental place even if I paid 12 months in advance,” he said, adding property managers insisted tenants have a secure job.

Renter Christopher Newton of Labrador. Picture: Mike Batterham

“I had a look at a fair few places — hotels, caravan parks, private rentals.

“I could afford it then but they were worried I couldn’t afford rent after that time. I had to pay up to $200 a night to stay in hotels and it ate my money up in five months.”

Mr Newton said because of ongoing medical problems he was unable to work for long periods, which made finding a permanent job very difficult.

He ended up living on the streets for months, until the St John’s Drop-In crisis centre managed to place him in temporary accommodation.

Then, by a stroke of “very” good luck, he managed to secure a property through the National Rental Affordability Scheme — a one-bedroom unit at Labrador where he has lived for the past three years.

Now on a pension, Mr Newton said it meant 25 per cent of his income was automatically deducted as rent. He said if he did not have the NRAS property, he would not be able to afford to rent on the Gold Coast.