Suburbstrends rental report reveals one quarter of Sydney is in deep rental crisis
Skyrocketing rents and near zero vacancy rates are pushing many Sydneysiders to the brink of serious financial trouble, it has been revealed.
Property
Don't miss out on the headlines from Property. Followed categories will be added to My News.
The rental crisis has been likened to drawing “blood from stone”, as a new report reveals one in four Sydneysiders are struggling more than ever.
Experts say the crisis is having a significant impact on household budgets and increasing the risks of homelessness.
Latest data from Suburbtrends has revealed 43 suburb groups across Sydney received ratings above 75 on the Rental Pain Index which signals dire circumstances.
The Index rates rental pain out of 100 using metrics including rent increases, stock on the market, vacancy rates and affordability.
MORE: Star’s final act: giving his house to charity
Retail worker has 7 homes, $200k in super
“One quarter (24 per cent) of Sydney is in deep crisis,” Suburbtrends founder Kent Lardner said.
The data reveals renters are suffering most around inner southwest Sydney.
“Suburbs such as Bankstown – North, Punchbowl, and Lakemba experience high rental pain indices of 84 due to significant rental increases and low vacancy rates,” Mr Lardner said.
“If you’re dipping into your pocket spending 35 per cent or more of your household income on rent, you don’t have too much leftover for clothes, kids sports or anything in between.
“When we get to a point where we are trying to draw blood from stone, the pattern we are seeing is that it becomes very unaffordable. It’s really sad, Australia is failing.”
Mr Lardner said he heard examples of NSW high school families living out of their cars.
“These are people we know, this is everywhere,” he said. “It is having a flow on effect and crippling a lot of businesses.”
MORE: Roosters star’s ‘astronomical’ price for home
He said the issue of supply needed to be addressed immediately.
Tenants’ Union of NSW policy and advocacy manager Jemima Mowbray said the data wasn’t surprising with calls to the Tenants’ Advice Services around rent hikes increasing from 700 a year before the pandemic to 2500 over the past year.
Ms Mowbray said there had also been more than double the number of calls from renters about “no grounds” evictions.
“We’re seeing more and more renters experiencing rental stress,” she said.
“Rents are continuing to escalate, with many facing substantial increases in one go.
“This puts low income renters at particular risk in relation to eviction, and eviction into homelessness.
“People are telling us it’s a real struggle to find a new rental property if you have to move – it costs a lot, but many are simply not able to lock in a new property due to the fierce competition in the private rental market.”
Ms Mowbray said more and more people are being forced into difficult and precarious living situations.
“Renters shouldn’t be forced to spend large portions of their income on a roof over their heads,” she said. “Too many are spending too much on rent, with little left over to cover off on other basic necessities.
She said it was clear that clear fairer limits on rent increases are needed, as well as a more effective way to challenge rent increases.
MORE: Puzzling reason rental went up in flames
Top 10 Sydney suburbs luring first home buyers
Sydney Buyers Agent Michelle May said “horrendous rent increases” had seen many people feeling the pressure of getting into the market.
“I see the relief once they buy,” she said.
“Once you sign a contract it’s yours and you have that assurity that you don’t have to be at the behest of someone else.”
Ms May said many clients say high rents were prompting them to pay off a mortgage.
“In some people’s equations it does make sense to bite the bullet and buy something,” she said. “It’s not an easy equation though and getting more and more tricky with interest rates and other factors.”
Originally published as Suburbstrends rental report reveals one quarter of Sydney is in deep rental crisis
Inside Albo’s hot $1.9m home heading to auction
The PM could make around half a million dollars after selling his investment property this Saturday and benefiting from the contentious capital gains tax discount. See the video.
Huge change coming for Gold Coast’s biggest motel
One of the Gold Coast’s oldest motels, the largest of its kind, is set to undergo a dramatic change which would mean something quite different, if realised.