Home renters are some of Australia’s unhappiest people, according to Finder’s Consumer Sentiment Tracker

Mortgage stress can be a big concern for homeowners, but renters are struggling even more.

A new survey suggests that renters are some of Australia’s unhappiest people.

The survey of over 30,000 respondents, conducted by Finder’s Consumer Sentiment Tracker, analysed the financial positions of renters and homeowners.

It found that renters reported lower levels of happiness and more severe levels of money stress compared to homeowners.

Renters reported a lower level of happiness and higher levels of stress compared to homeowners.

26 per cent of renters admitted they were ‘extremely stressed’ with their financial situation, compared to 15 per cent of homeowners.

Renters were also statistically less likely to be happy, with only 69 per cent reporting positively compared to the 83 per cent of homeowners.

According to Finder Senior Editor Sarah Megginson, homeowners save nearly twice as much money per month ($989) as renters ($516).

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Home owners save nearly twice as much money per month compared to renters.

“We hear a lot about mortgage stress but our research shows renters are struggling the most,” Ms Megginson said.

“It’s not that renting itself makes people stressed or unhappy. Owning a home is correlated with a higher income and cash position, which leads to higher rates of happiness and financial wellbeing to a point.”

Renters took an average nine months to pay off their credit card debt, which is higher than the five months it took for homeowners.

Median rental prices have increased by an average of eight per cent across the major cities over the past year, with the highest prices being felt in Darwin, Perth and Adelaide.

Younger buyers are continuing to face issues entering the housing market.

Ms Megginson believes the data is worrying for younger buyers looking to get into the housing market.

“Having a poor financial position means struggling to pay for bills today, but it also prevents you from investing in your future. Buying a home means saving a good chunk of money for the deposit and being able to make your mortgage repayments,” Ms Megginson said.

“Compared to owning a home, renting gives you no equity and no asset at the end of it – which can lead to growing wealth inequality over time.”

Cheaper suburbs and housemates can make the renting experience easier on people’s wallets.

It’s not all bad news for renters, they can still look at the many opportunities available on the property market.

Moving to a cheaper suburb and living with housemates are just some ways renters can bring down the cost of living.

“If you have enough saved up, you could also look at ‘rentvesting’ renting a home for yourself while owning a more affordable investment property,” Ms Megginson said.

“This can be a really meaningful way to save for your future home, while earning rental income on a property that is perhaps smaller or further from the city than you would want for yourself.”
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Originally published as Home renters are some of Australia’s unhappiest people, according to Finder’s Consumer Sentiment Tracker