Report reveals Australian suburbs where renters are most under housing stress

WHEN it comes to renting, the average wage doesn’t stretch far with a new report revealing Australia’s most, and least, affordable suburbs to live in.

Rents increase in West Gosford

RENTERS on average wages are being forced out of Australia’s inner cities and are facing housing stress, according to a new report released today.

But while rental affordability is an issue in all major centres, the problem is most acute in Sydney where someone earning the national average would have to shell out almost 90 per cent of their income to live in the most expensive suburbs.

According to Australia’s first Rental Affordability Index, suburbs once considered to be inexpensive are now out of reach to many renters. With average households spending 28 per cent of their wage packets, Sydneysiders were under the most stress nationally, with people living in Perth and Brisbane spending the smallest proportion of their income on rent.

The situation is more dire for people on low incomes, with families earning less than $500 a week having to spend 65 per cent of their wages in NSW and 59 per cent in South Australia to rent an average-priced property.

The report, produced by Community Sector Banking, listed the most and least affordable suburbs across Australia’s major urban centres. It found that the exclusive Sydney eastern suburb of Darling Point was the most expensive, while Bateman in Perth and Victoria’s Melton were easiest on the pocket.

SYDNEY

The report found rents were expensive across the board in NSW and rents for low-income households were “extremely unaffordable”.

Mount Druitt in western Sydney may have been the subject of SBS’s controversial Struggle Street documentary, but if you’re on an average wage it’s anything but a struggle to pay the rent, taking up just 21 per cent of your wage. Nevertheless, this is still substantially more than the most affordable areas of other capitals.

In contrast, if you want to live it up with the famous residents of the harbourside suburb of Darling Point, there won’t be much left over for Champagne and oysters after you’ve sacrificed 87 per cent of your weekly wage on rent.

The most expensive neighbourhoods were crowded around the inner city and north shore.

Mount Druitt, in Western Sydney, is one of the city’s most affordable suburbs.

However, even areas previously considered affordable, such as Lidcombe, Lakemba and Dee Why, are now unaffordable.

Top 5 most affordable suburbs in Sydney basin

1. Black Springs, near the Blue Mountains

2. Mount Druitt

3. Bluehaven, central coast

4. Lake Haven, central coast

5. Silverdale

Top 5 least affordable suburbs in Sydney Basin

1. Darling Point

2. Kirribilli

3. Woollahra

4. The Rocks

5. Paddington

The views of Sydney Harbour from Darling Point don’t come cheap.

MELBOURNE

The disparity between rents in Melbourne was less extreme than in Sydney with the Victorian capital one of the most affordable overall. Nevertheless, while rents in Melton, west of the city, will only set you back 17 per cent of the average wage, in Albert Park almost half your pay cheque would be gone on accommodation. The report noted rents were particularly unaffordable for those on low incomes while housing stress hot spots were focused on the inner city and suburbs to the east and south east of the CBD. Rents in the north and west were more affordable.

Living close to Melbourne’s Albert Park will take up almost half the average wage in rental costs. Picture: Mark Wilson

Top 5 most affordable suburbs in and around Melbourne

1. Caldermeade

2. Melton South

3. Melton

4. Albion

5. Seville East

Top 5 least affordable suburbs in and around Melbourne

1. Portsea

2. Albert Park

3. Beaumaris

4. Brighton

5. Seaholme

BRISBANE

While Brisbane is affordable overall, many of the most expensive suburbs are located within 5km of the city centre. But the prize for the most out-of-reach neighbourhood goes to Burbank in the city’s southeast, with rents eating up 37 per cent of average incomes. But the CBD itself and Spring Hill will still hit you in the hip pocket, as will Bulimba and Murarrie. Bang for buck can be found in Dinmore, near Ipswich, and Coochiemudlo Island.

Top 5 most affordable suburbs in and around Brisbane

1. Coochiemudlo Island

2. Aratula, Scenic Rim

3. Dinmore

4. Allandale

5. Kingston, Woodridge

Top 5 least affordable suburbs in and around Brisbane

1. Burbank

2. Samford Village

3. Fig Tree Pocket, Kenmore

4. Brisbane CBD, Spring Hill

5. Albany Creek

PERTH

The slowdown of the mining boom has boosted Western Australia’s affordability, with average households spending less than 25 per cent of their wages on rent, well below the level where housing stress would kick in. But the extremes between most and least expensive suburbs was some of the most extreme outside Sydney. More than half the average wage would go on rent in City Beach but Bateman, in the city’s south, would set you back just 12 per cent. Areas to the west of the CBD had the most unaffordable rents.

It might be bustling but you’ll struggle to pay the rent in Fremantle, Perth, if you’re on an average wage.

Top 5 most affordable suburbs in and around Perth

1. Bateman

2. Rottnest Island

3. Nambeelup

4. Wooroloo

5. Coolup

Top 5 least affordable suburbs in and around Perth

1. City Beach

2. Claremont

3. Mahogany Creek

4. Peppermint Grove, Cottesloe

5. North Fremantle

ADELAIDE

Rental affordability varies greatly across the South Australian capital, with the northeast and southeast out of reach for many. Cudlee Creek would be a particular struggle for an average earner, chewing up 64 per cent of their wages, with inner city areas not far behind. Most affordable are suburbs in the northern concerted around Gawler.

Top 5 most affordable suburbs in and around Adelaide

1. Davoren Park

2. Angle Vale

3. Gawler

4. Elizabeth

5. Forreston, Gumeracha

Top 5 least affordable suburbs in and around Adelaide

1. Cuddle Creek

2. Aldgate

3. Oakbank

4. Cleland

5. Carey Gully

TASMANIA

Tasmania wasn’t immune from housing stress either but the extremes of rent were far less than in other capitals. Nevertheless, Clifton Beach, Cremorne and Old Beach would take up a third of a standard wage earner’s income while Collinsvale and Clarendon Vale would give you coin to spare.

HAMMERED

Adrian Pisarski, executive officer of low-income housing organisation National Shelter, said high rents were dividing Australia.

“It shows what we have known anecdotally for far too long: low income households are being hammered beyond belief [and] moderate income working households are very hard up and have little disposable income,” he said.

According to the Australian Bureau of Statistics, the average individual weekly wage is $1485 with those spending more than 30 per cent of their income on rent considered to be under housing stress. Renters make up more than a quarter of those occupying homes.

Speaking at the National Housing Conference last month, Dr Ian Winter of the Australian Housing and Urban Research Institute said housing affordability, for both renters and those paying back a mortgage, was an increasing problem.

“More and more first homebuyers just can’t get in and in the private rental markets, lower income earners, in particular, have got very significant affordability problems. There’s just not enough affordable rental accommodation around,” Dr Winter told ABC.