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‘Unprecedented’: True scale of Aussie rental pain revealed as Qld, SA suburbs face ‘extreme’ hardships

The true scale of “unprecedented” rental pain facing Aussies has been revealed, with two states crossing into “extreme” hardship territory.

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Aussie tenants are facing “unprecedented” levels of rental stress amid a housing affordability and vacancy rate crisis, with over 58 per cent of suburbs in two states crossing into “extreme” rental hardship.

Newly released data compiled by property research group Suburbtrends has revealed the dire state of renting in Queensland and New South Wales as renters battle a combination of rising rents, high housing prices, low vacancy rates and an ongoing cost-of-living crisis.

Queensland is the most-affected state, with the majority of the top 25 worst suburb groups for rental pain being Durack, Logan Central and Deception Bay.

A new report from property research group Suburbtrends has revealed the Aussie suburbs facing the most rental pain. Picture: NCA NewsWire / Max Mason-Hubers
A new report from property research group Suburbtrends has revealed the Aussie suburbs facing the most rental pain. Picture: NCA NewsWire / Max Mason-Hubers

The three areas have experienced significant average 12-month rental increases, ranging from 7 to 15 per cent, coupled with the high percentage of median household income dedicated to rent.

That figure reaches as high as 57 per cent in Mermaid Waters, on the Gold Coast.

Suburbtrends founder Kent Lardner has called for immediate change to fix the “immense” pressure being heaped on Aussie renters.

He said the January report served as a “crucial” indicator of the hardships faced by renters.

“The data calls for urgent, multifaceted policy solutions to address the soaring rental costs and limited housing availability,” Mr Lardner said.

“It’s time to turn these insights into action.

“This is not an isolated issue; it’s a nationwide problem that requires immediate and comprehensive policy action.”

A table explaining the suburbs across the nation which are experiencing the most rental pain. Picture: Supplied
A table explaining the suburbs across the nation which are experiencing the most rental pain. Picture: Supplied

Suburbtrends’ Rental Pain Index (RPI) for January factors in a suburb’s rent change, advertised rentals, vacancy rate and change and rental affordability to generate a score between 1 and 100 – 100 indicating maximum rental stress.

Of the 12 suburbs which scored 100, eight are in Queensland.

58 per cent of suburbs in both Queensland and South Australia scored higher than 75 on the Index, Mr Lardner said.

Durack and Logan Central in the Sunshine State were the top two suburbs experiencing rental pain, while Warilla in NSW followed in third place.

The report also found renters earning over $2255 a week faced an average 12-month increase of 10.8 per cent – 25.3 per cent of their income going towards rent.

“Their RPI stands at 68, suggesting moderate rental stress,” the report states.

“The most striking statistics emerge from the lowest income group, earning below $1,447 per week.

Despite facing a smaller rental increase of 8.2 per cent, a significant 33.9 per cent of their income is spent on rent, reflecting the acute impact of housing costs on low-income earners.

“Lower-income groups, despite smaller rental increases, face disproportionately high rental burdens, highlighting the need for targeted housing affordability measures,” the report continues.

58 per cent of suburbs in Queensland and South Australia reported experiencing high rental pain levels. Picture: NCA NewsWire / Max Mason-Hubers
58 per cent of suburbs in Queensland and South Australia reported experiencing high rental pain levels. Picture: NCA NewsWire / Max Mason-Hubers

The report follows Prime Minister Anthony Albanese announcing a $206m cost-of-living lifeline to struggling households in NSW, opening up new funding measures to social housing and access to solar power.

Priority will be given to the older, least energy-efficient properties, and houses in locations that experience extreme heat and cold.

“Saving energy means saving money, which is why we’re continuing to deliver cost of living relief for families that need it most without adding to inflation,” Mr Albanese said.

Original URL: https://www.news.com.au/finance/real-estate/renting/unprecedented-true-scale-of-aussie-rental-pain-revealed-as-qld-sa-suburbs-face-extreme-hardships/news-story/c835dcae5cbaaa22746d3c7636963d85