‘Priced out’: warning to landlords
Renters warn landlords they fear that one more rental rise will max them out of the market entirely, new research reveals.
Renters warn landlords that more rental rises will max them out of the market entirely, new research has revealed.
As renters face the largest annual rise in rents in 15 years, new data shows three in four renters are concerned about how they are going to afford the cost of rent in the next 12 months.
The research from financial comparison site Mozo.com.au showed 40 per cent of renters fear they will be priced out of the market entirely.
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The Consumer Price Index (CPI) for the September quarter showed rental prices are rising at a level faster than they have in close to fifteen years.
With renters accounting for more than 30 per cent of Australians, Mozo.com revealed that 60 per cent of renters had received a price increase in the last 12 months, with one in three coughing up more than 40 per cent of their weekly income – a situation known as ‘rental stress’.
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The change in rental costs for Sydney renters was 8.6 per cent higher than the previous year.
Rachel Wastell, Mozo’s money expert said it wasn’t that rents were increasing, but the amount and rate they were increasing at.
“It’s driving this feeling of fear within the rental market,” she said.
Some respondents revealed they were considering moving overseas to escape the Aussie rental market.
“There’s also the added stress for those who were once hopeful to get on the property ladder, and now realise that they can’t afford it,”
One in four respondents said they were not sure what they would do if their rent was to rise. Ms Wastell said that renters should look to cut other home costs, to leave breathing room for rental increases.
“There’s a huge opportunity for renters to start cutting costs across all their
personal finance products, rather than burying their head in the sand and trying to
ignore it,”
“You can often save hundreds of dollars a year by shopping around for the best deal on financial products, and you can use those savings to cover rising costs,”
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Originally published as ‘Priced out’: warning to landlords