‘Disturbing reality’: Townsville rent pressure squeezes hard

New research into rent price rises and affordability paints a ‘disturbing reality’, with one Townsville region suburb recording a shockingly high increase. SEE THE LIST

Rental availability has fallen through the floor as rents jump 10 per cent in areas across Townsville over the past 12 months.

Anyone thinking the island life across on Magnetic Island would be the cure to housing stress should think again as rents have gone up 26 per cent in the past year.

Comprehensive nationwide data published by analyst Kent Lardner has painted a “disturbing reality”.

There are vacancy rates under one per cent in Aitkenvale, Condon, Rasmussen, Kirwan, Mount Louisa, Magnetic Island, Annandale, Hermit Park, Kelso, Rosslea, Gulliver, Currajong and Vincent.

”Vacancy rates under one per cent in most of these suburbs show the immense strain on housing availability,” Mr Lardner said.

Townsville’s least affordable suburbs for renters are Condon, Rasmussen and Aitkenvale.

“Our index is more than just numbers; it’s a call to action,” he said.

“Policymakers and stakeholders need to acknowledge this growing crisis. The relentless climb in rent and plummeting vacancy rates are not just statistics but indicators of a quality of life that is rapidly deteriorating for Australian renters.”

Mark Molachino, deputy mayor for Townsville City Council, said they are pulling every lever they can for housing, including with the affordable housing action plan.

“North Rail Yards is one of our main focuses, which is why we’ve applied to the HIF to offset costs to build in the North,” Cr Molachino said.

“We need help from the state government to get it off the ground.”

Suburb Trends founder Kent Lardner says disturbing rental affordability data should be a call to action for policymakers and stakeholders.

Housing constraints are also affecting our armed services, according to Cr Molachino, with more money needed to be spent by Defence Housing Australia (DHA).

“We need DHA to step up and start investing in housing in Townsville. It’s impacting on private rentals as well.

“I have spoken to Defence members who have advised me when posted into town, they live in motels for two to three months because they can’t be provided with housing,” Cr Molachino said.

A department spokesperson said the organisation provided “adequate and suitable” housing for Defence Force families.

“DHA has a proud history of supporting Defence personnel in Townsville and it takes its responsibility to the region seriously, maintaining a significant portfolio of housing in the Townsville area.”

The department did not determine rental market prices and was focused on the needs of Defence Force members, the spokesperson said.

Mr Lardner’s research found there were no Townsville suburbs where average rents were more than 30 per cent of the average household income. But in the Far North, and towards Mackay/Bowen that’s not the case.

In Cairns at Manoora, Manunda, Woree, Yorkeys Knob and Trinity Beach rents cost more than 30 per cent of household income.

That’s the same in North Mackay, Mackay, Bowen and Atherton for houses.

Mr Lardner considers rents at 35 per cent of household income as unsustainable.

The analyst has worked in valuations in the United States and China, and co-founded PriceFinder, which was sold to the Domain Group.

He has dubbed this latest report the ‘Rental Pain Index’, and found Western Australia as the harshest state for renters.

A lone northern Queensland area took a top-25 spot in Queensland’s rental pain index: Westcourt-Bungalow in Cairns where the median unit costs $370 a week. It was No. 12 in the state’s pain index.

The Sunshine Coast, Meridian Plains-Little Mountain area is Queensland’s least affordable and third least affordable in the country.

Originally published as ‘Disturbing reality’: Townsville rent pressure squeezes hard