‘Deep crisis’: how rental squeeze is hitting your suburb

It’s been labelled our version of the Hunger Games – the mad battle across the country for rental properties. This is how every Australian suburb is faring.

It’s been labelled our version of the Hunger Games – the mad battle across the country for rental properties, with an many suburbs wallowing in vacancy rates of around 1 per cent.

According to the latest report from property data firm Suburbtrends, a lack of stock, rent increases, vacancy rates and affordability are all combining to create a dire situation for many renters.

With experts saying the crisis is having a significant impact on household budgets and increasing the risks of homelessness.

Our Rental Pain Index below illustrates how each Aussie suburb is faring.

Rents are up across much of the country. Picture: NCA NewsWire / Naomi Jellicoe

And while some are doing better than others in terms of availability, the overall effect of the great rental squeeze is to force rents higher and exacerbate the cost of living issue for many households.

“Generally, 50 is the value for the pain score where I see things getting pretty bad for renters,” Suburbtrends founder Kent Lardner said.

“Queensland is the hardest-hit state, with 86 suburb groups reporting a Rental Pain Index of 75 or higher. NSW follows with 62.

“South Australia and Western Australia each have 39 high-pain suburb groups, which is also a significant concern.

“Victoria and Tasmania show fewer, with 22 and six high-pain suburb groups respectively. “These figures reveal the severity and breadth of rental pressure across Australia, with Queensland and New South Wales standing out as particularly challenging markets for renters.”

The Index rates rental pain out of 100 using metrics including rent increases, stock on the market, vacancy rates and affordability.

Here is how each state is faring.

MELBOURNE AND VICTORIA

Tenants are facing pain in almost every corner of the Melbourne rental market. New findings from real estate research company Suburbtrends shows 276 of the 337 suburbs assessed across the city were “not ideal” for tenants.

Suburbtrends founder Kent Lardner said at 26 per cent, Victoria’s average percentage of income spent on rent was lower than the national average.

But it was only just below 30 per cent, the standard definition of housing stress, and “severely unaffordable”.

“It’s a good thing for now, (but) equally it leaves the door open for further rent increases,” Mr Lardner said.

More on Melbourne and Victoria

Aussies households are doing it tough due to cost of living pressures. Picture: Josie Hayden

SYDNEY AND NSW

The Suburbstrends report reveals one if four Sydneysiders is struggling more than ever.

According to the data, 43 suburb groups across Sydney received ratings above 75 on the Rental Pain Index which signals dire circumstances.

“One quarter (24 per cent) of Sydney is in deep crisis,” Suburbtrends founder Kent Lardner said.

The data reveals renters are suffering most around inner southwest Sydney.

“If you’re dipping into your pocket spending 35 per cent or more of your household income on rent, you don’t have too much leftover for clothes, kids sports or anything in between,” Suburbtrends founder Kent Lardner said.

“When we get to a point where we are trying to draw blood from stone, the pattern we are seeing is that it becomes very unaffordable. It’s really sad, Australia is failing.”

More on Sydney and NSW

Brisbane is another city with a challenging rental market. Picture: Lyndon Mechielsen/Courier Mail

BRISBANE AND QUEENSLAND

Tenants in nearly 400 Queensland suburbs are officially ‘rent stressed’, with the exclusive new data showing renters are being forced to fork out up to 120 per cent more now than they were just 12 months ago.

The inaugural Rental Pain Index by Suburbtrends, apaints a dire picture of the state’s rental market with a whopping 383 suburbs recording a rental pain index of 50 or above.

More on Brisbane and Queensland

ADELAIDE AND SOUTH AUSTRALIA

Tenants in all but 15 South Australian suburbs and towns are experiencing severe rent stress, with new data showing some are forking out more than 40 per cent of their income to pay rent.

Suburbtrends paints a grim picture for SA.

Of the 157 SA areas recorded in the analysis, 142 had a rent pain score of 50 or more.

“Adelaide, long considered a sanctuary of affordability in both the rental and buying markets, seems to be undergoing a seismic shift,” Mr Lardner said.

More on Adelaide and South Australia

Originally published as ‘Deep crisis’: how rental squeeze is hitting your suburb