The Crisis of Affordable Rentals in Australia

The Crisis of Affordable Rentals in Australia

By: Nfinity Financials0 comments

As renting in Australia gets harder, finding cheap places to rent is becoming really tough. New information from PropTrack shows there are way fewer rentals for less than $400 a week. This is a big problem for renters all over the country.

Finding Affordable Rentals Gets Tougher

In April 2024, just 10.4% of rental homes in Australia were priced under $400 a week. That’s way down from 15.5% in April 2023 and a huge drop from 43.2% when the pandemic started. Things are especially tough in big cities, where only 5.9% of rentals are under $400 a week, down from 10.6% a year ago.

Sydney is hit hardest, with only 3.8% of its rental homes costing less than $400 a week. That’s way down from 22.7% in March 2020. Melbourne and Brisbane are facing similar situations. In Melbourne, just 7% of rentals are under $400, compared to 38.7% at the beginning of the pandemic. Similarly, Brisbane’s affordable rentals have decreased from 49.2% in March 2020 to 7.8% in April 2024.

Other cities are feeling the pinch too. In Adelaide, only 9.5% of rentals are under $400 a week, down from 59.0% in March 2020. Moreover, Perth’s affordable rental market has also shrunk a lot, with just 5.6% of properties under $400, compared to 61.5% at the start of the pandemic.

Rural Areas Affected Too

The problem isn’t just in cities. Even Rural Areas are Seeing Fewer Affordable Rentals. In rural New South Wales, only 21.5% of rentals are under $400 a week, down from 55.6% in March 2020. Similarly, in rural Victoria, it dropped from 73.4% to 28.8%. Similar things are happening in rural Western Australia and Queensland, where affordable rentals have fallen to 14.8% and 15.8%, respectively.

What Experts Say and What’s Next

Top economists at PropTrack, talk about the big issue. Vacancy rates are at almost their lowest, which means there’s a big demand but not enough new places to rent. This is tough for renters, especially those with lower incomes who can’t find anything they can afford. We really need more houses for rent, and fast.

Moreover, experts stress that we need to take real action to fix the housing shortage. If we don’t, the trend of fewer affordable rentals will keep going, making life even tougher for many renters in Australia.

Moving Forward

The numbers show a clear picture of how tough it is to find a rental in Australia right now. With affordable places getting harder to find, many renters are really feeling the financial squeeze. We urgently need policies and more houses to make sure everyone can afford a stable place to live.

As things keep changing, it’s crucial for policymakers and everyone involved to tackle this problem and find lasting solutions. This will bring relief to renters struggling in a tough market.

At Nfinity Financials, we’re here to help. Whether you’re renting and need advice or you’re a property owner wanting to make the most of your investment, our team is ready with expert guidance and custom financial plans. Together, we can make the rental market more stable and affordable for everyone.  So, why wait? You can check Our Articles or directly book a Consultation Call today at 1300 GET LOAN with the experts.

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