Worst state for rental pain revealed
NSW has emerged as the Australian state feeling the biggest rental squeeze, according to a new analysis of property data.
The numbers are contained in the September edition of the Rental Pain Index report, published by research firm Suburbtrends.
It reveals 12 NSW suburb areas are listed as recording a 100 out of 100 on the rental pain index — more than any other state.
That includes area across Sydney such as Sans Souci-Ramsgate and Riverwood, as well as regional areas such as Eden and North Nowra.
Queensland was next worst with 10 LGAs registered a 100 score.
The “Rental Pain Index” is scaled from zero to 100 - with 100 denoting the most unfavourable conditions for renters.
It’s measured by five variables - rent rises, advertised rentals, vacancy rates, vacancy change and rental affordability.
The report highlights in NSW, 65 per cent of the state’s suburbs were said to be in “extreme rental pain”.
While in South Australia, that figure was at 81 per cent - the highest in the country.
“On a national level, 68 per cent of suburb areas are now in extreme rental stress, unchanged from last month, reflecting a nationwide rental affordability crisis that remains a pressing concern,” the report said.
According to the report, rising rents and low vacancy rates were placing strains on household budgets.
“Economists argue that restrictive zoning laws and local opposition, commonly referred to as NIMBYism (Not In My Back Yard), are hindering the construction of new housing in areas where it is most needed,” the report said.
It also argues for the expansion of public and affordable housing and for the taxation of empty homes.
And Suburbtrends founder Kent Lardner said the easing of rental increases should not be viewed as a sign that things are improving.
“Focusing solely on rent increases can be misleading,” he said.
“Even in areas where price hikes have eased, many renters continue to face severe affordability issues, with rent consuming well over 30 per cent of household income.
“This is especially true across numerous LGAs, where vacancy rates remain critically low, exacerbating competition for already scarce rental properties.
