The latest Suburbtrends “Rental Pain Index” for August 2024 highlights the ongoing rental crisis in Australia. With rising rental prices and a shortage of homes, urgent action is needed to alleviate the stress on renters nationwide.
Kent Lardner, founder of Suburbtrends, warns, “The massive growth in house prices since in recent years has created a significant gap for most first home buyers, making homeownership increasingly unattainable without familial financial support. Those stuck without such support are likely to remain trapped in the private rental market. This month’s data signals a looming reckoning for the political class, who continue to adopt policies that continually drive up house prices.”
The data reveals alarming trends in Western Australia (WA) and Queensland (QLD), with rental pain indices at 82 and 83 respectively, and significant increases in South Australia (SA) and Victoria (VIC). The national average also remains high, indicating widespread rental stress across the country.
Kent emphasises, “The risk of displacement and homelessness is on the rise, as evidenced by the increasing demand on specialist homelessness services. Immediate measures are needed to provide emergency accommodations and support for those at the brink of losing their homes or already homeless.”
He concludes, “The real drivers of this problem are the huge disconnect between population growth and housing supply. Population growth and housing supply cannot be left as independent policies; they must be closely linked to ensure sustainable development. Without aligning these policies, the rental crisis will only worsen.”
The full August 2024 Rental Pain Index data is available at this link.