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Rent a home in Victoria | North

Rent a home in Victoria | North
Rent a home in Victoria | North

The latest Rental Pain Index (RPI) data for July 2024 highlights the differences between each state.

The stark differences show that Australians’ rental woes are changing and there are signs that the pain is easing.

While the pain is easing somewhat, high rents remain a major problem for households across the country.

Victoria saw a modest decline, from 75.37% to 74.58% compared to the country as a whole, where Australia nationally experienced a slight increase in rental pain from 72.25% in June to 72.90%

The RPI data also shows that in New South Wales (NSW), the percentage of suburban areas (SA2s) experiencing rent pain fell slightly, from 72.54% in June to 71.69% in July.

In Queensland the rate rose from 80.98% to 81.22%, indicating more affordability issues. Western Australia, despite having the highest rent increase rates, saw a decrease in rental issues from 83.74% to 82.76%.

Tasmania showed a significant improvement, with extreme rent pain decreasing from 29.87% to 27.27%, indicating improved rental affordability.

Kent Lardner of Suburb Trends noted that despite the downturn some Australians are experiencing, it is still a tough time overall for Australians renting a property.

“While we are seeing early signs of easing rental pressures in some areas, the broader picture remains challenging. States like Queensland are facing significant affordability challenges, with over 80% of SA2s in extreme rental pain,” he said.

“The modest improvements in states like Tasmania are promising, but we cannot ignore the fact that high rents are still a burden for many households. Stabilizing rents is not enough; we need to see rents fall below 30% of household income to ensure long-term affordability.”

There are encouraging signs of rental pressure in some SA3 regions. Areas such as Jimboomba in Greater Brisbane have high vacancy rates, suggesting that rental pressures may be easing.

However, high rents remain a major problem, especially when they account for more than 30% of household income.

“The impact of high rents on household budgets is enormous,” Lardner added. “Many families are forced to spend a substantial portion of their income on housing, leaving little room for other essential expenses. It is crucial that policymakers focus on reducing rental costs to sustainable levels.”