Renters in NSW, Victoria and Queensland continue to suffer from the increasing gap between their household incomes and the median rents, a new report has found.
The 2018 Affordable Housing Income Gap Report revealed that while property prices and median rents across Australia increased by 82 and 76 percent respectively between 2006 and 2016, household incomes grew by just 40 percent.
“Over the past two decades, housing affordability in Australia has deteriorated at an extraordinary rate,” the report said. “Recent research by the Everybody’s Home campaign shows it is now generally accepted as fait accompli that home ownership is beyond the reach of average income earners and a significant proportion of the population has all but given up on the “Australian Dream”.”
Melbourne is the worst capital city for renters, as median rents were up 75 percent while incomes grew by merely 43 percent. Brighton and Brighton East were the least affordable suburbs to rent in the city, requiring 42 percent of an average renter’s weekly income to pay the median rent. Melton was the most affordable with 21 percent.
In Sydney, Woollahra led as the least affordable suburb with 44 percent of income required to pay median rent. Regional NSW did not fare better. Byron’s median rent at $590 was worth 48 percent of income, while Port Macquarie real estate took 34 percent of income for the median rent of $390.
Queensland had the most modest growth in prices. The increase in rents of 61 percent over the decade was also partially offset by the steady income growth of 40.5 percent. Eatons Hill was the least affordable locality in the Greater Brisbane area, while the localities of postcode 4184 were the most affordable.
Find the report here.