Household income crushed by rising rents

Only three cities — Sydney, Canberra and Darwin — recorded a higher median rent figure than the southernmost capital per CoreLogic’s new Quarterly Rental Review.Hobart’s median rent has soared to $507 per week, a rise of 12.8 per cent over the past 12 months.Only last year Hobart’s rental figure was neck and neck with Melbourne, a city that is now $57 per week more affordable than Hobart.Hobart’s annual growth percentage was the third highest in Australia, however, it ranked in the middle of the pack over the past quarter and among the lowest change for the past month.Meanwhile, ABS statistics place Tasmania’s average adult gross weekly earnings at the lowest in the nation at $1520; that is $217 below Australia’s average.Real Estate Institute of Tasmania president Michael Walsh said in Hobart and around the state, rental vacancy rates are extremely low, about 1 per cent.“That paints a picture of how challenging it is for people seeking a rental in our market,” he said.“I doubt landlords are pushing rents through the roof. Rents have climbed but nearly to the level of home value growth.”TasCOSS chief executive Adrienne Picone described CoreLogic’s report as an example of the “widespread inequality in our housing market”“If the housing market is meant to ensure everyone who needs a home, has a home, then it is currently not fit for purpose,” Ms Picone said.“In Tasmania, we have become accustomed to the idea that many Tasmanians will never own their home. We are now, alarmingly, seeing a reality that many Tasmanians cannot even afford to rent one”.Ms Picone said increasing wealth inequality should be of immense concern to all Tasmanians and with housing costs continuing to rise, more Tasmanians are finding themselves in financial distress.“Our members tell us there is a growing number of people and families who need emergency assistance to buy food, pay bills or put petrol in their car so they can keep getting to work and keep their job,” she said. “Homelessness is also a not an uncommon consequence of our very high rents.”Nationwide, rents are increasing at the fastest rate since 2008, says CoreLogic’s research director Tim Lawless.Mr Lawless expects rents to rise for the foreseeable future but with little increase in household incomes he said rental affordability will be an issue.Ms Picone said where markets fail to deliver essential services, governments must step in. “This report underlies our continued call on the Tasmanian Government to commit to meeting the needs of the growing number of Tasmanians who will need to rely on social housing for a roof over their heads, by building 1000 social homes every year for the next 10 years,” she said.The report revealed Hobart’s most affordable rental suburbs, of which seven of the Top 10 were units rather than houses.Brighton, Glenorchy and Claremont units topped the table with rents that ranged from $398 to $414.About 45-minutes drive from the CBD, Primrose Sands was the most affordable suburb to rent a house in with a median weekly rent of $429. RENTAL REVIEWRegion, median rent, change per month, quarter, 12 monthsCanberra $633 0.7% 1.5% 9.6% Sydney $595 0.8% 2.3% 7.2% Darwin $561 0.4% 1.7% 20.9% Hobart $507 0.2% 1.6% 12.8% Brisbane $491 0.8% 2.6% 9.7% Perth $478 0.3% 0.3% 14.5% Melbourne $450 0.6% 1.2% 1.8% Adelaide $440 0.3% 1.6% 8.3% Combined capitals $500 0.6% 1.7% 7.5%National $485 0.6% 1.9% 8.9%Source: CoreLogicjarrad.bevan@news.com.auTwitter follow Jarrad Bevan

from Daily Telegraph https://ift.tt/3GrDt8y

October 27, 2021
https://ift.tt/eA8V8J
Only three cities — Sydney, Canberra and Darwin — recorded a higher median rent figure than the southernmost capital per CoreLogic’s new Quarterly Rental Review.Hobart’s median rent has soared to $507 per week, a rise of 12.8 per cent over the past 12 months.Only last year Hobart’s rental figure was neck and neck with Melbourne, a city that is now $57 per week more affordable than Hobart.Hobart’s annual growth percentage was the third highest in Australia, however, it ranked in the middle of the pack over the past quarter and among the lowest change for the past month.Meanwhile, ABS statistics place Tasmania’s average adult gross weekly earnings at the lowest in the nation at $1520; that is $217 below Australia’s average.Real Estate Institute of Tasmania president Michael Walsh said in Hobart and around the state, rental vacancy rates are extremely low, about 1 per cent.“That paints a picture of how challenging it is for people seeking a rental in our market,” he said.“I doubt landlords are pushing rents through the roof. Rents have climbed but nearly to the level of home value growth.”TasCOSS chief executive Adrienne Picone described CoreLogic’s report as an example of the “widespread inequality in our housing market”“If the housing market is meant to ensure everyone who needs a home, has a home, then it is currently not fit for purpose,” Ms Picone said.“In Tasmania, we have become accustomed to the idea that many Tasmanians will never own their home. We are now, alarmingly, seeing a reality that many Tasmanians cannot even afford to rent one”.Ms Picone said increasing wealth inequality should be of immense concern to all Tasmanians and with housing costs continuing to rise, more Tasmanians are finding themselves in financial distress.“Our members tell us there is a growing number of people and families who need emergency assistance to buy food, pay bills or put petrol in their car so they can keep getting to work and keep their job,” she said. “Homelessness is also a not an uncommon consequence of our very high rents.”Nationwide, rents are increasing at the fastest rate since 2008, says CoreLogic’s research director Tim Lawless.Mr Lawless expects rents to rise for the foreseeable future but with little increase in household incomes he said rental affordability will be an issue.Ms Picone said where markets fail to deliver essential services, governments must step in. “This report underlies our continued call on the Tasmanian Government to commit to meeting the needs of the growing number of Tasmanians who will need to rely on social housing for a roof over their heads, by building 1000 social homes every year for the next 10 years,” she said.The report revealed Hobart’s most affordable rental suburbs, of which seven of the Top 10 were units rather than houses.Brighton, Glenorchy and Claremont units topped the table with rents that ranged from $398 to $414.About 45-minutes drive from the CBD, Primrose Sands was the most affordable suburb to rent a house in with a median weekly rent of $429. RENTAL REVIEWRegion, median rent, change per month, quarter, 12 monthsCanberra $633 0.7% 1.5% 9.6% Sydney $595 0.8% 2.3% 7.2% Darwin $561 0.4% 1.7% 20.9% Hobart $507 0.2% 1.6% 12.8% Brisbane $491 0.8% 2.6% 9.7% Perth $478 0.3% 0.3% 14.5% Melbourne $450 0.6% 1.2% 1.8% Adelaide $440 0.3% 1.6% 8.3% Combined capitals $500 0.6% 1.7% 7.5%National $485 0.6% 1.9% 8.9%Source: CoreLogicjarrad.bevan@news.com.auTwitter follow Jarrad Bevan