Australia Housing Market: Rental Affordability Declines Further

Townsville residents face soaring rental prices, with the median rent hitting $460 per week, a 35.3% increase from March 2020, leaving many struggling to make ends meet.

Townsville residents are feeling the pinch as rental prices continue to soar, with the median rent in the area reaching $460 per week according to the latest PropTrack Rental Affordability Report. This represents a staggering 35.3 per cent increase compared to March 2020, leaving many struggling to make ends meet.

The report also highlighted a concerning trend of declining rental affordability across Queensland, with conditions now at their lowest level on record. This sharp deterioration comes after a period of relatively favorable affordability from 2014-15 to 2020-21, making the current situation even more challenging for residents.

One of the key drivers behind this decline in affordability is the significant increase in rents since the start of the pandemic, far outpacing wage growth. Nationally, rents have surged by 38 per cent since the beginning of the pandemic, making it increasingly difficult for households to find affordable rental properties.

In fact, the report found that just 39 per cent of properties advertised for rent from July to December 2023 were deemed affordable for a typical-income household, earning around $111,000 per year. In New South Wales, this figure drops even further, with only 28 per cent of rentals considered affordable for a typical-income household.

For lower-income households, the situation is even more dire, with those earning $49,000 per year essentially unable to afford any of the advertised rental properties. This highlights the urgent need for increased availability and supply of rental properties to improve affordability in the long term.

The root cause of the problem lies in the scarcity of rental properties, with vacancy rates at an all-time low across the country. The solution, according to experts, is to build more homes in high-demand areas to meet the growing demand for rental properties.

The current rental affordability crisis in Townsville and Queensland is a pressing issue that requires immediate attention. Without intervention to increase supply and improve affordability, many residents will continue to struggle to find suitable and affordable rental accommodation.