Most Australians Spend Half of their Monthly Income on Rent

The cost of living has been a major concern for people living in Australia, and the latest report from ANZ Bank and Australian property consultancy Corelogic confirms it. The report reveals that a lack of rental housing supply and an increase in the number of tenants are causing significantly higher rental prices. Housing affordability in Australia is at its lowest in nine years, and households across the nation are feeling the strain, especially the younger generation.

Rental affordability has been a significant problem faced by lower-income families across the country. On average, families need to spend about 31% of their income to pay typical rent. In smaller cities like Hobart, this percentage increases to 34%. However, the situation is far worse in bigger cities like Sydney, where people need more than half of their income to pay off a new home loan, and it takes about 12 years to accumulate a 20% deposit to buy a house.

Renters who dream of owning a home one day find the goal slipping away as they struggle to save enough money for a down payment. As a result, many of them have no choice but to go back and live with their parents to save money or make ends meet because the salary they earn is just enough to pay bills.

The survey also pointed out that higher construction costs are making it increasingly difficult for people to enter the housing market and are driving them towards the rental market. This shift in trend has significantly impacted the affordability of rental housing in Australia, making it harder for tenants to budget and plan their finances effectively.

The soaring costs of groceries and energy prices only compound the issues surrounding rental affordability. Households across the country are finding it hard to balance their budgets and manage their finances, leaving them struggling to make ends meet every month.

The lack of rental housing supply and rising rental prices in Australia is a cause of major concern for households across the country, especially for those struggling to make ends meet. It's high time that the government and industry players come together to address this issue and take measures to improve the affordability of rental housing across the nation.