Rental Pain Index shows mixed trends across Australia in July 2024
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The latest Rental Pain Index (RPI) data for July 2024 reveals a complex picture of Australia’s rental market, with varying levels of rental distress across different states.
Key findings include:
- New South Wales saw a slight decrease in extreme rental pain, from 72.54% of suburb areas in June to 71.69% in July.
- Queensland experienced an increase from 80.98% to 81.22%, indicating worsening affordability challenges.
- Western Australia, despite having the highest rental increase rates, showed a marginal decrease from 83.74% to 82.76%.
- Nationally, the proportion of areas experiencing extreme rental pain increased slightly from 72.25% in June to 72.90% in July.
- Victoria saw a modest reduction from 75.37% to 74.58%.
- Tasmania recorded significant improvement, reducing extreme rental pain from 29.87% to 27.27%.
Kent Lardner, a spokesperson for Suburbtrends, said: “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 issues, with over 80% of SA2s in extreme rental pain.”
Some areas, such as Hawkesbury in Greater Sydney and Jimboomba in Greater Brisbane, are showing signs of easing pressure with increasing vacancy rates.
However, Lardner emphasized that high rents continue to be a major concern: “The impact of high rents on household budgets is profound. Many families are forced to allocate a substantial portion of their income to housing, leaving little room for other essential expenses.”
The report highlights the need for policymakers to focus on reducing rental costs to sustainable levels, as stabilizing rents alone is not sufficient to ensure long-term affordability.