Rental crisis deepens as housing affordability gap widens: report
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The latest Suburbtrends Rental Pain Index for August 2024 has revealed an ongoing rental crisis across Australia, with rising prices and housing shortages putting increasing pressure on renters nationwide.
Kent Lardner, founder of Suburbtrends, warned that recent house price growth has created a significant barrier for many first home buyers.
“The massive growth in house prices since in recent years has created a significant gap for most first home buyers, making homeownership increasingly unattainable without familial financial support,” Mr Lardner said.
The report highlights alarming trends in Western Australia and Queensland, with rental pain indices at 82 and 83 respectively. Significant increases were also noted in South Australia and Victoria.
Mr Lardner said the data signals a looming crisis for policymakers who have adopted measures that continue to drive up house prices.
“Those stuck without such support are likely to remain trapped in the private rental market. This month’s data signals a looming reckoning for the political class, who continue to adopt policies that continually drive up house prices,” he said.
The national average rental pain index remains high, indicating widespread rental stress across the country.
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Mr Lardner emphasised the growing risk of displacement and homelessness, citing increased demand for specialist homelessness services.
“The risk of displacement and homelessness is on the rise, as evidenced by the increasing demand on specialist homelessness services. Immediate measures are needed to provide emergency accommodations and support for those at the brink of losing their homes or already homeless,” he said.
The report identifies a significant disconnect between population growth and housing supply as the primary driver of the crisis.
Mr Lardner called for closer alignment of population and housing policies to ensure sustainable development.
“Population growth and housing supply cannot be left as independent policies; they must be closely linked to ensure sustainable development. Without aligning these policies, the rental crisis will only worsen,” he concluded.