The index scores suburbs from one (optimum renting situations) to 100 (unfavourable renting situations) primarily based on elements together with common hire rises, proportion of revenue put in direction of hire and emptiness charges in an space.
Thorneside, east of Brisbane, was discovered to be essentially the most painful suburb to hire in with emptiness charges as little as 0.6 per cent and tenants copping a mean 12-month rental enhance of 8 per cent.
Rental affordability within the space was recorded under the worldwide accepted commonplace of 30 per cent, with tenants placing as much as 36 per cent of their revenue in direction of hire.
In NSW, Greenacre South got here in because the second worst-scoring suburb with rents rising as much as 24 per cent within the final 12 months and a emptiness charge of zero per cent.
To add to rental stress, tenants are spending as much as 45 per cent of their revenue on hire.
Other suburbs inflicting rental ache embody Port Kembla, Maroubra, Kingsford and Wetherill Park in NSW adopted by Robina West on the Gold Coast.
In Western Australia, Cooloongup and Hamilton Hill scored 99 per cent on the rental ache index, as did Invermay in Tasmania.
Suburbtrends founder and property knowledge skilled, Kent Lardner, informed 9news.com.au a driving issue behind rental stress in NSW was the numerous shift in Sydneysiders transferring in direction of suburbs in and across the metropolis.
“We looked at figures from last month’s data we saw a lot of south-west Sydney appearing, now we’re seeing a lot of the eastern suburbs’ south,” he mentioned.
Lardner mentioned one other issue included the return of scholars following the COVID-19 pandemic.
“If we look back a couple of years we saw a lot of students exit Kensington, and other areas, and we’re seeing that those areas now have tightened right up,” he mentioned.
“So we’re seeing vacancy rates tight, we’re seeing rents shooting up, it’s a really interesting dynamic that I didn’t expect to see.”
The 25 most painful suburbs in Australia to hire in
Lardner mentioned Queensland was in a difficult state of affairs, notably on the Gold Coast.
“We’ve got Southport, which has been quite bad for some time, in and around Southport is a significant problem, Riverina is also a significant problem,” he mentioned.
“But equally, it’s a fairly strong spread to the south so we have a number of suburbs in around south, around Logan in that region, things are very tough – rents have increased by in excess of 10 per cent some of the ‘bad’ suburbs have jumped by 18 per cent or more.”
To ease the pressure on renters, Lardner mentioned the federal government wanted to make use of a combined vary of methods, which steadiness provide with reasonably priced and public housing.
“We need to be careful of what we are building, increase in supply is great but we need an increase in supply of affordable housing,” he mentioned.
“What we need is an abundance of under $600,000, or even better an abundance of under $500,000 properties in that new housing stock to keep them affordable as rentals.
“What that might probably do shouldn’t be solely offer you cheaper leases… the opposite benefit is it will herald much more buyers, as a result of most buyers are drawn to $500,000 and fewer.
“So there would be a much larger cohort of investors out there if we can build lower-cost houses.”
Source: www.9news.com.au
