Time to read : 2 Minutes
Rent.com.au has just released their annual report and its findings are not heart warming.
🫰🏻 It found that renting has become even more unaffordable – with Hobart being the most expensive city to live in.
📧 Termination notices and rental increases are becoming the norm and renters are at crisis point.
What you need to know
There is no nice way to say it, places cost more and the insecurity of renting makes it harder for everyday Australians to live where they work.
The 2022 Rental Affordability Index shows how widespread the problem has become.
For single parents, low-income households and pensioners, renting has become unaffordable in all major city centres – with 42% in extreme distress nationally, 47% in NSW.
More people are renting than ever before, with an increase from 26% to 31% since 1995, meaning one third of us are in a home that is on the whim of our landlords.
Investors are competing with buyers for property purchases, keeping middle and high-income owners renting for longer, as they remain priced out of home ownership.
With the post COVID influx of students, visitors and international workers the problem is only getting worse.
On top of this, some investors are keeping their properties empty – these are known as zombie houses – and using negative gearing to cover their costs.
The bottom line
A combination of high demand and low stock has seen Australian rents climb, and it's left potential renters literally bidding to get homes.
🏠 In the short-term there is going to be a lot of pain for renters, with the Green's efforts to create rent caps, longer European-style leases and put a stop to no-grounds evictions still just a pipe dream.
✅ On the upside, the 180-day cap on short-term rentals like Airbnb in parts of Sydney, Brisbane and Newcastle should help a little – with owners needing to pay 50% more in council fees when they rent out their place for more than 60 days.
🔍 And remember, renters do have rights and in some states there are restrictions on by how much your landlord can raise your rent.
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