- RentRabbit.com.au's Rental Crisis Report identified top 20 undersupplied rental markets, crowning Banora Point
- Low socio-economic suburbs hit hardest with tenants given very few options of where to live, says Ben Pretty
- Rents in all 20 suburbs found to have risen in past year, now comprising over a 50% share of household income
Amid talk of the deepening Australia-wide rental crisis, new research has named the top 20 suburbs where rental markets are significantly undersupplied.
The research, commissioned by rental review platform RentRabbit.com.au for the quarterly Rental Crisis Report, identified the suburbs where tenants have been hit hardest by dwindling supplies.
The report contained data from Suburbtrends and analysed all Australian rental markets to find suburbs with astoundingly low vacancy rates, a low average household weekly income, and a below-average socio-economic status.
The resulting suburbs were ranked into a top 20 list by their rent as a share of household income, with all found to reflect their tenants’ hardships in an annual increase in weekly rent.
RentRabbit.com.au co-founder Ben Pretty said the rental crisis is one of the most significiant issues facing the newly-elected government, as many Australians struggle to find a place to live.
“For affluent tenants in more privileged suburbs, they at least have more options in terms of where they can live, especially as many of them are knowledge workers who can work remotely,” he said.
For those below the average socio-economic status line, a solution does not come as easily.
“For the many tenants who have low household incomes and who live in socio-economically disadvantaged areas, they’re really struggling right now and have very few options.”
Ben Pretty. RentRabbit.com.au co-founder
Mr Pretty added that the purpose of RentRabbit.com.au’s Rental Crisis Report is to highlight the suburbs where the rental crisis is most acute, in an effort to prompt change.
“We hope the Albanese government can work with the states and territories to find a way to increase the level of rental supply and solve this problem, although we recognise there are no easy answers,” he added.
Top 20 markets where tenants are desperate for rentals
Topping the list as Australia’s most undersupplied rental market was Banora Point, located in the Northern Rivers region of New South Wales. Here, tenants are faced with rents that are an incredulous 64% share of their household income.
Located in the same shire, Tweed Heads South was ranked second while the Queensland suburb of Coombabah followed shortly behind, both at a 62% share.
Suburbs in New South Wales dominated the rankings with 11 suburbs listed.
Rent as a share of household income surpassed a staggering 50% in all of the top 20 suburbs.
|Rank||State||Suburb||Postcode||Property type||Vacancy rate||Rent as share of household income|
|2||NSW||Tweed Heads South||2486||Unit||0.2%||62%|
Undersupply isn’t the only issue tenants in these areas are contending with.
Rents in all suburbs were found to have increased in the past year, which could point to further hikes in the near future if supply does not see a much needed boost.