Undersupplied rental markets
New report reveals that low socio-economic areas have been hit hardest by Australia’s rental crisis, with tenants facing rising rents and astoundingly low vacancies. Image – Canva
  • 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.

Ben Pretty RentRabbit
Ben Pretty, RentRabbit.com.au co-founder. Image supplied.

“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
1 NSW Banora Point 2486 House 0.3% 64%
2 NSW Tweed Heads South 2486 Unit 0.2% 62%
3 QLD Coombabah 4216 House 0.3% 62%
4 NSW Nambucca Heads 2447 House 0.2% 61%
5 QLD Cooroy 4563 House 0.6% 61%
6 NSW Ulladulla 2539 House 0.3% 61%
7 SA Victor Harbor 5211 House 0.3% 59%
8 NSW Maclean 2463 House 0.5% 56%
9 NSW West Kempsey 2440 House 0.3% 54%
10 WA Busselton 6280 House 0.6% 54%
11 TAS Rokeby 7019 House 0.0% 53%
12 NSW Wauchope 2446 House 0.5% 53%
13 NSW Unanderra 2526 House 0.8% 53%
14 QLD Currimundi 4551 House 0.7% 52%
15 NSW Gateshead 2290 House 0.7% 52%
16 QLD Urraween 4655 House 0.8% 51%
17 TAS Mowbray 7248 House 0.3% 51%
18 NSW Corrimal 2518 House 0.5% 51%
19 TAS Moonah 7009 House 0.0% 50%
20 NSW Belmont 2280 House 0.4% 50%

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.

 

 

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