Suburbtrends Rental Pain Index September 2024: The housing crisis persists

Suburbtrends

Suburbtrends Rental Pain Index September 2024: The housing crisis persists
Date: 5th September 2024
For Immediate Release

The latest Suburbtrends "Rental Pain Index" for September 2024 reveals that despite modest easing in rental price increases in some areas, Australia’s rental crisis remains far from resolved. New data examining Local Government Areas (LGAs) paints a sobering picture, with many regions still experiencing extreme rental stress, exacerbated by low vacancy rates and a shortage of affordable rental stock.

Kent Lardner, founder of Suburbtrends, warns against viewing slower rental price growth as an indicator of improvement. "Focusing solely on rent increases can be misleading. Even in areas where price hikes have eased, many renters continue to face severe affordability issues, with rent consuming well over 30% of household income. This is especially true across numerous LGAs, where vacancy rates remain critically low, exacerbating competition for already scarce rental properties. The slowing pace of rental increases does not mean the crisis is over—it simply means the pressure has shifted slightly, but the overall stress on renters remains severe."

September’s data highlights that the top 20 LGAs in regions like Queensland and South Australia continue to report Rental Pain Index (RPI) scores over 80, showing entrenched rental stress. Lower rental increases do little to alleviate the risk of homelessness when rents remain unaffordable for many. With vacancy rates below 1% in some areas, competition for housing remains fierce.

Lardner emphasises the human cost of the crisis: "It’s not just about numbers; it's about people at risk of losing their homes. The RPI data shows that the risk of displacement and homelessness is still very real. Families are being priced out, even in regions where rents aren’t rising as fast. The system continues to fail those who need stable housing the most."

He points to data showing that in several LGAs, rental affordability remains well above 30% of household income, despite slower rent increases. This discrepancy highlights that the core issue is not just the rate of rental growth, but the fundamental lack of affordable housing options. The persistent housing shortage is keeping vacancy rates dangerously low, making it harder for vulnerable populations to find shelter.

A solution put forward by faith-based organisations like Sydney Anglican Property (SAP) and Anglicare offers a glimpse of hope. These groups are leveraging their underutilised land and buildings to provide long-term affordable housing solutions. Lardner praises their mission-driven approach: "Initiatives like SAP’s efforts to develop affordable housing on church-owned land demonstrate the kind of innovative thinking we need. By turning unused spaces into housing, we can start to address the supply-side issues at the heart of this crisis."

SAP’s collaboration with Anglicare, including their bid to build 1,000 affordable rental dwellings under the Federal Government’s Housing Australia Future Fund, is a positive example of how faith-based groups can play a crucial role in tackling the rental crisis.

Lardner concludes, "While public policy needs to align population growth with housing supply, faith-based initiatives offer immediate, community-focused solutions that can help ease the crisis in the short term. What we need now is for these efforts to be scaled, and for broader policy changes to support sustainable, affordable housing development."

For full September 2024 Rental Pain Index data, media outlets can contact us directly.

Contact:
Kent Lardner
Phone: 0458 936 912
Email: kentlardner@suburbtrends.com.au