Renters in Australian capitals are spending on average almost $15,000 more a year to rent a home since the pandemic, analysis has revealed.
Research by advocacy organization All People's Residence showed that, on average, renters in capital cities pay $14,700 more a year to rent a home and $9,600 more to rent a unit compared to 2020.
Sydney and Perth have seen the steepest rent increases, with annual increases well above the capital city averages for units ($10,452, $14,508) and houses ($18,512, $18,304). Unit rents in Adelaide and Brisbane are also above average.
All people's Residence analyzed rental data from SQM Analysis to construct its report.
Maiy Azize, spokesperson for All people's Residence, said “Keeping a roof over your head” is the biggest living expense for most people in Australia.
“Sharp rent growth is pushing more people into serious housing stress and homelessness,” Azize said.
“People are sacrificing their needs to pay rent, living in deplorable and unsanitary conditions because they have nowhere else to go, and abandoning important life decisions due to housing insecurity.
“Australians are being excluded from the cities where they work, which can impact the liveability of our cities and the quality of essential services.”
A Sydney tenant, Willimena, 60, lives in a shared house in Eastwood with her son and two others. Your rent increases every year.
“It went from $690 [a week] at $730 to $750 to $800 and the last one was going to cost $900 but I was able to lower it,” he said. They are now paying $850 after arguing that no repairs had been made to the property and that they are good tenants. She receives a caregiver fee and works 15 hours a week at a veterinary clinic.
“I'm struggling to pay the bills, plus rent and food. There are no luxuries.”
If they get another raise, she'll have to move further away, probably to another shared house, making it harder to get to work.
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The latest data from CoreLogic showed that rents have reached a record high, with the national average now at $627 per week, an increase of 8.5% between May 2023 and 2024.
Azize said a shortfall of 640,000 social homes was putting additional pressure on the rental market and pushing people into homelessness.
“That number is expected to rise to almost 1 million within two decades. “We need to end the deficit and make social housing an option for more Australians, not just a safety net for the marginalized.”
All people's Residence wants the government to make changes to negative gearing and capital gains tax, Azize said.
Recent Guardian Australia analysis showed those earning more than $180,000 benefited from a quarter of all negative leverage kickbacks, reducing their collective tax bill by $1.3 billion in 2021-22.
“Poll after poll shows that most voters want action on these investor tax breaks because they are unfair and increase the cost of housing for everyone. “Our supporters are excited by reports that the Labor Party is open to change,” Azize said.
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