Securing an affordable rental in Australia has become an increasingly challenging feat, with a nearly 50% decrease in the number of properties listed for $400 or less per week compared to the previous year. This scarcity is exacerbated by a 15% rise in the national median weekly rent, climbing from $480 to $550, leading to a decline in new properties within the affordable range.
In October, a mere 11% of total listings nationwide fell within the affordable bracket, painting a concerning picture of the ongoing affordability crisis. The situation is particularly dire in Canberra, crowned as the most unaffordable city in Australia, where the weekly median rent sits at $600, and only 2% of properties are listed for $400 or under.
The housing struggle extends beyond the capital, with Sydney experiencing a 62% drop in affordable listed rentals, leaving just 4% available. All major cities, except for Hobart, witness critically low levels of affordable housing compared to the previous year.
In regional Australia, the median weekly rent has surged to $490, a 9% increase from last year, presenting a relatively more affordable option than the combined cities with a median weekly rent of $570. Notably, in regional South Australia, 60% of properties are listed at $400 per week or less.
While Regional Tasmania and Victoria boast over 30% of listings as affordable, the broader challenge persists. The only viable solutions to increase the stock of affordable housing involve building more rental properties to meet the growing demand or implementing measures to reduce demand.
Yet, with Australia in the midst of a population boom, spurred by a surge in net migration post-pandemic border closures, the demand for housing continues to outpace supply. Despite a projected easing of growth in 2024 and 2025, the current housing supply issues, exacerbated by smaller household sizes during the pandemic persist.
Recognizing the urgency, the National Cabinet committed in August to building 1.2 million homes over the next five years. However, the current pace of construction falls short, requiring an almost 40% increase to meet this ambitious target. The mismatch between housing supply and demand is exacerbated by faster-than-expected population growth, exerting sustained upward pressure on both home and rental prices.
Addressing these challenges necessitates not only an accelerated pace of construction but also strategic measures, including policies to reduce planning impediments hindering new supply and encouraging better utilization of existing homes. As the population continues to burgeon, proactive steps in housing supply, infrastructure, and investment frameworks are imperative to ensure the future liveability of our cities.
