The latest 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. The problem is exacerbated by low vacancy rates and a shortage of affordable rental stock.
Kent Lardner, founder of publisher Suburbtrends, warns against viewing slower rental price growth as an indicator of improvement.
“Focusing solely on rent increases can be misleading,” he said. “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.
Tasmanian Rental Pain Increasing
Tasmania saw a small increase in extreme rental pain, rising from 27% to 31%, with rental affordability deteriorating despite a 1% rent increase.
The island state maintains a RPI score of 62, with 31% of income spent on rent and a vacancy rate of 1.9%
The top 10 worst local government areas (LGAs) in Tasmania by Rental Pain Index (RPI) for September 2024 reveal significant rental stress across the state. Devonport leads the list with an RPI of 85, where renters spend 34% of their income on rent, paired with a vacancy rate of 1.7%. Waratah-Wynyard follows closely with an RPI of 84, facing similar affordability pressures and a low vacancy rate of 0.7%, indicating limited housing availability.
In Central Coast and George Town, RPIs of 80 and 77 reflect ongoing rental stress, with rent-to-income ratios of 34% and vacancy rates as low as 0.6%. Brighton, with an RPI of 76, rounds out the top five, where renters spend 31% of their income on rent.
The worst single suburb for rental pain was West Ulverstone with a score of 100 based on the back of a 6% increase in rent in the last 12 months, a rent-to-income ratio of 37% and a low vacancy rate of 0.81%.
Across these LGAs, low vacancy rates and high rent-to-income ratios are key drivers of rental stress, with limited rental stock on the market intensifying competition for housing. These figures highlight the ongoing affordability challenges faced by renters in Tasmania, where tight markets and rising rents are exacerbating the rental crisis.
