This article is from the Australian Property Journal archive
MORE high-income earners are renting than ever, while more low-income renters are facing housing stress as affordable rental homes dwindle.
According to new AHURI research, in 2021 almost a quarter of all renting households were in the top income segments, compared to just 8% in 1996.
While 82% of very low-income renting households are in housing affordability stress, with 2021 seeing the proportion of low rent dwellings make up just 13% of private rental stock.
This is down significantly from the 60% share recorded in 1996.
Meaning of a total 425,000 renting households in the lowest income quintile, only 77,000 were able to find an affordable home in 2021.
“The 2021 Census highlights the long-term change in the national distribution of renting household incomes,” said Margaret Reynolds, research author from Swinburne University.
“There has been a significant growth of renting households with high incomes of around $140,000 per year and above (in $2021) – these households accounted for only 8% of private renters in 1996, ballooning to 24% in 2021.”
Based on 2021 data, there is a shortage of 348,000 affordable and available private rental homes for households with the lowest 20% of incomes or $39,000 or less per year.
This is compared with a shortage of 211,000 dwellings 15 years ago.
“Interestingly the 2016–21 period saw a small increase in the number of more affordable dwellings priced at the lowest end of the market,” said Reynolds.
“This is the first time in the last 25 years there has been an increase in the number of low rent dwellings, however this is very likely a short-term anomaly shaped by COVID-19 conditions at the time of the Census, which saw a dramatic fall in demand for private rental, falls in rents and increases in vacancy rates.”
Recent research by HILDA also found single parents and non-elderly single people have consistently faced higher levels of both housing and financial stress than the population at large.
