Earning a six-figure salary won’t guarantee ns a decent rental home as the housing crisis escalates both for people in cities and in rural areas.
Renters now need to earn $130,000 a year to afford an average unit, according to data published today by Everybody’s Home.
‘Rental stress is no longer confined to those on lower incomes,’ spokesperson Maiy Azize said.
‘It’s affecting professionals, essential workers, and middle-income families who simply can’t keep up with soaring rents.’
Everybody’s Home, a campaign to address the housing crisis, said the median income in is $72,592 and median weekly asking rent is $566 for a unit.
Alarmingly, the report found people earning $70,000 per year would have to spend more than half of their income on a unit which demanded they pay the average national rent.
The report looks at rental affordability for ns earning between $40,000 and $130,000 per year.
It reveals that capital cities are facing a ‘particularly dire’ situation in the rental market, with Sydney and the Gold Coast among the most unaffordable regions.
Perth, Brisbane, Melbourne, and Canberra are also seeing worsening affordability, the report said.
West Queensland, Kangaroo Island, and Northern SA were exceptions, with the ‘most affordable’ rent.
However, rent of an average unit still took up 25 to 38 per cent of a $40,000 per year income.
‘Our research shows people on [a $100,000 salary] are struggling in both cities and regional areas because rents are so staggeringly high,’ Ms Azize said.
She said those on lower incomes, such as people earning $40,000 per year, face rents that are up to 119 percent of their income.
‘This crisis is stopping people from being able to live and work in their communities, leading people to delay major life choices, and threatening social cohesion.’
Ahead of the federal election, Ms Azize said housing must be treated as a top priority, with more ns at risk of being priced out of affordable home.
The campaign is calling on parties and candidates to scrap investor tax handouts, like negative gearing and the capital gains tax discount, and boost social housing.
Australia’s rental crisis shows no signs of easing, with the vacancy rate declining to one per cent in January, according to SQM Research.
The total number of rental vacancies fell sharply to 31,822 – a significant drop from December’s 47,336 figures.
Minister for Housing and Homelessness Clare O’Neil has said housing is a critical issue for the government.
‘I want people to know that I really do understand the pressure that this housing crisis is putting on people, whether they need social housing, are renting, or looking to buy a home,’ she told ABC.
‘I’m dedicating every day to turn this housing crisis around.
‘We are also working hard with states and territories to make renting more affordable and overall a better experience.’
Shadow Housing Minister Michael Sukkar has criticised the government’s speed at building new homes.
If elected, the Coalition has said it would set up a $5billion fund to increase infrastructure development, with the target of building 500,000 new homes.