An analysis conducted by Suburbtrends of Australia’s 15 worst suburbs for rentals showed where tenants were hurting most.
The analysis defined the ‘Rental Pain Index’ (RPI), with a number of factors to give an overall score out of 100.
It revealed that Queensland, South Australia and NSW are currently experiencing the greatest rental pressure.
In terms of rental affordability, measured as an average rent as a percentage of income, NSW has the highest value at 35.96 percent followed by Queensland and SA.
Deniliquin’s RPI result was 87, and showed an 18 per cent average increase over 12 months.
According to Sue Pitts from Ray White Deniliquin, the local result can be attributed to factors that include “constant low availability”.
“Also the increases in interest rates, insurance and rates have contributed to the higher rent prices that local tenants are facing,” she said.
Stanthorpe, a rural town east of Goondiwindi near the NSW border was ranked number one.
Its RPI result was 91 and they had a 13 per cent average increase over 12 months.
At number two was Strathalbyn in South Australia with an RPI result of 91 and an 18 per cent average increase.
Big River Real Estate principal licensee Angela Carmichael said she agrees with the analysis findings.
“Increasing numbers of investors are disposing of their rental properties, while tenants face hardship due to rising rent,” she acknowledged.
“It’s a very difficult time in the rental market for all right now.
“Balancing the needs of tenants and investors is a challenge.”
Mrs Carmichael stated that local investors are mostly made up of your “mum and dad” investors, not big corporations.
“Right now it doesn’t make sense for them to invest due to the rising costs,”she said.
“It all comes down to supply and demand, and at the moment it is less attractive for investors.
“The longer it stays that way the longer the problem will continue Australia wide.”
The high residential rents have a heavy impact on tenants and their budgets.
Other factors driving the national price rise include a reduction in average household size, a rapid increase in international arrivals, rising interest rates, less building activity and a stronger population growth during the pandemic.
According to the Real Estate Industry Association, proposals like rent control and rent freezers that aim to alleviate the burden on tenants can further constrict rental supply, increase inequity, and exacerbate rental costs in the long term.
It says new tenancy legislation, soaring interest rates, and additional taxes on landlords are eroding the rights of property investors.
The association hopes private investment in rental properties is not further discouraged.
Renting is a critical part of the housing market where close to a third of all Australians are tenants.
According to industry leaders, in a complex and ever-changing rental market there is unlikely to be any respite for the renters for the remainder of 2023.
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