Hobart households face relatively unaffordable rents, with the capital city of Tasmania making Sydney the least affordable city to rent in the country, according to the latest report released by the Rental Abordability Index (RAI).
"[Hobart] is in a real estate impasse," said Ellen Witte, an associate of SGS Economics and Planning.
Witte said that the affordability of rents in Hobart fell further during the winter. As a result, the middle-income household now spends 30% of its income on rent, which further complicates saving for a mortgage deposit.
The RAI, published twice a year by the National Shelter, the Community Sector Banking, the SGS Economics & Planning and the Fraternité de Saint-Laurent, is an indicator of the price of rent relative to household income based on new leases.
An RAI less than or equal to 100 indicates that households would be required to spend up to 30% of their income on rent, while an RAI of 100-120 indicates that households are faced with relatively unaffordable rents.
Greater Hobart reached an IAR of 101 in June 2018. This means that median rents in the Hobart metro area are now unaffordable, even for rental households with a median income.
Adrian Pisarski, executive director of the National Shelter, said market conditions remained poor, little or no improvement for low- and middle-income tenants in capital cities, and affordability conditions were poor in the regions.
"It is clear to the National Shelter that we need a national housing strategy to help improve the dire situation of far too many renters in Australia," he said.
"Compared to an improvement in the affordability of purchases, tenants are difficult. Although we have many housing markets in Australia, none of them are positive for renters. We need a multi-stakeholder commitment to improve the affordability of long-term leasing. "
Other Australian cities, including Sydney, have seen an improvement in the affordability of rents. In many cases, however, earnings have not reached low-income households.
"Looking below the numbers, rent stress affects the majority of very low-income households in Australia. Retirees and single parents are particularly affected, "said Andrew Cairns, CEO of Community Sector Banking.
Conny Lenneberg, Executive Director of the St. Lawrence Brotherhood, had a similar feeling, pointing out the challenges many Australians face in getting a decent home.
"High rents push the unemployed whose Newstart payments are very low in deeper poverty," she said. "Job seekers are forced to find adequate housing in the urban suburbs of our cities, which keeps them away from jobs and public transportation. The pressure on housing costs means that some tenants of Centrelink are pushed to roam. We must focus on Newstart and its very modest rent supplement. "
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