Renting in Greater Hobart has become unaffordable even for average income earners with a lack of housing supply partly to blame.
The finding was contained in the recently released 11th annual National Shelter-SGS Economics and Planning Rental Affordability Index, which compares rents to incomes.
It found the city’s affordability declined by 1% in the past year due to a lack of rental housing and a low share of medium and high-density homes which are more affordable to smaller households.
The Index found that even average earners are on the cusp of rental stress; the median rent of $520 will take up 28% of an annual household income of $95,803.
Launceston, Devonport and Burnie are classed as ‘unaffordable’ while ‘acceptable’ rents are confined to smaller towns like Queenstown and St Helens.
The report says affordability remains serious for low-income households; those on JobSeeker, pensions and single parents working part-time face ‘extremely’ or ‘severely unaffordable’ rents.
HOBART’S HIGH COST
“The high cost of rent is forcing families to skip meals, pushing people on low and moderate incomes into homelessness and preventing women and children from escaping family and domestic violence,” said Shelter Tas Acting CEO Dr Lauren McGrow.
“Homelessness services are reporting that even workers and families who have never struggled before cannot find an affordable place to call home.
“We must urgently build more social and affordable homes to take pressure off the private housing market, and strengthen renters’ rights,” she says
SGS Economics & Planning Senior Associate Kishan Ratnam says “Hobart’s renters are pa[id] only 10% less than their Melbourne counterparts even though their incomes are 22% lower”.
“All areas within Hobart are ‘moderately unaffordable’ or worse, unlike Melbourne and Sydney, which retain small clusters of ‘acceptable’ rents on their outer fringes,” he says.
“Rising rents are likely driven by an insufficient supply of rental housing and by Hobart’s low share of medium-and high-density dwellings.”
The report found that even for a couple both earning minimum wage, Hobart rents were ‘moderately unaffordable’.
Dan McKenna, CEO of Housing All Australians, says the economic impact of the rental crisis on the state is major and negative.
“When workers cannot find an affordable place to live, this holds back Tasmania’s productivity and prosperity,” he says.
“When housing policy becomes a political football, businesses and workers pay the price.
“Stability and consistency – regardless of the party in government – will give industry the confidence to invest and help ensure that homes are built where they are needed most.”
OTHER CAPITAL CITIES
Melbourne rentals stable at record lows
