Townsville rents have shot up $120 since 2020 as Queensland rental affordability hits a new low, new data has found.
Townsville rents have shot up $120 since 2020 as Queensland rental affordability hits a new low, new data has found. The PropTrack Rental Affordability Report showed the median rent in Townsville was sitting at $460 per week. Report author and PropTrack senior economist Angus Moore said this was a 35.3 percent increase compared to March 2020.
Mr Moore said across Queensland rental affordability had declined since 2021 and was sitting at its lowest level on record, significantly worse than the last time conditions were challenging in the early 2010s. “A household earning a median household income of $107,000 per year could afford to rent just 32 percent of properties advertised across Queensland, the smallest share of rentals in at least 17 years, when records began,” he said.
Mr Moore said the sharp deterioration in rental affordability followed a period of reasonably favorable affordability during the six years from 2014-15 to 2020-21. “Over that period, median advertised rents increased at a rate of 2.1 percent per year – marginally slower than growth in typical household incomes,” he said. “But since December 2020, median advertised rents in both Brisbane and regional Queensland have surged 45 percent, far outstripping growth in incomes. “Even over the past year – when rents grew at their slowest pace since 2020 – rents still increased 9.1 percent in Brisbane and 11.5 percent in other parts of Queensland.”
Mr Moore said nationwide, surging rents had resulted in rental affordability sitting at its worst level in at least 17 years. “Over the six months to December 2023, households across the income distribution could afford to rent the smallest share of advertised rentals since at least 2008, when our records began,” he said. “That is a substantial change from conditions before and during the pandemic. “The deterioration in affordability has been driven by the significant increase in rents that we’ve seen since the pandemic, which wages have not kept pace with. “Rents nationally are up 38 percent since the start of the pandemic.” The report found just 39 percent of Australian properties advertised for rent on realestate.com.au from July to December 2023 were deemed affordable for a typical-income household, earning roughly $111,000 and spending 25 per of their income.
“Renters in New South Wales, Tasmania and Queensland face the worst affordability,” Mr Moore said. “A typical-income household can afford just 28 percent of rentals advertised in New South Wales.” Mr Moore said a household earning $49,000 per year – the 20th percentile of income – would essentially not be able to afford any advertised rental properties. “This highlights the importance of rental support for low-income renters, such as Commonwealth Rent Assistance,” he said. “Longer term, increasing the availability and supply of rentals is critical to improving affordability. “Rents are growing quickly because rentals are extremely scarce at the moment, with incredibly low rental vacancy rates around the country. “The only way to solve that, sustainably over the long term, is to have more rentals where people want to live. “And that means building more homes.”