Home Insights Renters’ paradise or paradise lost? Where tenants far outnumber owners

Renters’ paradise or paradise lost? Where tenants far outnumber owners

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Stringent rental conditions are currently affecting renters across the country, Advertising rents up 10% or more in the year to September – However, some regions are particularly affected.

The spread of renters across our suburbs is uneven. Looking at the 2021 Census data, we can identify the areas where the majority of households rent.

It’s Rental Heartland that feels more threatened than ever.

rental housing

Suburbs, where the majority of households rent, will feel the biggest impact of the rent crisis. Photo: Getty.

In some areas renters outnumber owners

In many urban centers across the country, more homes are owned by renters than by owners.

This includes downtown Melbourne, Sydney, Brisbane and Adelaide. Nationwide, about 30% of households pay rent, so this represents a significant demographic difference from the Australian-wide baseline.

Renters make up the largest proportion of households in the SA3 area in central Melbourne [1]almost two-thirds of the houses are rented.

These urban dwellings are mostly apartments and tend to be occupied by young people with a median age in their early thirties. This compares with the median age across Australia of her 38.

Areas with a high renter share also tend to have smaller household sizes, with less than 2 in central Tokyo compared to 2.5 nationwide. The proximity to universities and his CBD makes these neighborhoods favorable to college students and early career his workers.

Rents in these areas tend to be higher due to prime locations in the middle of big cities. Median city center rent was highest in Sydney at $550 a week, all above the national median of $375.

However, in many areas, especially mining areas, renters outnumber homeowners. This often reflects their short tenure in these locations. For example, a few years of work in an area are unlikely to make a purchase.

These are the areas that will feel the pressure of the rental crisis the most.

Search the map below to compare housing rental shares across the country.

Rents are rising rapidly due to strong housing demand and the normalization of cities after COVID-19.

Inner-city rents fell during the pandemic as demand from overseas migration stopped almost overnight.

Tenants have taken advantage of this opportunity to spread out into smaller household units, especially during lockdowns. This has increased the number of rental properties needed to accommodate Australian renters.

Over the past year, however, rental demand has rebounded strongly as demand surged against a backdrop of migration, students returning to in-person learning and a return to normal activity in urban areas.

Combined with rising interest rates that make buying difficult for many, the pressure on rents, especially in inner-city areas, is very strong heading into 2023.

Unfortunately, these rental pressures unlikely to weaken soon.

[1] The SA3 region is defined by ABS and generally has 30,000 to 130,000 people. In cities they often correspond to local government areas.

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