The Best Place To Be A Tenant In Australia Where Median Rent’s More Affordable Than Last Year
05th Sep 2018
QUEENSLAND is now the best place in the country to be a tenant, with the state pulling the Australia’s biggest improvement in rental affordability in the past year.
In a win for renters, the latest Adelaide Bank/REIA Housing Affordability Report out today found tenants here were spending less of their weekly income on rent now than the same time last year.
It found 22.2 per cent of family income was used to meet median rent, which was 0.9 percentage points over the quarter and 0.8 percentage points less than the same time in 2017.
That result was just ahead of NSW (0.7pp fall), Western Australia and Northern Territory (0.5pp decrease), while renters were finding it harder in Tasmania (1.8pp rise), ACT (0.7pp), Victoria (0.2pp) and South Australia (0.1pp).
REIA President Malcolm Gunning said Queensland was the best place to be right now for renters, but that could apply to buyers too if new jobs plans went ahead.
He said much of the construction boom centred around inner Brisbane and the Gold Coast was aimed at investors “and they’re all looking for tenants”.
He expected renters to see even better gains going forward given the size of the building supply pipeline.
“It will get better. The rental market is a fluid market, it’s all about supply and demand.”
Mr Gunning expected to see more southerners make the move north — not just as renters, but also as buyers.
The median rent paid in Queensland is about $375.85 with the median home loan repayment at $475.73 a week.
“There is no doubt that southern families would move to Queensland because it’s all about affordability and it’s much less congested than Sydney and Melbourne, but they need work,” he said.
“If infrastructure plans get off the drawing board it will attract people out of Sydney, Melbourne and other parts of the country too.”
According to the report housing affordability went backwards in the past year by 0.8pp with the proportion of household income needed to meet home loan repayments rising to 28.2 per cent.
That was still almost 10pp better than what buyers were seeing in Sydney (38.1 per cent) and way below the Australia wide figure of 32.2 per cent.