Raymond Terrace rates high for ‘rental pain’

THE Suburbtrends ‘Rental Pain Index’ has been released for May 2024, painting a worrying picture of the escalating severity of the rental market crisis in Australia.

As rental prices continue to climb and homes remain scarce, the report highlights the urgent need for comprehensive solutions to alleviate the stress on renters throughout the nation.

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The Rental Pain Index (RPI) quantifies the level of difficulty faced by renters across Australian markets.

It incorporates vital metrics such as changes in rent prices, the scarcity of rental properties, vacancy rates, changes in these rates, and the proportion of income dedicated to rent.

By synthesizing these factors, the RPI provides a score ranging from one to 100 for various regions, where a higher score signifies more acute rental challenges, encompassing financial strains as well as the availability and suitability of rental accommodations.

On a national level, the May report indicates that 72.97 percent of locations across Australia are experiencing severe rental stress, as shown by high RPI scores.

The internationally accepted benchmark is that rent needs to be no more than 30 percent of a household budget to be affordable for people on low incomes.

According to the Suburbtrends data, across NSW rental prices have increased by an average of 10.55 percent in the past twelve months.

The average rental costs 33.17 percent of a household budget.

Locally, Raymond Terrace received a maximum score of 100 in the RPI.

While rental prices in the town have increased by only six percent, less than the state average, Raymond Terrace renters are spending on average 39 percent of their income on their lodgings.

The rental vacancy rate in the town is just 0.35 percent, compared to a NSW vacancy rate of 1.44 percent.

The Beresfield-Hexham area also listed among the worst 25 suburbs in the state for rental pain, recording rental price increases of nine percent in the past twelve months and a 0.62 percent rental vacancy rate.

Kent Lardner, founder of Suburbtrends, said this month’s data signals a “looming reckoning for the political class who have long neglected the growing distress of the renter class”.

“The barriers to homeownership are especially daunting for first-time buyers without familial financial support, leaving shared equity schemes in capital cities as one of the few remaining options – yet many will still find these schemes out of reach.”

“Our immediate focus must be on implementing emergency accommodations and creating incentives for homeowners to offer underutilised properties for rent.

“These measures are crucial stopgaps that can provide some relief in the short term.”

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