Last week I published a show titled “The rental stress pips are squeaking” where I did a deep dive into rising rental stress across the country, to underscore the crisis we have in the rental sector. I called it the hidden crisis, because we get massive coverage of mortgage stress in the mainstream, media but rental stress not so much.
To underscore the crisis, new modelling from Impact Economics and Policy, a group of expert economists and policy specialists, estimates that back in 2022, as many as 3.2 million people were at risk of homelessness across the country, where one negative shock could result in them losing their home. This represents a 63% increase between 2016 and 2022 in the number of Australians at risk of homelessness.
A recent survey showed that 39% of Specialist Homelessness Services had to close their doors to people seeking help because they were unable to cope. With the homelessness services unable to cope despite the increase in people needing help, not enough are being assisted, and many are not even seeking help because they know they won’t get through.
Now, SGS Economics and Planning has release the tenth edition of the Rental Affordability Index (RAI) today, which shows that since 2015, rental affordability has declined in most cities, limiting where people can live and work and reshaping communities nationwide. Once affordable areas like South West Sydney and South East Melbourne are now increasingly out of reach for average rental households. Their analysis based on a different approach aligns with what I have been reporting.
The report lands as the Albanese government struggles to get support to pass two key housing bills, dismissing a last minute offer from the Greens as more about politics than progress.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
Homeless; Renters Punished And Perth Is Worse Than Sydney!
Last week I published a show titled “The rental stress pips are squeaking” where I did a deep dive into rising rental stress across the country, to underscore the crisis we have in the rental sector. I called it the hidden crisis, because we get massive coverage of mortgage stress in the mainstream, media but rental stress not so much.
To underscore the crisis, new modelling from Impact Economics and Policy, a group of expert economists and policy specialists, estimates that back in 2022, as many as 3.2 million people were at risk of homelessness across the country, where one negative shock could result in them losing their home. This represents a 63% increase between 2016 and 2022 in the number of Australians at risk of homelessness.
A recent survey showed that 39% of Specialist Homelessness Services had to close their doors to people seeking help because they were unable to cope. With the homelessness services unable to cope despite the increase in people needing help, not enough are being assisted, and many are not even seeking help because they know they won’t get through.
Now, SGS Economics and Planning has release the tenth edition of the Rental Affordability Index (RAI) today, which shows that since 2015, rental affordability has declined in most cities, limiting where people can live and work and reshaping communities nationwide. Once affordable areas like South West Sydney and South East Melbourne are now increasingly out of reach for average rental households. Their analysis based on a different approach aligns with what I have been reporting.
The report lands as the Albanese government struggles to get support to pass two key housing bills, dismissing a last minute offer from the Greens as more about politics than progress.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Following my live show on Tuesday I had a number of requests for mapping of the Rental Stress story across the country. So in this show we look at the distribution of rental stress both in count and percentage terms, based on DFA modelling and surveys.
Live show was here: https://youtu.be/c8rTWEEw2KU
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Following my live show on Tuesday I had a number of requests for mapping of the Rental Stress story across the country. So in this show we look at the distribution of rental stress both in count and percentage terms, based on DFA modelling and surveys.
Live show was here: https://youtu.be/c8rTWEEw2KU
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
This is the second in a series of posts showing our latest mapping of rental stress. For our methodology see our recent live show https://youtu.be/YIl4sh-WxIA
Part 1: Default Risk Mapping https://youtu.be/JSk0I7n-gXI
In today’s show we deep dive on the rental stress across the country. The results are not pretty.
Next time, we will look at property investor stress – the Ying to Yang of rental stress!
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Domain has released its Rental Report for March, which delivered more bad news for tenants, on top of the data I released recently which showed three quarters of those renting already have cash-flow issues. Younger families and first-generation Australians are being hit really hard, but as I discussed in my live show, other household categories are also being caught in the rental squeeze. And despite the rise in rents, some investors are selling due to poor net returns.
With net overseas migration forecast to remain historically high, albeit lower than last year, Australia’s rental crisis will continue, even if vacancy rates and rental inflation ease a little.
As a result, more Australians will be plunged into rental stress, group housing, or homelessness.
The solution is to cut net overseas migration hard to a level well below the nation’s capacity to build homes and infrastructure.
The other factor no one is talking about is that renters under extreme pressure are being coerced into buying property, even if its poor quality or in the wrong area, just to exit the rental sector and try to get some control. With borrowing power down about 40-50%, these households are leveraging up, as see by the larger loan balances against income. But this could be an issue of jumping from the frying pan into the fire!
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
Digital Finance Analytics (DFA) Blog
Tenants Caught In The Python-Like Property Squeeze Have To Pay More!
Domain has released its Rental Report for March, which delivered more bad news for tenants, on top of the data I released recently which showed three quarters of those renting already have cash-flow issues. Younger families and first-generation Australians are being hit really hard, but as I discussed in my live show, other household categories are also being caught in the rental squeeze. And despite the rise in rents, some investors are selling due to poor net returns.
With net overseas migration forecast to remain historically high, albeit lower than last year, Australia’s rental crisis will continue, even if vacancy rates and rental inflation ease a little.
As a result, more Australians will be plunged into rental stress, group housing, or homelessness.
The solution is to cut net overseas migration hard to a level well below the nation’s capacity to build homes and infrastructure.
The other factor no one is talking about is that renters under extreme pressure are being coerced into buying property, even if its poor quality or in the wrong area, just to exit the rental sector and try to get some control. With borrowing power down about 40-50%, these households are leveraging up, as see by the larger loan balances against income. But this could be an issue of jumping from the frying pan into the fire!
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
We look at the rental crisis which is full swing across the country. Unfortunately, the data shows things are getting worse – when one in three households are renting, and new rents are up by more than 10%.
We look at the latest trends and discuss what is really going on.
It reeks of policy failure!
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
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A deep dive into rental stress across Australia, as more households wrestle with costs of living and rising rents. There is simply not enough focus on the 2 million households struggling with meeting rental payments, as real incomes are eroded by higher inflation. Go to the Walk The World Universe at https://walktheworld.com.au/
As requested following our recent mapping analysis of mortgage stress, here is a series of maps relating to rental stress – again measured in cash flow terms.
Overall more than 2 million households have fallen into rental stress, and they are concentrated in a range of specific suburbs.
Go to the Walk The World Universe at https://walktheworld.com.au/
