Pavithra Mani (s3981109)
Dataset Overview: Analysis of annual rent changes in Sydney, Melbourne, Brisbane, and nationwide from March 2001 to March 2024.
Rent’s Role in CPI: Rent significantly influences the Consumer Price Index (CPI), reflecting cost of living variations.
Economic Insights: The data highlights how global events and local policies shape housing costs.
Objective: To explore the effect of rent fluctuations on economic strategies and personal finance management.
Data Source: Sourced from the Australian Bureau of Statistics’ Consumer Price Index section, which includes housing rent changes.Here is the link of the source, https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release
Time Frame & Scope: Covers March 2001 to March 2024, reflecting economic shifts over two decades in Sydney, Melbourne, Brisbane, and nationwide.
Analysis Objective: Aims to decipher rent movement trends for insights into housing market dynamics and living cost changes.
Research Importance: Vital for assessing the impact of economic policies, market trends, and global events on the housing sector.
# Read and clean the dataset
rent_data <- read.csv("/Users/apple/Downloads/R/Rents, annual movement.csv")
names(rent_data) <- trimws(sub("\\.+$", "", gsub("\\.+", " ", names(rent_data))))
# Print cleaned column names to verify
print(colnames(rent_data))## [1] "Rents annual movement" "Sydney" "Melbourne"
## [4] "Brisbane" "Australia"
# Convert data into a tidy format
rent_data_tidy <- pivot_longer(rent_data, cols = -`Rents annual movement`, names_to = "City", values_to = "Rent_Change")
# Assuming 'Rents annual movement' is the date column and is in a format like "Mar-01", which represents March 2001
rent_data_tidy$`Rents annual movement` <- as.Date(paste0("01-", rent_data_tidy$`Rents annual movement`), format="%d-%b-%y")
# Rename the column to 'Date' for easier referencing
names(rent_data_tidy)[names(rent_data_tidy) == "Rents annual movement"] <- "Date"This bar chart showcases the maximum increases and decreases in rental rates across Sydney, Melbourne, Brisbane, and the overall Australian market. Highlighting both the highest peaks and lowest troughs, the visualization provides a clear view of the extent of rent volatility over the years, aiding stakeholders in understanding the stability and risk within these urban rental markets.
# Calculate max and min rent changes for each city
peak_trough_data <- rent_data_tidy %>%
group_by(City) %>%
summarize(
Max_Increase = max(Rent_Change, na.rm = TRUE), # Handle missing data
Max_Decrease = min(Rent_Change, na.rm = TRUE) # Handle missing data
) %>%
gather(key = "Measure", value = "Rent_Change", Max_Increase, Max_Decrease) # Pivot data for easier plotting
# Create the bar chart
bar_chart <- ggplot(peak_trough_data, aes(x = City, y = Rent_Change, fill = Measure)) +
geom_bar(stat = "identity", position = position_dodge(width = 0.5)) +
labs(title = "Peak and Trough Rent Changes by City",
x = "City",
y = "Rent Change (%)") +
scale_fill_manual(values = c("Max_Increase" = "blue", "Max_Decrease" = "red")) +
theme_minimal()
# Display the plot
print(bar_chart)This heat map illustrates the yearly rent changes in Sydney, Melbourne, Brisbane, and the national average, using color gradients to represent the intensity of changes. Blue signifies decreases, white indicates stability, and red highlights increases. The visualization effectively displays patterns of rent volatility, helping to identify trends and anomalies in the rental market over time.
# Create the heat map
heat_map <- ggplot(rent_data_tidy, aes(x = Date, y = City, fill = Rent_Change)) +
geom_tile() + # Use geom_tile to create the heat map
scale_fill_gradient2(low = "blue", mid = "white", high = "red", midpoint = 0,
name = "Rent Change (%)") + # Color gradient
labs(title = "Heat Map of Annual Rent Movements",
x = "Date",
y = "City") +
theme_minimal() +
theme(axis.text.x = element_text(angle = 90, hjust = 1)) # Rotate x-axis labels for better readability
# Display the plot
print(heat_map)This stacked area chart depicts the cumulative percentage changes in rent for Sydney, Melbourne, Brisbane, and the national average. By layering each city’s rent changes over time, the chart highlights the overall growth or decline in rental rates, illustrating the long-term trends and the relative impact of economic factors on each city’s rental market.
# Assuming rent_data_tidy is already in the right format with 'Date', 'City', and 'Rent_Change'
# Prepare data for cumulative sum visualization
area_data <- rent_data_tidy %>%
group_by(City) %>%
arrange(Date, .by_group = TRUE) %>%
mutate(Cumulative_Rent_Change = cumsum(Rent_Change)) # Calculate cumulative rent change
# Create the stacked area chart
area_chart <- ggplot(area_data, aes(x = Date, y = Cumulative_Rent_Change, fill = City)) +
geom_area(alpha = 0.6) + # Use geom_area for the area plot
scale_fill_brewer(palette = "Paired") + # Use a color palette that is distinct and readable
labs(title = "Cumulative Rent Movement by City",
x = "Date",
y = "Cumulative Percentage Change in Rent") +
theme_minimal()
# Display the plot
print(area_chart)This box plot illustrates the distribution of annual rent changes for Sydney, Melbourne, Brisbane, and the Australian average. The plot highlights the median values, variability, and potential outliers, providing a clear view of the differences and similarities in rent dynamics across these cities.
# Create the box plot
box_plot <- ggplot(rent_data_tidy, aes(x = City, y = Rent_Change, fill = City)) +
geom_boxplot() +
labs(title = "Distribution of Annual Rent Changes by City",
x = "City",
y = "Percentage Change in Rent") +
theme_minimal() +
theme(legend.position = "none") # Remove legend as fill is redundant
# Display the plot
print(box_plot)Summary The analysis of rent movements from 2001 to 2024 across Sydney, Melbourne, Brisbane, and Australia highlights significant trends in rental volatility, growth, and sensitivity to economic conditions.
Recommendations
The reference to the original data visualisation choose, the data source(s) used for the reconstruction and any other sources used for this assignment are as follows:
Australian Bureau of Statistics. (2024, April 24). Consumer Price Index, Australia. Australian Bureau of Statistics. https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release
Reserve Bank of Australia. (2024, February 6). Overview | Statement on Monetary Policy – February 2024. Reserve Bank of Australia. https://www.rba.gov.au/publications/smp/2024/feb/overview.html#:~:text=At%20its%20February%202024%20meeting
REIA - Home. (n.d.). Reia.com.au. https://reia.com.au/
Commission, corporateName:Productivity. (2019, September 25). Vulnerable Private Renters: Evidence and Options - Productivity Commission Research Paper. Www.pc.gov.au. https://www.pc.gov.au/research/completed/renters
Australian Government. (2023). Housing policy | Treasury.gov.au. Treasury.gov.au. https://treasury.gov.au/housing-policy