Investigating the Rental Crisis in Australia

• Objective: To understand the underlying causes of the current rental crisis in Australia.
• Key Focus Areas:
  • Rental Price Changes: Analyze trends in rental prices and their impact on affordability.
  • Income to Rent Ratio: Examine the ratio of weekly income to rent across different regions to understand affordability issues.
  • Population Growth: Assess the role of population growth, including immigration, in influencing rental demand.
  • Housing Supply: Investigate the impact of housing supply shortages on the rental market.
• Importance: Identifying the root causes is crucial for developing effective solutions to ensure affordable housing for all Australians.

• Strongest annual rise in rental prices since 2009, with a 7.8% increase reflecting a tight rental market.
• Despite a temporary dip in rental price growth in 2020 due to the COVID-19 pandemic, rental prices have since increased significantly across all capital cities in Australia.

• Analysis of the weekly income to rent ratio for capital cities reveals values exceeding 0.5, highlighting the critical affordability issues faced by residents.
• The elevated ratio underscores the strain on household budgets and the growing challenge of securing affordable rental housing.

• Examination of population data shows a consistent increase over the years, with a slight uptick post-COVID.
• Despite this population growth, the sharp rise in rental prices appears to be disproportionate, suggesting that factors beyond population growth are influencing the rental market.

• The number of dwellings completed per million people has been declining, particularly post-COVID.
• This decline in housing supply is a significant factor contributing to the rental crisis, as the demand for rental properties outpaces the availability of new housing.

• The current rental crisis in Australia is characterized by high rental prices and significant affordability issues.
• While population growth due to immigration has played a role, the primary driver of the crisis appears to be the shortage of housing.
• To mitigate this crisis, a concerted effort to increase the construction of new dwellings is essential. Addressing the housing supply shortage is critical to ensuring affordable rental options and alleviating the pressures on the rental market.

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Australian Bureau of Statistics. (2023, May 2). New Census insights on income in Australia using administrative data. ABS. https://www.abs.gov.au/articles/new-census-insights-income-australia-using-administrative-data.

Australian Bureau of Statistics. (2019-20). Household Income and Wealth, Australia. ABS. https://www.abs.gov.au/statistics/economy/finance/household-income-and-wealth-australia/latest-release.

Australian Bureau of Statistics. (2023, December). Building Activity, Australia. ABS. https://www.abs.gov.au/statistics/industry/building-and-construction/building-activity-australia/latest-release.

CoreLogic. (2024, Jan 23). Australia’s median rent hits new record, surpasses $600 per week https://www.corelogic.com.au/news-research/news/2024/australias-median-rent-hits-new-record,-surpasses-$600-per-week.

Dr James Baglin (2024). Data Visualisation Chapter 8: Adding Interactivity [PowerPoint slides]. Canvas@RMIT University. https://rmit.instructure.com