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Rental Affordability

Income And Rents

Household income and rents have a very strong correlation (over 70%). The average percentage of weekly household income allocated to weekly rents for houses in just over 30%. Whilst rents in some markets exceed 40% of income, this is only the case in 10% of markets.

Some models have been published recently that predict a linear growth pattern for rents nationally. Given rising costs of living and limited budgets, I think these models are wrong.

The maps below are based on a statistical area 3 (Sa3) per state. Darker shades of blue represent lower affordability, which uses (a) weekly lease medians for houses as of June 2022 and (b) weekly household income based on Census 2021. A percentage is then calculated (a/b). Anything over 30% is considered a household under stress.

Correlation

Click on the dots to view the Sa3 region, median rent, household income and affordability (%).

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