LGAs with the Highest Rental Pain Index

This report analyses the rental affordability challenges in the top 10 Local Government Areas (LGAs) with populations of 20,000 or more, based on the Suburbtrends Rental Pain Index (RPI). The RPI measures rental stress by considering factors such as the percentage of income spent on rent, rental increases, and vacancy rates. This analysis highlights the worst-affected suburb areas (SA2s) within these LGAs and provides insight into the population changes between 2022 and 2023 (ABS data), further emphasising the pressure on the rental markets in these regions.

Murray Bridge, South Australia, saw a population increase of 190 residents between 2022 and 2023. The central Murray Bridge SA2 is particularly impacted, with a median RPI of 98.98. The area has experienced a median 12-month rental increase of 8.5%, and rental affordability has become a significant issue, with residents spending 34.7% of their income on rent. The vacancy rate in this SA2 is low at 1.2%, indicating high demand and limited availability, further exacerbating rental stress.

In South Burnett, Queensland, the population grew by 177 residents over the year. The Kingaroy SA2 is the most affected, with a median RPI of 96.85. Rents in this area have increased by a median of 7.9% over the past 12 months, and residents are now spending 33.5% of their income on rent. With a vacancy rate of just 1.0%, the tight rental market in Kingaroy is putting significant pressure on affordability.

Kiama, New South Wales, experienced an influx of 375 new residents between 2022 and 2023. The Kiama SA2, covering the main town and surrounding areas, is under severe rental stress, with a median RPI of 96.32. The median 12-month rental increase in this SA2 is 6.7%, and rental affordability is strained, with residents dedicating 36.2% of their income to rent. The low vacancy rate of 0.9% reflects the high demand and limited housing availability in this popular coastal area.

Alexandrina, South Australia, saw its population grow by 484 residents over the year. The Goolwa - Port Elliot SA2 is the worst-impacted area, with a median RPI of 96.16. In this SA2, the median 12-month rental increase is 7.1%, and rental affordability is a significant concern, with residents spending 35.8% of their income on rent. The vacancy rate is very low at 0.8%, highlighting the limited availability of rental properties in this desirable location.

Bundaberg, Queensland, experienced a population increase of 1,301 residents between 2022 and 2023. The Bundaberg Central SA2 is particularly stressed, with a median RPI of 96.09. The median 12-month rental increase in this area is 8.9%, and rental affordability is increasingly problematic, with residents spending 37.4% of their income on rent. The vacancy rate of 1.3% indicates a tight rental market, driving up prices and adding to the affordability challenges.

Lismore, New South Wales, saw an increase of 469 residents over the year. The central Lismore SA2 is facing significant rental stress, with a median RPI of 96.05. The area has experienced a median 12-month rental increase of 9.2%, and rental affordability has worsened, with residents spending 36.5% of their income on rent. The vacancy rate in this SA2 is 1.5%, reflecting the ongoing demand and limited housing supply, particularly in the aftermath of recent natural disasters.

In Harvey, Western Australia, the population grew by 569 residents between 2022 and 2023. The Harvey SA2, encompassing the main town and surrounding areas, is the most affected, with a median RPI of 95.56. The area has seen a median 12-month rental increase of 7.5%, with residents now spending 34.9% of their income on rent. The vacancy rate stands at 1.1%, indicating strong demand and a constrained rental market, leading to increased affordability pressures.

Greater Dandenong, Victoria, experienced a population increase of 2,057 residents over the year. The Dandenong SA2 is the most impacted area, with a median RPI of 94.73. The median 12-month rental increase in this SA2 is 10.3%, making it increasingly difficult for residents, who are now spending 39.2% of their income on rent, to afford housing. The vacancy rate of 1.4% highlights the ongoing demand and limited rental supply in this diverse urban area.

Busselton, Western Australia, saw its population grow by 1,275 residents between 2022 and 2023. The central Busselton SA2 is under significant rental pressure, with a median RPI of 93.47. The area has experienced a median 12-month rental increase of 7.8%, with rental affordability becoming a major issue as residents spend 35.7% of their income on rent. The vacancy rate is low at 1.0%, reflecting the strong demand and limited housing availability in this popular coastal town.

Wangaratta, Victoria, experienced a population increase of 356 residents over the year. The Wangaratta SA2, covering the main urban area, is facing rental stress, with a median RPI of 93.36. The median 12-month rental increase in this area is 7.6%, and rental affordability is a growing concern, with residents spending 34.5% of their income on rent. The vacancy rate in this SA2 is 1.2%, indicating a tight rental market and increasing pressure on affordability.

In conclusion, the analysis highlights significant rental affordability challenges across these top 10 LGAs, exacerbated by the cost-of-living crisis, population growth and limited housing supply. The Suburbtrends Rental Pain Index provides a crucial measure of these pressures, revealing the severe impact on residents in both regional and urban areas. The data underscores the urgent need for strategies to address housing affordability in these high-stress regions.

SA2 Market Insights (including Rental Pain Index) is an indispensable resource for understanding the intricacies of local property markets. It offers a blend of rental stress analysis and comprehensive market intelligence, empowering LGAs, researchers and real estate consultants to make informed, data-driven decisions. First-time customers are invited to a personalised consultation to guide you through the product and address any queries. If you work within an LGA and are interested in an evaluation copy (available at no cost), please contact Kent Lardner on 0458 936 912