Rising rent crisis makes Perth Australia's most unaffordable city

Rent

Key, money, housing crisis Source: Moment RF / Kinga Krzeminska/Getty Images

Despite stable interest rates, rental pressures remain unchanged across Australia especially in capital cities, households still have to spend almost a third of their income paying for a place to live.


The worst-hit affordability situation occurred in Perth, now the country's least affordable capital city, recording a four per cent drop in affordability surpassing last year's record low.

A single Mother in Perth demonstrates this extreme struggle, where her weekly rent jumped from $380 per week to $850 per week.
Now her house rent has exhausted her entire Centrelink allowance, and forced her to rely on parental help and ditch the thought of saving.

The pressure is not confined to Perth alone; Sydney are also feeling the same weight strongly.

A single mother, allocating $1,200 of her two-week earnings of $2,000 directly for rent, highlights the financial vulnerability for women who lack family support within the property market.

Rental property in Australia
Source: AAP
The latest Rent Affordability Index from National Shelter confirms that solutions need to come from every level of government. John Engeler of National Shelter called for intervention through build-to-rent schemes and national rental legislation.

In addition to families, the impact of the rental affordability crisis is also being felt by businesses, who have difficulty attracting staff due to a lack of affordable housing near their workplaces.

While Western Australia's Housing Minister referred to major housing investment, and the Federal Government argued it was boosting supply through a national housing fund, for renters, the long-term promise did not overcome the current uncertainty.

With the end of the lease term and intense competition, eviction became a very real possibility for many.

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