The affordability of rental properties in Hobart and surrounds has nosedived to its lowest point in six years, the latest figures from the Rental Affordability Index found.
Yet another damning report has further cemented Hobart’s title as the most unaffordable capital city in the country, with Hobart, Sandy Bay, North, West and South Hobart, Kingston and Margate rated as unaffordable for median households on an average wage, while New Town and Lenah Valley also fast becoming unattainable.
The disparity between soaring rent prices and stagnating wages, coupled with a shortage of properties on the rental market in the Tasmanian capital, has caused affordability to slip by a further 12 index points in the past two years.
Hobart scored 101 on the rental affordability index (RAI) in the June quarter of this year, meaning most households are devoting at least 30 per cent of their income to keeping a rented roof over their head.
“Greater Hobart continues to be the least affordable capital city in Australia,” the report read.
“Rental affordability has dropped considerably over recent quarters in Hobart, reaching a RAI of 101 in June 2018. On average rents in metropolitan Hobart are now unaffordable even to the median rental household.”
Sydney (RAI 113) was the second most unaffordable followed by Adelaide (114), Brisbane (123) and Melbourne (127).
‘Half of Hobart tenancies experiencing rental stress’
With a rising poverty line, the issue is not one that is confined to those on welfare, but one that is increasingly impacting middle Australia.
The Brotherhood of St Laurence’s executive director, Conny Lenneberg, estimated half of all tenancies in Hobart are experiencing rental stress.
“[There is a] thin financial buffer that throws [people] into absolute crisis from living on the edge and just managing,” she said.
Hobart scored 101 on the rental affordability index in the June quarter of this year, meaning most households are devoting at least 30 per cent of their income to keeping a rented roof over their head.
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