A report on average rental prices in Australia shows that the suburbs are getting too pricey for many Australians.
Australians who are renting their homes in the cities are being left with no choice but to find new dwellings away from the suburbs due to high renal rates, a report called Rental Affordability Index revealed. According to News.com.au, rental prices are skyrocketing everywhere especially in key cities but the brunt of the problem is largely felt in Sydney where people need to allot as much as 90 percent of their wages for rentals.
The index is the first of its kind commissioned by the country to monitor the changes in rental prices and how they affect renters. The suburbs which used to offer affordable rental spaces are now priced so high that people living on minimum wages find it impossible to pay for and thus many are forced to move out. Renters in Sydney are the most affected by the skyrocketing rentals and that is based on the 28 percent average share of their salaries they allot for lease money. Renters in Perth and Brisbane are the least affected as rates are pretty stable and they currently pay the lowest rents. However, families with low incomes in NSW are the hardest hit since the rent they pay eat up about 65 percent of their earnings. In South Australia, low income households shell out 59 percent of their pay.
Meanwhile, in a report by Daily Mail, record drops in auction clearance rates in the last few months is seen as likely the sign that the Australian real estate boom has reached its peak and is now stabilizing to more reasonable rates for home buyers and renters. The slowdown may be beneficial to would-be buyers but experts say it could affect the overall performance of the industry as it will likely mean single figure growth next year.