More than 55% of Australian renters feel they’ve been ignored by the 2023-24 Federal budget, with a further 25% saying the measures are at least a start to addressing the current rental crisis, but simply don’t go far enough.

** A quick shoutout*
Huge thanks to everyone who filled out our May Renter Survey! 2,500 is no small feat. We were blown away by the number of responses in such a short time. Stay tuned for our next survey on the Rent.com.au blog—we’re keeping the momentum going! Got a killer question? Shoot our team an email and let us know. Thanks – the Rent.com.au team 🙌

In a national survey of 2,500 renters run across 10-11 May, Rent.com.au asked its customers to consider the May Federal budget and how the announced measures addressed the rental crisis.

You might also like:
> What’s in the 2023 Federal Budget for renters?
> Rent assistance increase falls short of call for ‘bolder action’: Tenants Victoria
> Surviving the rental market crisis: Tips for a successful application

Initiatives in this year’s budget included a raise in the rent assistance cap, an increase in the supply of social and affordable housing, tax incentives to promote build-to-rent, and an expansion of the Home Guarantee Scheme to permit joint applications from friends and family.

What we asked:
Do you think the 2023-24 Federal budget has done enough to address the ongoing rental crisis of escalating rents and limited availability?

The survey response was fantastic. In less than two days we had over 2,500 renters from all states and territories share their views. Additionally, we also asked respondents what age group (generation) they represented.

So how do Australia’s renters feel the announced measures landed?

Generation
Survey responsesGen ZMillennialsGen XBaby BoomersSilent GenerationAll Renters
There was a budget?33%23%15%11%11%18%
Nothing for renters, we’ve been left out50%55%59%50%45%55%
It’s a start, but I’d like to see more15%20%25%36%29%25%
It’s good news. Bring it on!2%2%2%2%15%2%

Taking a closer look at the results, it’s interesting to note that Gen Z renters seemed to have the least awareness about this budget release. Some 50% of this generation strongly felt that the government’s measures offered nothing for renters, lining up with the sentiment expressed by Baby Boomers.

Among all the age groups, Gen X renters were most likely to agree with this viewpoint (59%). The survey also revealed that Baby Boomers were most inclined to see the increase in rent assistance caps as a positive step, considering it a small but significant starting point.

It’s a market hit by hard and fast price rises.

According to data from Rent.com.au, rental prices across the country’s four biggest capitals have risen by up to 35% in the past two years, leaving many residents struggling to pay bills and unable to afford places to live.

With rental prices stubbornly high and the cash rate rising, life for Australia’s renters has never been more challenging. Let’s look at the change to median rent across Australia’s biggest four cities in the last two years.

We know it’s tough out there. When we look at the changes in median rental prices, it’s clear that Australia’s biggest cities have seen some major rent increases over the past two years.

HOUSESApril 2021 – April 2022April 2022 – April 2023Over the last 2 years
Sydney, NSW13%17%30%
Melbourne, VIC5%12%16%
Brisbane, QLD15%10%25%
Perth, WA10%17%27%
Adelaide, SA3%2%5%
Canberra, ACT12%-3%8%
Hobart, TAS12%10%22%
Darwin, NT15%0%15%
APARTMENTSApril 2021 – April 2022April 2022 – April 2023Over the last 2 years
Sydney, NSW6%29%35%
Melbourne, VIC7%21%28%
Brisbane, QLD7%20%27%
Perth, WA8%19%27%
Adelaide, SA10%2%12%
Canberra, ACT8%2%10%
Hobart, TAS7%17%24%
Darwin, NT25%19%44%

Sydney has recorded the highest rent surge for houses and apartments, experiencing a remarkable 30% and 35% jump, respectively over the last 24 months.

Melbourne’s apartment market has also felt the heat, while Brisbane and Perth have seen significant rent growth for both property types. This data is just one of many indicators showing the mounting cost of renting and the genuine affordability concerns tenants face in today’s market.

Comments attributable to Rent.com.au CEO Greg Bader

“We appreciate the government’s efforts to address the rental crisis by providing additional relief to low-income households – it’s a good start,” Mr Bader said.

“But we have over 32% of our population renting, and as you can see from the data, most have experienced a 25-30% increase in renting costs over the last two years. This is largely driven by some of the lowest vacancy rates our market has ever seen, so availability and cost are significant challenges for most renters, not just low-income earners.”

“We know it’s not an easy fix and there is a level of causality in needing immigration to address staff shortages that will allow more housing to be built. The budget allocation for more social and affordable housing and further encouraging build-to-rent are all positives – I guess the feedback we are getting is that these measures feel a long way off, people are seeking support now.”

1 COMMENT

  1. It is disgusting! Not everyone is on the doll. I rent. Where is my rental assistance? Why has the federal government forgotten all middle-income groups? Why hasn’t anything been done by the government about these constantly rising costs of rent? My owner is a company, and they have increased my rent, which is not affected by interest rates. Do your job, NSW Government! Chris Minns, keep your promises.

LEAVE A REPLY