Rental-Insights-A-COVID-19-Collection - Flipbook - Page 39
RENTAL INSIGHTS:
TENANT SATISFACTION
What is the relevance
to Australian policy?
While rents are cheaper in outer areas,
perceptions of unaffordability are greater.
Several Australian and state government
policies aim to increase the supply of
dwellings in central locations and/or
reduce the impact of affordability stress.
Reasons for this outcome are complex,
but for some lower-income households
paying more than 30 per cent of income
on rent is not necessarily detrimental to
their wellbeing.
Yes, rent is unaffordable (Up to $31,000)
Yes, rent is unaffordable ($31,000-59,000)
Rent >30% (Up to $31,000)
Rent >30% ($31,000-59,000)
50%
100%
40%
80%
30%
60%
20%
40%
10%
20%
Rent is >30% of household income
2. While most of the lower-income
households are paying a large
proportion of their income on rent,
many of these do not perceive their
rent as unaffordable (some due to
Rent Assistance).
As a result of COVID-19, have you felt higher levels of loneliness or isolation?
Yes, rent is unaffordable
1. Without targeted supply and
access to new (central) dwellings,
these are not available to lowerincome households. The policy
focus on affordability in outer
parts of Melbourne and Sydney is
considerably less. While rents are
cheaper in outer areas, perceptions
of unaffordability are greater.
38
0%
0%
5
10
15
20
25
30
35
40
45
50
Distance to CBD (kms)
Note 1: Estimated incidence of rental stress broadly in line with previous research (Hulse, Reynolds et al. 2019).
Note 2: The ABS divide household income into 5 quintiles (Q). Based on the inflation adjusted 2017/2018 Australian household income distribution, ‘lower
income’ described here approximates Q1 (‘very low-income’) and Q2 (‘low- income’).
