RENTAL STRESS: 2.72 MILLION AUSSIES AT RISK ACCORDING TO SURVEY
According to a recent national poll commissioned by Savvy, 7.4% of Australians (out of a total 23.28% who report that they rent their house) spend 31% to 45% of their income on rent. More alarmingly, 5.8% state that they are devoting 46% to 60% of their income towards renting.
Based on the most recent statistics, this suggests that 1.42 million Australians are in some form of rental stress, and 1.1 million Australians are under severe rental stress. When added together, the total number of Australians spending 30% or more of their income on rent is 14%, or a possible 2,719,000 people nationwide.
According to the Australian Institute of Health & Welfare, a household or an individual is said to be under rental stress if they spend more than 30% of their income on housing.
Younger Gen’s Big Stress Point
In the poll, people aged 18 – 64 said that in the months and years ahead, they are concerned about rent or expected rent increases.
As the number of young people grows concern about rent hikes, home ownership becomes farther and farther out of reach – and it’s not just a financial issue, according to Savvy CEO Bill Tsouvalas.
He said, “Rental stress isn’t just being a bit worried about a lack of money for luxuries, it’s a real and persistent financial pressure that affects your ability to pay for necessities… it can take a toll on your wellbeing, and never really goes away. Renters may be on edge already due to rising costs of living. They may be behind the eight-ball due to COVID-19 lockdowns, reduced hours, and layoffs. A sudden excess payment, repair bill, or urgent appliance replacement could set them on the edge of real financial hardship – or put them in that position almost overnight.”
Beyond trying to find a cheaper space for rent that suits your capacity, you may contact Beyond Blue at 1300 22 4636 or Lifeline at 131 114 if the stress is already affecting your mental health.