Rental Survey 2023: Too Damn High?
Three in Five Aussies Say Their Rent Is “Overpriced”
· 58.9% of renters say they feel their rent is overpriced
· 64.7% of women say they feel their rent is overpriced, compared with 52.9% of men
· 9% of renters spending 61% or more of their income on rent
· 33.9% say they feel their rent is “fair”
A nationally representative survey of Australians (n=1,000) conducted by Savvy has shown that almost two in five renters (59.2% of 392 renters) are spending over 31% of their weekly income on rent.
30% spend between 31%-45% of their income on rent; 20% of spend between 46%-60% of their weekly income on rent. 9.2% of renters say they are spending over 61% of their weekly income on rent.
Women are also disproportionately spending more on rent; only 3.8% of men are spending between 61%-75% of their income on rent, compared with 8.3% of women. There is also disparity in the 46%-60% band (17% of men vs 24% of women.)
This is potentially alarming, as the Australian Institute of Health and Welfare define households or individuals are under rental stress if they are spending more than 30% of their income on rent.
Compared with numbers from 2022, higher proportions of people are spending far more on rent, with 5.9% saying they spend between 61%-75% of their weekly income on rent, up from 4.3% in 2022.
3.2% say that they are spending over 76% of their weekly income on rent, up from 0.43% in our last survey.
Three in five say rent “overpriced”
58.9% of renters said that they feel their rents are “overpriced,” broken down into 64.7% of women and 52.9% of men.
33.9% say that their rent is “fair” while a mere 7% say their rent is a “bargain.”
The average median rent in Greater Sydney is $470 while the median weekly household income is $2,077 according to the latest data from the Australian Bureau of Statistics, which was taken in 2021.
This data was taken when inflation was tracking at RBA-standard levels and interest rates were at record lows of 0.1%p.a. The cash rate is now at 3.6%p.a., and inflation is at 7.8% (Dec Quarter 2022, CPI.)
Savvy spokesperson and finance expert Adrian Edlington says that the trend towards people paying rent in the extremes is concerning.
“Households devoting over forty-five percent or more of their income toward rent are in rental stress which can put a strain not only on finances, but people’s mental health and wellbeing. With utilities set to rise later this year, it could lead to an even greater cost of living crisis for renters in Australia, setting back plans for home ownership or other major asset purchases.
“Also, the fact that women are paying more than men is worrying. However, both men and women can agree that their rents are overpriced; and that may get worse as time goes on.”
If you are experiencing acute mental stress due to finances, contact Beyond Blue on 1300 22 4636 or Lifeline on 131 114.
For full survey report with graphics, click here.
About Savvy
Savvy is one of Australia’s largest online financial brokers, focusing on personal and commercial financial products. Founded in 2010, the firm has seen rapid growth, a testament to their provision of market leading rates and reaching customers with the latest in media and technology. Savvy is a proud supporter of Kids Under Cover, a charity assisting homeless and at-risk youth to strengthen their bonds to community and education. Savvy was named one of BRW’s fastest growing companies in 2015.
