Rental stress is down in the Northern Territory
The number of Territorians experiencing extreme rental stress has dropped but tenants in 10 NT suburbs are still under extreme pressure, new market analysis has found.
The August Rental Pain Index by Suburbtrends found the percentage of Territory suburb areas experiencing extreme rental pain decreased in July from 36 per cent to 31 per cent.
The Rental Pain Index (RPI) is scored out of 100 by analysing rental price changes, advertised rental numbers, vacancy rates, vacancy changes and rental affordability, with scores 71 and above in the extreme rental pain category.
The report found NT had an RPI of 67, which was the second lowest or any state or territory in the country, behind ACT.
The Territory was also one of just three states or territories not in extreme rental pain, the third being Tasmania.
By suburb area, Gray had the highest RPI, at 92, followed by Coconut Grove (91), Karama and Leanyer (89), Rosebery/Bellamack (88) and Nightcliff (87).
Rounding out the top 10 were Parap (82), Palmerston – South (81), Darwin City (80) and East Side (76).
Suburbtrends founder, Kent Lardner. Picture: Supplied
Kent Lardner, founder of Suburbtrends, said The Rental Pain Index data for August continued to highlight significant rental affordability and market tension across Australia.
“The national average RPI now stands at 72, showing some relief from last month but still underscoring a pronounced strain on renters,” he said.
“The national rental affordability is near the 30 per cent threshold, meaning 30 per cent of income on average is required for rent, subtly indicating a sustained struggle for many Australians in managing rent costs.
“The percentage of suburb areas in severe rental stress in August 2024 has increased to 68 per cent from 63 per cent last month, indicating a worsening in the nationwide rental market crisis.”
This property at 86 Driver Ave, Driver, is for rent for $590 per week. Picture: realestate.com.au
Mr Lardner said the massive growth in house prices in recent years had created a significant gap for most first home buyers, making homeownership increasingly unattainable without familial financial support.
“Those stuck without such support are likely to remain trapped in the private rental market,” he said.
Mr Lardner said the August data revealed alarming trends in Western Australia and Queensland, with rental pain indices at 82 and 83 respectively, and significant increases in South Australia and Victoria.
“The risk of displacement and homelessness is on the rise, as evidenced by the increasing demand on specialist homelessness services,” he said.
“Immediate measures are needed to provide emergency accommodations and support for those at the brink of losing their homes or already homeless.
Mr Lardner said the real driver of Australia’s rental problem was the huge disconnect between population growth and housing supply.
“Population growth and housing supply cannot be left as independent policies – they must be closely linked to ensure sustainable development,” he said.
“Without aligning these policies, the rental crisis will only worsen.”
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