Unveiling Australia’s Rental Landscape: Top 10 Most Affordable Regions in 2024

No one can deny that life is becoming more and more expensive. Our grocery bills have skyrocketed, more and more people are cutting back on recreational activities, and housing needs to be attainable. We are all feeling it, and we are not alone. The Australian rental market is volatile right now, with renters trying to cope with the rising costs. Over the past few years, rents have been climbing steadily, creating a crisis that has affected the lives of many Australians. This rental crisis has started to influence socio-economic issues nationwide.

This article will give you a clear picture of the current Australian rental market, pinpoint the most and least affordable places to rent in the country, and unpack the implications these findings hold for renters and policymakers.

Affordable Areas to Rent Across Australia in 2024

Average Rent in Australia in 2024

Over the past three years, the average rent in Australia has skyrocketed by a staggering 10%. That equates to an increase from $470 per week in 2020 to $520 in 2023. Rising living costs seem to have become an unwelcome trend in many developed nations, thanks to inflation, demand for rental properties, and increasing property prices.

The epicentres of these rental storms are mainly in Sydney and Melbourne. These two vibrant cities, with their bustling energy and countless opportunities, also have the highest average rents in the country. It’s no surprise, given the allure of urban living spaces, which offer proximity to employment hubs, renowned educational institutions, and many amenities.

Whether you want a beachside apartment in Sydney or a chic loft in Melbourne, you must understand the rental market dynamics. By uncovering the most and least affordable places to rent, we can highlight the challenges renters face nationwide. This empowers renters and policymakers to work towards a fair and sustainable rental landscape.

Australia’s Rental Crisis

The rental crisis in Australia is not a standalone issue. It’s part of a global trend and profoundly affects many Australians’ living standards. The root causes are:

Low housing supply: Demand for housing is outstripping supply, which drives up prices. This is partly due to population growth and urbanisation trends.

High demand for rental properties: The need for rentals is exceptionally high in urban areas, where employment opportunities tend to be concentrated.

Investor demand for property: Real estate remains a popular investment choice, often seen as a secure and lucrative option. Reducing the supply of rental properties worsens the issue.

Government policies that favour investors over renters: Some policies, such as tax benefits for property investors, can encourage property investment and speculative buying, contributing to price increases

Government Response to the Rental Crisis

The government has been trying to ease the crisis by increasing the supply of social housing, providing financial assistance to renters, and introducing rent controls. However, these measures have only been partially effective.

Social housing initiatives often take years to implement and may need to meet the demand quickly enough. Financial assistance can temporarily relieve renters but does not address the underlying issues.

Rent control can help make housing affordable for some renters but could also discourage property investment, decreasing rental property availability.

Rental Properties in Australia

Here is a list of the ten most and ten least affordable rental areas in Australia. The final score for each location is calculated from factors like the number of renters, average income, changes in rent since March 2020, and rent cost. A lower score means less affordability due to high rent or significant rent increases. In comparison, a higher score signals more affordability.

The 10 Least Affordable Places to Rent in Australia in 2024

Richmond-Tweed

Scoring 40, Richmond-Tweed is Australia’s least affordable place to rent in 2023. Its average weekly rent is $711. Even though it is located in a regional part of New South Wales, its appealing facilities and scenic landscapes make it a popular choice among tenants.

Gold Coast

The Gold Coast, with a score of 40.5, ranks as the second least affordable place. With a median weekly rent of $791, this location is known not only for its attractive features like surf beaches, theme parks, and nightlife but also for its high cost of living.

Sunshine Coast

The Sunshine Coast is third on the list, with a final score of 43.7 and a median weekly rent of $711. It is a well-liked tourist destination admired for its beach resorts, rural hinterland, and relaxed lifestyle, but it is also the third least affordable place to rent.

Coffs Harbour

With a score of 47, Coffs Harbour secures the fourth spot. This regional area in New South Wales has a median weekly rent of $561. Despite the high rent, tenants are drawn to its natural beauty and available amenities.

Mandurah

With a score of 48.4, Mandurah is the fifth least affordable place on the list, demanding a median weekly rent of $504. Although it is part of regional Western Australia, Mandurah is favoured for its canals, wildlife, and attractive waterfront lifestyle.

Mid North Coast

Mid North Coast follows with a final score of 50.4 and an average weekly rent of $508. While it is a regional area in New South Wales, the appeal of its natural attractions and amenities drive up rental prices.

Sydney – Eastern Suburbs

With a score of 50.9, Sydney’s Eastern Suburbs ranked seventh as the least affordable place to rent in Australia in 2023. With an average weekly rent of $1,289, these suburbs are sought after due to their proximity to the city centre, beaches, and the amenities they provide.

Bunbury

Bunbury, with a score of 51, places eighth on the list. It is a regional part of Western Australia known for its wildlife, waterfront lifestyle, and excellent facilities. The median weekly rent is $525.

Western Australia – Outback (North)

With a score of 51.2, Western Australia’s northern outback is the ninth least affordable place to rent in 2023. Despite its remote location, this area, with a median weekly rent of $765, offers a variety of amenities and unique attractions like national parks and Indigenous culture.

Moreton Bay – North

Earning a score of 52.1, Moreton Bay-North is the tenth least affordable place to rent in Australia in 2023. With an average weekly rent of $519, this part of Queensland is famous for its beautiful bay, islands, and comfortable suburban lifestyle.

Insights and Implications

Based on the data, it’s obvious that rent in Australia has been steadily increasing. This rise in rent prices has become a central issue in Australians’ socio-economic challenges. Despite the government’s attempts to address the problem, their efforts have not yielded significant results. Interestingly, Melbourne is a more affordable option for renters, while regional areas pose more substantial affordability challenges.

These findings hold important implications for both renters and policymakers. Renters must remain informed about the ongoing escalation of rent prices and take proactive steps to safeguard themselves from potential financial hardships.

Meanwhile, policymakers must continue finding more effective and sustainable solutions to tackle the rental crisis and ensure that affordable housing remains accessible to all. By working together, we can strive for a future where the burden of high rents is alleviated and Australians can secure affordable and stable housing.

The Australian rental market presents renters and policymakers with formidable challenges to overcome. With rents consistently rising and the rental crisis looming large, all stakeholders must confront this issue directly.

Despite its complexities, understanding the present market conditions and drivers behind escalating rents is crucial. This understanding serves as the foundation for effective solutions, paving the way toward greater affordability and accessibility of housing for everyone.

Methodology

This study analysed Australia’s 88 SA4 areas (Statistical Area Level 4) to assess their rental affordability. Each area was then analysed on the following factors, giving each area a normalised score out of 100. Once the scores were normalised, we calculated each area’s overall performance. To achieve this, we combined the individual scores, considering their respective weights assigned based on their importance.

By applying appropriate weights to the normalised scores, we created a composite score for each state. The final composite score, ranging from 40 to 85 (to give a more realistic view for the readers), reflects a statistically meaningful assessment of the area’s overall affordability.

The final dataset does not store the individual scores for each feature but only the actual feature values. The data was taken from the Australian Bureau of Statistics.

The criteria are as follows:

1. Renting Population: The renting population of each SA4 area was collected to understand the housing demand for each area. Data was taken from the Australian Bureau of Statistics from the census data (latest available data).
2. Median Weekly Income (AUD): The median weekly income for each SA4 area was obtained to gauge the income level of residents and their capacity to afford rental properties. From The Australian Bureau of Statistics, we took the median weekly income data for the latest available year.
3. Rental Value Change since March 2020 (%): The percentage change in rental values since March 2020 was included to capture the impact of recent market dynamics on rental affordability. Data was taken from the Australian Bureau of Statistics from the census data (latest available).
4. Median Weekly Rental Value (AUD): The median weekly rental value for each SA4 area was considered a direct indicator of rental costs.
5. Rent-to-Income Ratio: The rent-to-income ratio was calculated by dividing the median weekly rental value by the median weekly income. This ratio provides insights into the affordability of rental properties relative to residents’ income levels.

Methodology: Further Details

The actual scores are padded to 40-85 to get more realistic-looking scores.

Weights for each feature are as below and are taken to be a bit more subjective:

Feature	Weight
Renting Population	0.1
Median Weekly Income (AUD)	0.25
Rental Value Change since March 2020 (%)	-0.2
Median Weekly Rental Value (AUD)	-0.2
Rent to Income Ratio	-0.25