Property data experts have revealed the Sunshine Coast suburbs where renters are doing it toughest.
SuburbTrends identified several towns and suburbs in the region where tenants have been feeling the strain.
Group founder Kent Lardner pointed out several findings to Sunshine Coast News after the Rental Pain Index for August was revealed.
“Renters are facing the most significant challenges in Moffat Beach, Battery Hill and Beerwah,” he said.
“These areas top the list with Rental Pain Index scores of 100, 99 and 97, respectively.”
Mr Lardner said rental woes were being felt further afield.
“When we look across all suburbs in the Sunshine Coast, it is clear that affordability is an issue in every location,” he said.
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About 40 per cent of household income is going towards rent, which is significantly higher than the national average of 31 per cent.
“This indicates a severe rental stress,” he said.
“(It) not only drains the pockets of renters, but it also drains the local economy.”
“At these extreme levels of unaffordability, we expect to see an increase in homelessness and the displacement of lower-income families.”
Mr Lardner outlined why renting on the Sunshine Coast was more challenging than in many other regions around the country.
“The region’s appeal as a lifestyle destination, combined with strong population growth and constrained housing supply, contributes to higher rental prices and more significant affordability issues compared to regions with more balanced markets,” he said.
“The region’s population grew by over 79,000 people between 2011 and 2021, and is forecast to exceed 540,000 by 2046, driven largely by migration.
“However, building approvals have not kept pace with demand, with house approvals falling from a peak of 3110 in 2020-21 to just 1974 in 2023-24.
“These supply shortages, combined with high demand, have resulted in elevated rental prices, making the rental market increasingly unaffordable for many.”
He expected renting to become an even harder proposition in months to come.
“Trends suggest that renting will likely become more difficult on the Sunshine Coast,” he said.
“The combination of continued strong population growth and ongoing supply constraints in the housing market are key factors contributing to this outlook.
“Building approvals have declined, while the population is projected to grow significantly, necessitating over 234,000 dwellings by 2046.
“As the gap between demand and supply widens, the pressure on the rental market is expected to intensify, making renting increasingly challenging for many residents.”
There were some areas of the Sunshine Coast where rental pain was minimal in August, like parts of Buderim.
Mr Lardner said rental pain there may be diminished because of slightly higher vacancy rates that suggest a marginally better balance between supply and demand.
“The modest rental increases reflect a market that is not as overheated as others, providing some relief to renters,” he said.
But levels there still exceeded the 30 per cent threshold, considered a benchmark for rental affordability.
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