Rental Affordability Index
National Shelter, Community Sector Banking, Brotherhood St Laurence and SGS have released the Rental Affordability Index (RAI) on a biannual basis since 2015. A price index for rental housing markets, the RAI is an easy to understand indicator of rental affordability relative to household incomes. It is applied to geographic areas across Australia.
With a RAI of 144, rental affordability in Greater Perth has remained stable. The median rental household in Greater Perth faces rents costing about 21 per cent of their total income. This is considered acceptable. Despite this, rental property remains much less affordable for lower-income households.
In response to the findings, Shelter WA Chief Executive Officer Michelle Mackenzie said: “While rental affordability has improved for median-income households, when we look at low-income tenants renting in Perth they continue to face a general lack of affordability – especially single pensioners, women in private rental and other low-income households. There is a critical need to look at rental subsidy options, such as Commonwealth Rental Assistance, as a response along with increasing more diverse, affordable rental housing options."
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