Hobart has pipped Sydney to claim the unenviable title of Australia’s most unaffordable capital for tenants with the gap widening between incomes and the amount needed for rent, a new report has found.
The Rental Affordability Index (RAI) is an indicator of the price of rents nationwide relative to household incomes based on new rental agreements.
The biannual study is published by National Shelter Community Sector Banking and SGS Economics and Planning.
From being seen a budget alternative to the mainland cities, Hobart’s unprecedented real estate sales boom combined with low incomes, a tourism burst and a surge in former rental properties being offered as short-term accommodation, has catapulted it to the top of the RAI.
The latest report showed tenants in Hobart were spending 29 per cent of their wages on rent with Sydney renters close behind with 27 per cent, followed by Adelaide, Brisbane, Melbourne, Canberra and Perth.