Perth’s rental market more unaffordable for median renters than Sydney, with lowest property standards

Perth has overtaken Sydney as the most unaffordable city for renters in Australia — and it also has the worst property standards. The bleak news is contained in two reports and paints a worrying picture about the rental market. Commissioned by National Shelter, the annual rental affordability index shows a steep 13 per cent slide in affordability compared to household income over the past year. It has forced Perth’s affordability ranking below Sydney for the first time in the index’s decade-long history. It said the slide in affordability follows an 80 per cent hike in rental costs in greater Perth along with a much smaller 15.2 per cent increase in wages since mid-2020. “Renters in WA are struggling more than ever before as relentless price hikes vastly outpace income growth,” Shelter WA chief executive Kath Snell said. “Families who have never experienced homelessness before are sleeping in cars and tents because they cannot afford the rent. “The rental market is out of control and needs to be fixed fast.” The $629 median weekly rent in Perth accounts for 31 per cent of the median household income for renters, overtaking Sydney which sits at 30 per cent. Only four years ago, when Perth was the nation’s most affordable city, tenants paid 20 per cent of their income on rent. The report found that any household solely reliant on JobSeeker and rental assistance would require almost five times its income for rent to be affordable. National Shelter said WA has the weakest rental protections in the country because it allows unlimited price hikes every six months and no-grounds evictions. Ms Snell said renters were too scared to negotiate rental relief or repairs for fear of being turfed out. A separate two-year study by the WA Making Renting Fair Alliance involving hundreds of renters shows 56 per cent suffered leaks, dampness, or mould in their rental homes, and close to half had issues with electricity and difficulty locking doors and windows. Just over four in 10 (42 per cent) experienced pest infestations and 56 per cent could not keep the property cool or warm. Most worried repairs requests could result in their lease not being renewed (67 per cent), a price increase (62 per cent), or being ignored (62 per cent). “Renters are getting an unfair deal in WA — not only are many paying through the nose in rent, but the homes they’re living in are unsafe, unhealthy, and inadequate,” Ms Snell said.