High costs threaten tenants

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Tenants spend 20% of their income for costs associated with renting, putting a strain on their finances, according to the latest figures from the Australian Bureau of Statistics (ABS).

Housing costs included rent payments, rate payments (water and general), and mortgage or unsecured loan payments, according to ABS. 

The 16% share of income that mortgage holders pay for housing has been trending lower since it peaked at 19% in 2005-06, according to CoreLogic Head of Research Cameron Kusher.

Tenants have lower gross household incomes compared to those with a mortgage, hence they pay a bigger proportion of their income in housing outlay, said Kushner.

On average, lower-income households renting privately paid $339 per week nationally, which was 32% of their gross weekly income, the data showed.

Lower-income households owning their home with a mortgage paid $376 per week on average—this was 29% of their gross weekly income, according to the figures.

In New South Wales, 35% of households are renting, and some 35% own their homes with a mortgage, according to ABS.

Thirty percent of homeowners in NSW do not have a mortgage, down from 32% in 2015-16, the data showed.

NSW owners without a mortgage paid $48 per week on average on costs, while owners with a mortgage paid $508 per week, or 15% of their gross weekly income, according to the data.

NSW tenants paid $422 a week, or 21% of their gross weekly income, on rent-related costs, the figures showed.

Top Suburbs : trott park , thebarton , windale , lalor park , the basin


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