The latest release of the Rental Affordability Index (RAI) has found Hobart is the second least affordable capital in Australia, with average income households paying 28 percent of income on rent. This is close to the stress threshold of 30 percent, where people experience difficulty paying for primary needs, such as food, heating, medicine and transport.
The RAI is an indicator of the price of rents relative to household incomes based on new rental agreements. It is released biannually by National Shelter, Community Sector Banking and SGS Economics & Planning.
With a RAI of 106 in the June quarter of 2017, affordability in Greater Hobart has fallen to its lowest level since the September quarter of 2012. Average income households in Greater Hobart face rents of around 28 percent of total income. Hobart is currently experiencing a booming housing market and shortage of rental housing.
The least affordable suburbs include Battery Point, Sandy Bay and Otago, where average income households would pay up to 36 percent of income on rent. Parts of Kingston have also declined from moderately unaffordable to unaffordable.
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