Latest Rental Affordability Index reports deepening rental crisis

Tasmania’s peak body for housing and homelessness is concerned but not surprised at the findings of the fifth Rental Affordability Index (RAI) released today.

“Rental affordability in Greater Hobart has fallen to its lowest point since the Index began in 2015. Hobart remains the second least affordable capital city after Sydney, due to our lower incomes in Tasmania, and rising rents,” Shelter Tas Executive Officer, Pattie Chugg said.

“Sadly the results of this latest RAI are not unexpected when we have seen a 14% rise in rent in Hobart and 9% in Launceston in the past year,” Ms Chugg said.

“This Index provides ongoing evidence that housing stress is entrenched in Tasmania, affecting young and old alike. This surely busts the myth that housing in Tasmania is affordable.  Around 40% of renters on low incomes are in rental stress in Tasmania (8,000 households),” Ms Chugg said.

“Our homelessness services report they are finding it increasingly difficult to find affordable rentals for their clients. The Index shows that even those households on average incomes are finding private rents bordering on unaffordability. However, these averages mask the situation for low income earners, with many paying over 60% of their income on rent,” according to John Stubley, Executive Committee member.

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