For many young renters, housing costs eat up the lion’s share of their monthly salary. However, many either think the price is fair – or simply don’t care.
The average Aussie renter is predominately female, aged 25-29 and lives in either Sydney or Melbourne. Picture: Getty
A recent survey by realestate.com.au and Pedestrian.TV found that close to 40% of Australia’s ‘Generation Rent’ (18 to 39-year-olds) live in rental stress – when housing costs make up more than 30% of the gross household income.
Sydney renters experienced the highest rates of rental stress (64%) followed by Melbourne (37%).
Interestingly, up to 72% of the survey’s respondents felt the price they pay for their rent is reasonable – while others choose to pay more to live in their preferred location and feel it all balances out in the end.
The results found the average Aussie renter is more likely to be female, aged between 25-29, living in Melbourne or Sydney, and earning an income of around $50,000 per annum.
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Julian, 28, from Sydney said: “Say we moved to Parramatta or somewhere like that. If we’re lucky we might get a $100 drop in rent, and it will still be the same cost of living. So, you may as well pay $100 and live closer, because you can walk to places and get drunk and save money on Ubers.”
For many young Aussie renters, living in a top location beats paying lower rent. Picture: Getty
More than half (51.7%) of the survey’s respondents believed location was the most important consideration when choosing their rental, while a third (33.1%) felt price was the most vital issue.
Don’t stop until you hit six figures
There’s no exact point at which rental stress starts to dip, although obviously the more you earn the less rental stress you’ll experience.
So, how much do you need to earn before considering yourself stress-free? You guessed it… a lot. The magic number is 100k in annual income, which is almost double the average wage of $55,600.
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Overall, 20% of respondents would be happy to rent forever. Almost 50% who felt this way were based in Western Australia or Victoria.
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Realestate.com.au partnered with Pedestrian.TV for the 2018 Rent Survey, to gain insights from 18 to 39-year-old renters across the country.