One in two renters are struggling to make ends meet in Australia due to higher rents, as households continue to feel the cost-of-living squeeze across the country.
According to the latest data from realestate.com.au's Residential Audience Pulse survey, more renters are having to make compromises in order to find a place to live.
About 52% of respondents said they were experiencing financial difficulty due to high rental payments, the July 2024 survey found.
It comes as the national weekly median rent rose 9% year-on-year to $620, and marked a 48% rise since the start of the pandemic.
Nearly three-quarters of respondents indicated they are being forced to make sacrifices on preferred price, location, or property features when searching for a rental, a slight increase from last year's results.
Regardless of the state, more than 70% of renters are making compromises.
In South Australia, 56% of renters reported struggling to pay the bills due to high rents. Similarly, in Queensland, 56% of renters were facing financial difficulties.
Surprisingly, renters in New South Wales and Victoria were slightly less financially stressed than those in other states, with 51% and 46% respectively reporting they are suffering financial stress.
Due to unaffordable weekly rents, 41% of renters mentioned they would need to move to a smaller property to manage their bills.
This issue was more pronounced in NSW, where 43% of renters were considering this option.
Renters in WA, VIC, and QLD were also more likely to have to opt for a smaller property.
Another option is to rent with others, either friends and family or strangers, though this was not popular among the survey respondents.
Overall, nearly 58% of respondents stated they would not consider living with others to help afford the rent, with renters in SA being the least inclined, as 74% said they wouldn't live with others.
On a positive note, renters were slightly less pessimistic about their ability to find a rental property in the current market, though optimism still remains low.
Fifteen percent of respondents strongly disagreed with being confident about finding a property, a 29% decrease from last year.
However, there was a 6% increase in those who felt more confident in finding a rental property.
With the growth in median weekly rents much lower compared to the period between 2022 and 2023, and a 10% rise in national vacancy rates in August, the signs are positive that the extreme conditions experienced over the past few years are easing, and conditions for renters look set to improve in the coming months.
