NATIONAL RENT BOMB COSTS TENANTS OVER $1.7 BILLION A WEEK OR OVER $88 BILLION ANNUALLY

The massive jump in weekly rents throughout Australia due to the national rental crisis has seen tenants collectively throughout the country now having to pay $1.7 billion every week in rent over $88 billion annually.

Kevin Young, President of Property Club, Australia’s largest independent property investment group said that these shocking statistics were based on the latest CoreLogic median dwelling rental prices combined with rental housing statistics from the 2021 Census.

“The latest census showed that there were over 2.84 million private rental properties in Australia while the most recent CoreLogic data reveals that the median rental weekly dwelling cost was $601.

“When the figures are combined together, they reveal that Australians are collectively paying over $1.7 billion weekly in rent and if weekly rents remained the same for the next year, then collectively, they would be paying $88 billion in rent.

“However, for every $10 rise in weekly rents Australians would have to collectively pay an additional $28 million per week or $1.4 billion per year.

“And a breakdown of total rental payment for the capital cities (excluding regional areas of Australia further underlines the huge number of rents that Australians are now paying on a weekly basis.” he said.

Capital City                 Weekly Rental Payments        Annual Rental Repayments

Sydney                             $489 million                               $25.4 billion

Melbourne                       $303 million                               $15.7 billion

Brisbane                           $200 million                               $10.4 billion

Perth                                 $130 million                              $6.7 billion

Adelaide                           $89 million                                $4.2 billion

Hobart                              $27 million                                $1.4 billion

The rent bomb has caused tenants to pay $1.7 billion every week.

Mr Young added that the rental crisis in Australia would only be solved unless governments stopped attacking mum and dad investors and instead gave them more incentives to enter the real estate market.

“I have been investing in the residential real estate market for over 50 years and I would have to say that now is the toughest time for ordinary mum and dad investors to own a rental property.

“Mum and dad property investors currently supply over 90 per cent of rental properties in Australia and they hold the key to solving our entrenched rental crisis.

“Between government red tape and ever-increasing regulations combined with the constant threats of removing incentives such as negative gearing, mum and dad investors now feel like they are a threatened species.

“In contrast governments throughout Australia are now bending over backwards with financial incentives to encourage big multinational overseas companies to construct massive build to rent projects as a quick fix to the housing crisis.

“These large corporations need economies of scale to make their Build to Rent model to work so they can deliver the highest capital returns to their shareholders. Economies of scale in simple English is BIG.

“These products are totally unsuitable as a long-term solution to Australia’s need and they risk turning into ghettos as they are managed overseas.

“It is madness to give big tax incentives to these overseas companies which suck money out of Australia rather than incentivising local mum and dad investors to build more suitable homes thereby ensuring that these people can create some wealth to fund their retirement.” he said.

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