Rental affordability index: Adelaide's outer northern suburbs named most affordable but many families struggling
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Adelaide's outer northern suburbs have been named the city's most affordable for renters as South Australia's low-income families battle high rents, a national index has revealed. The Rental Affordability Index described Sydney as the most unaffordable city for renters but noted low-income earners were "in an absolutely dire situation" across the country.
Adelaide's most affordable postcodes:
5113 — Davoren Park
5117 — Angle Vale
5118 — Gawler
5112 — Elizabeth
5233 — Forreston, Gumeracha
South Australia, according to the report by not-for-profit groups and economic analysts, is ranked the second least affordable state to rent.
Low-income families in New South Wales spend about 65 per cent of their pay on rent, while families in South Australia spend 59 per cent of their income on accommodation. The report also found rental affordability for single householders was on par with Sydney. Households are generally considered to be experiencing housing stress if more than 30 per cent of the household income is required to pay rent. The report showed the lowest-income 40 per cent of Australian households were "locked out of rental affordability". Shelter SA's Dr Alice Clark said the report revealed there was a huge level of housing stress across the state. "Adelaide is not one of the most affordable city. We hear so much about Sydney and Melbourne but when we look at this, low-income households, we see Adelaide is not doing that well either," she said. She said there was often talk about mortgage stress but the report highlighted families were experiencing "severely unaffordable rent". "If you are on Newstart for example, getting about $500 a fortnight, even if you were able to find a unit at about $130 a week that would be $260 a fortnight and getting up to the 60 per cent [income] mark," she said.
Adelaide's least affordable postcodes:
5232 — Cudlee Creek
5154 — Aldgate
5243 — Oakbank
5152 — Cleland
5144 — Carey Gully
She said there was a critical need for housing policies to be reviewed at a federal level. That sentiment was echoed by National Shelter's Adrian Pisarski who said reforms were needed to create affordable housing. "We really need to link this up with the infrastructure reforms that are being considered, tax reforms that are being considered, there needs to be a fit for government purpose incentive, because the solution will be in attracting large scale, private finance, into an affordable housing system," he said.