Cook Government Faces New Rental Affordability Crisis
A new report has laid bare the Cook Labor Government’s failure to address WA’s rental crisis, revealing that mortgage repayments are now cheaper than renting in many parts of Perth.
The Rent vs Buy Report, published today by real estate website Domain, compares the average cost of rent to mortgage repayments for houses and units around the country.
It found that in almost 83 percent of suburbs in Perth, it is cheaper to service a mortgage on a unit than it is to simply rent one. By contrast, the equivalent national figure sits at 22 percent.
When it comes to houses, it is more affordable to take out a mortgage than it is to pay for a rental in almost five percent of Perth suburbs – a stark contrast to Melbourne, Sydney and Adelaide, where renting a house is cheaper than buying in every suburb.
Of the top 10 localities in WA where a mortgage is more affordable than rent, more than half are in regional areas.
As stated by Tim Clifford MLC, Greens WA spokesperson for housing and homelessness:
“Whether you’re a first home buyer or a renter, the takeaway from this report is clear: housing in WA is a zero-sum game.
“It is absolutely shocking that, in some parts of Perth, taking out a mortgage is now cheaper than renting.
“While the Domain report heralds the data as good news for first home buyers, the reality is that house prices are still at record highs. In fact, the national average passed $1 million for the first time just last month.
“This is not a case of houses getting cheaper – it’s a case of rentals becoming even more expensive and inaccessible.
“Renters in WA are doing it tougher than anywhere else in the country.
“The blame for that lies squarely with the Cook Labor Government, who should be looking at introducing measures like a flexible rent cap as per the ACT; banning no-cause evictions; and moving quickly to address the adverse impacts of short-stays on the rental market.
“These urgent interventions would free up more homes, easing the squeeze on renters and the housing market itself.
“I look forward to working constructively with the government to make that happen.”
https://greens.org.au/wa/news/media-release/buck-stops-cook-government-shocking-new-rental-affordability-data