Rent Crisis in Australia and Its Effects on Homebuyers

If you're in the market to buy a home, it's time to consider renting. Australia has never had a higher percentage of renters than homeowners and that trend is only getting worse. The boom in renting has been growing steadily for over 30 years, but there's more to this story than just supply and demand at play here: there are also real reasons why so many Australians are choosing not to own their homes any longer.

Real estate is the fastest appreciating asset on the planet.
The average house price in Australia has increased by almost $100,000 in the last decade. In fact, if you're looking to buy a new home and your budget is $200,000 - that's just fine! You can afford it.

But what if you want something bigger? Or smaller? Or with more rooms than those two options? Well then there's no need for panic because we've got everything covered here: the average house price in Australia has increased by almost $300,000 since 2010 alone!

There are more renters in Australia than ever before.
It's no secret that Australia is a nation of renters. We've never been more likely to rent than we are now, and with the current state of our housing market, it seems like renting is becoming even more popular among Australians.

According to a 2016 report from realestate.com.au, there are currently more than one million households—about 1 in 5 households—that are renting rather than owning their own homes. That number may sound high at first glance; however, when you consider that only about 50 years ago most Australian families were buying houses outright (or at least purchasing them with some form of mortgage), it becomes clear just how much things have changed since then!

Australia has never had a higher percentage of renters than homeowners.
The Australian population is growing and becoming more diverse, which means that the demand for rental properties has increased. This is a good thing because it means that more people are able to afford housing but it also means there’s less supply available.

In fact, it has been reported that Australia has never had a higher percentage of renters than homeowners. And not just any kind of homeowner—renters make up 95% of all households in Australia! This means that renting has become the new normal for many Australians who want their own place but cannot afford to buy one yet (or maybe ever).

The boom in renting has been growing steadily for over 30 years.
You may be wondering why renting is becoming so popular. The answer is simple: it's the most affordable option for many people in Australia.

Renting has been increasing since the 1980s, but it accelerated in recent years and now accounts for almost half of all households. This means that renting has overtaken home ownership as an alternative to owning your own property.

Apartments saw the biggest increase in tenants over the past decade.
Apartment properties saw the biggest increase in tenants over the past decade, with a 15% increase in the number of households renting them between 2001-2017. This is likely due to their affordability and ease of maintenance. They’re also popular because they don’t require much space, which means you can buy one for less than $300K if you don't mind living with roommates or moving into smaller quarters after a few years (or decades).

Apartment buyers also tend to be younger than homebuyers and have lower incomes—but not necessarily lower levels of wealth! Apartments have become an attractive option for first-time buyers who want an investment property but don't want to pay full price for something bigger or with more amenities attached.

The average Australian is getting poorer.
The median household income in Australia has declined by 5% since 2006, according to the ABS. This means that half of all households have seen their incomes decline over this period, while the other half have seen an increase.

The decline may not be quite as significant if you look at it as a proportion rather than absolute terms: although $16k-$20k sounds like a lot of money now (it was more than double what I earned when I first started working), it was still less than what we spent on rent for our apartment at the time.

If you're below a certain age, you're likely to be paying rent.
If you're below a certain age, you're likely to be paying rent. This is because renting is the norm for many people under 30 and it's also common for those over 65 who have retired and need to downsize.

The high cost of living in Australia has made it difficult for people on fixed incomes like single parents or retirees to afford housing costs. The rental market has been affected by this too: while rents were rising prior to 2008, they haven't stopped since then—and they're expected not just continue rising but accelerate even faster over coming years as population growth outpaces jobs creation (which means more pressure on already stretched budgets).

Renters have fewer savings than homeowners.
The average Australian renter has less disposable income than the average homeowner, with renters reporting lower incomes than homeowners. This means that when it comes to saving for a house, renters have fewer options.

Renters are also more likely to be in debt and have an unstable financial situation overall compared to homeowners. This can make it difficult for them to save money or afford repairs on their property if they need them (for example: replacing the roof).

The cost of renting is also high compared with owning a home; however, this doesn't necessarily mean that renting will always be cheaper than buying a house outright—it depends on your situation! If you're looking at buying outside of major cities such as Sydney and Melbourne then housing costs may be higher due mainly because land prices are high locally so building codes are stricter there too which adds onto construction costs."

Renting also costs more than owning a home.
According to an analysis by the National Association of Realtors, renting an apartment in the United States costs $1,068 per month on average—more than double what it costs to rent an apartment in Australia ($650). The same report showed that renters spend over twice as much of their income on housing costs as owners do: 35 percent versus 14 percent. This is due largely because landlords charge higher rents and charge utilities like electricity and water separately from rent; they also have other expenses such as maintenance fees and insurance that aren’t included in the monthly price tag when you sign up with them (you can find these numbers out from your local real estate agent). A similar study conducted by Consumer Reports found similar results: “Renting is actually less expensive than buying or renting when all factors are considered."