Property 101: Queensland rental affordability
Housing affordability (and rental affordability) in Queensland is not the same issue that it is in the southern states, and so when national media and national organisations talk about “our affordability problems” they are generally referring to Sydney and Melbourne.
However, this week Anglicare released its snapshot research into rental affordability, looking at more than 7400 properties listed on realestate.com.au on one weekend to create a picture of the city’s affordability.
The snapshot found (among other things) that around 11 percent of advertised rentals (796 listings) would be affordable for a family where two adults worked minimum wage jobs and had two young children.
The snapshot also found that there were very few options for adults, either couples or singles, who were on welfare payments to rent their accommodation without being in financial distress (where more than 30 percent of income was allocated to accommodation).
The REIQ’s concern about this snapshot is that it might not present the most accurate picture, which then affects the conclusions drawn. It is important also to be aware that not all rentals are advertised on realestate.com.au. A significant level of rentals is listed on other prominent portals, and there is also a significant number advertised privately. So the realestate.com.au snapshot is not necessarily the most precise source of information about all rentals in the market at any one time.
Having said that, the REIQ does believe that housing should be affordable for all members of our community and we work closely with a range of organisations in an effort to ensure housing affordability does not fall through the cracks and get neglected as a social issue.
The REIQ forms part of the Housing Affordability Expert Panel, formed by the Minister for Housing and Public Works, Mick de Brenni, and we meet regularly with other similar organisations to offer feedback and information that helps the Minister manage housing affordability in Queensland.
We also work with RentConnect, a Queensland Government department that helps those in lower socioeconomic brackets secure affordable housing. We teach real estate agents how to fairly and properly assess those who apply for rental accommodation and how to help them find the services that will help them finance their rentals.
One of the things we regularly teach consumers is that the listing price, with both rentals and property sales, is always negotiable. This is the wish-list price and should always be regarded as a starting point only.
The negotiability of these wish-list prices will grow over the next 18 months as the much-written about supply of apartments comes to market. We expect landlords to become more flexible as rents soften and supply continues to grow. This will definitely improve affordability in Brisbane’s rental market.
For more information from the REIQ, click here.