Australian renters spend 23% more of their budget on rent than mortgagors on loan repayments.
Following from a recent post, this further shows that renting stings more than home-loans, and Australian Governments need to focus more on rental affordability than on those trying to enter the housing markets. Yet the conversation hardly mentions them.
The average Australian renting household spends 22% of their weekly expenditure on rent, while those repaying a home-loan only spend 18% of their weekly bucket. The analysis, based on the latest (but slightly outdated) ABS figures from 2009-10, shows the difference is more pronounced in the higher income brackets.
The difference is even greater among households whose main source of income is Government pensions and allowances. Aged Pensioners who rent spend 4 times more on rent than mortgagors do on repayments. Renters relying on unemployment benefits spend 30% of their weekly expenditure on rent, while mortgagors spend half that amount (16%) on repayments.
So, it’s pretty clear that households struggling with housing costs need help to pay their rent, not to continue to amass wealth while chasing the “Australian dream”.
For all the support, subsidies, and attention paid to first home-owners, Australia is in a great place to ensure no one goes without housing. And renters appear to be at the heart of it all.
6530.0 Household Expenditure Survey, Australia: Detailed Expenditure Items, 2009-10
65300DO001_200910 Household Expenditure Survey, Australia: Summary of Results, 2009-10