Australians remain in the grip of rental stress, but there are stark differences emerging across the country.
The latest Rental Pain Index (RPI) report by property research and analysis firm Suburbtrends found signs of easing pain in some states, and "promising" improvements in Tasmania.
But Queensland and South Australia remain stuck above the 80 per cent RPI mark, exceeding critical levels.
Suburbtrends analyst and founder Kent Lardner says the monthly report reveals a complex picture of Australia's rental market, and there are significant challenges across the board.
"While we are seeing early signs of easing rental pressures in some areas, the broader picture remains challenging," he said.
A nation of renters in 'extreme pain'
About one-third of Australians are renters.
And right now, 72.9 per cent of suburb areas nationally are experiencing extreme rental pain, according to the report.
The report provides a monthly analysis of suburb areas across the country to give them a RPI score.
The RPI takes five key factors into account — rent change, advertised rentals, vacancy rates, vacancy change and rent affordability — to create a ranking out of 100.
Anything higher than 75 is considered an "extreme" or "critical" level of rental stress.
National annual rent growth has risen from 7.96 per cent to 10.29 per cent, according to the report.
And the proportion of income spent on rent also rose, climbing from 29.96 to 30.81 per cent.
Breaking down the situation across states, the RPI for NSW declined slightly from 79.91 to 76.16, and Victoria also had a modest drop.
But Tasmania was the stand-out with a RPI drop of 64.86 to 59.95.
RPI reductions in Tasmania and other areas could be attributed to a trend in vacancy rates rising, but they were not enough to balance rent hikes, Mr Lardner said.
Vacancies may be attributed to a drop in migration-driven population growth, or a lack of affordability be forcing locals out.
"The slight improvements in states like Tasmania are promising, but we cannot overlook the fact that high rents are still a burden for many households," Mr Lardner said.
Overall, July 2024 highlights increasing rental pressures, with most states witnessing heightened rental increases and deteriorating affordability, the report states.
Percentage of states in extreme rental pain
The worst suburbs for renters
There are a handful of suburbs across the country with a maximum 100 per cent RPI score.
Queensland dominates the list with residents in suburbs such as Daintree, Emu Park and Mount Morgan paying upwards of 39 per cent of their income on rent.
Elin Charles-Edwards, associate professor in human geography at the University of Queensland, said the reason Queensland and WA were suffering the most has had a lot to do with population growth.
They had the largest population growth in the past year, according to the latest figures from the Australian Bureau of Statistics (ABS).
And both states saw a boost in interstate migration around the COVID pandemic years.
"We've seen this real resurgence in some people coming to Queensland, so the cumulative effect of that demand is really being seen in the housing system," Professor Charles-Edwards told the ABC.
Where rent consumes household income
Mr Lardner said the "really vital statistic" to consider when looking at the data was how much household income is being allocated to rent.
While some areas have seen rents levelling out or vacancies increasing, rents in general are still consistently high relative to income.
"The impact of high rents on household budgets is profound," he said
"Many families are forced to allocate a substantial portion of their income to housing, leaving little room for other essential expenses."
The ABS defines rental stressas having to spend more than one-third – or 30 per cent – of your gross income on rent.
Using Census 2021 data, the report identified suburb areas where low-income earners may be struggling the most.
Queensland suburbs took out the majority of spots when looking at the remaining weekly income balance after rent.
But Tweed Heads South in the NSW Northern Rivers region topped the list.
There the rental median is $700 with an estimated income of $1,057, leaving a balance of $357.
Mr Lander said the median income could be skewed in places such as Tweed Heads due to a higher proportion of residents on social security rather than typical wages.
The average household earnings may also have changed since the 2021 Census, but there are concerns for people in lower income brackets who are "stuck" in areas with skyrocketing rents, Mr Lardner said.
"Imagine being a pensioner trapped in the private rental space almost anywhere in Australia ... That's where the real horror story would be."
'Human tragedy unfolding'
Professor Charles-Edwards said the report was "really concerning", describing Australia's ongoing rental crisis as a "human tragedy unfolding".
"Housing is obviously a human right, and the instability and stress it causes when people can't find suitable housing is pretty immense and a big cost for society," she said.
More housing is the main solution, but the country is in a desperate state of catch-up.
The demographic shifts during the pandemic meant "we took our eye off the ball a little bit," Professor Charles-Edwards said.
"We probably didn't understand the demography well enough ... If we had a crystal ball, perhaps we would have emphasised building houses during the pandemic period.
"Now we've obviously got a massive shortage in supply, and it's cumulative, and we've hit breaking point."
The Albanese government has promised to deliver 1.2 million "new, well-located homes" by the end of the decade.
Mr Lander said affordability needed to be considered in the plan.
"We're promising to build more stock, great. But are we delivering affordable stock? That's my concern," he said.
While such a large percentage of the country is facing housing stress, he's calling for the government to intervene to help reduce rental costs to sustainable levels.
And to focus on immediate solutions for emergency accommodation.
"We need social housing at scale, but how do you rapidly turn around 50 or 60 years of neglect in one year?" he said.
"We need emergency accommodation, or alternative types of accommodation, for those in lower socio-economic brackets."
