Rented properties trending higher: CoreLogic's Cameron Kusher
Based on the Census 2017 data, CoreLogic has reviewed where renting property is most common, and, of the 30.9% of residential properties currently rented, who owns the lion's share.
The analysis shows the proportion of properties rented has been trending higher, increasing from 29.6% at the time of the 2011 Census and 27.2% at the time of the 2006 Census to reach 30.9% of all dwellings in 2016.
While the proportion of dwellings being rented is climbing, the proportion of properties owned outright has also been trending lower and the rate of home ownership is diminishing.
An interesting observation from the latest Census analysis is that those properties classified as ‘rentals’ are not all owned by private investors; almost 12% of rented dwellings are owned by state or territory housing authorities, and 2% are owned by community/church groups.
The vast majority of rentals are investor owned with 60% of these managed through a real estate agent, while 20% of rented dwellings are rented by individuals not living in the same household.
The CoreLgoic analysis has identified the top 50 areas most popular for renters.
Only nine of the 50 regions listed had a lower proportion of properties rented in 2016 compared to the proportion at the time of the 2006 Census.
Interestingly, three of these regions are the top three most rental-centric regions (Torres Straight Islands, East Arnhem and Nhulunbuy).
Note that the rental accommodation in these three regions is predominately provided by government.
Overall, the most rental-centric regions are generally located within mining and resource-related regions, and inner city areas where significant increases in housing density has taken place over recent years.
Over the past 10 years some of these regions have seen a significant increase in the proportion of properties being rented.
Other areas to see significant increases in rental popularity are: Pimpama (located midway between Brisbane & the Gold Coast) where the proportion of properties rented has increased from 29.9% in 2006 to 62.7% in 2016 and South Hedland in Western Australia’s Pilbara region, with significant increases for renting from 36.0% in 2006 to 65.6% in 2016.
By the time of the next Census is 2021, we anticipate that the proportion of properties being rented will increase further given a growing population and ongoing housing affordability pressures, particularly within the largest housing markets (Sydney and Melbourne).
Note: The table above shows the proportion of properties rented over the 2006, 2011 and 2016 Census.
Note that only regions with at least 1,000 total properties at the time of the 2016 Census have been included on the list.
The list provided in this report shows the SA2 regions of the country that had the highest proportion of properties rented at the time of the 2016 Census.
As an aside, and SA2 region, on average, is home to 10,000 residents and, according to the Australian Bureau of Statistics, the purpose of the SA2 region is to represent a community that interacts together socially and economically.
Cameron Kusher is research analyst for CoreLogic. You can contact him here.
