High rents eating into bigger proportions of Douglas household incomes

RENTAL PAIN

David Gardiner

Journalist

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More household income in Douglas is being spent on rent, leaving less for households to spend on groceries and other bills, which also continue to rise. Picture: Supplied

Rental affordability in Port Douglas has worsened in the past year – with new data showing rent now makes up 42 per cent of the area’s household income on average.

The high proportion of rental prices in the household spend (Port Douglas Statistical Area-SA2) shows how much the cost of living has impacted Douglas households and is further evidence of the extent to which the shortage of housing has put the crunch on rental affordability.

More money is being spent on rent, leaving less for households to spend on groceries and other bills, which also continue to rise.

The rental affordability figures are in the latest ‘Rental Pain Index’ published by research firm Suburbtrends.

The average rental increase over the past 12 months in the Port Douglas SA2 was about nine per cent.

There was a slight improvement in the rental vacancy rate – now at around 1.5%, which means a few more rentals were available but still low enough to keep pressure on upward rental prices and household disposable income.

In the Daintree SA2 – which covers all areas from Mossman in the south through to Wujal Wujal in the north – Suburbtrends said their index has reached 100% “rental pain”. Despite rental increases of only five per cent in the past year, the vacancy rate in Daintree SA2 was lower the Port Douglas at just 1.05%.

The report said: “This high expenditure on housing reduces the funds available for non-essential purchases, leading to a decrease in discretionary spending. 

“This trend is likely to persist, impacting not only individual households but also the broader economy through reduced consumer spending.”

 

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