Finder’s Consumer Sentiment Tracker data for June showed that 47% of Australian tenants struggled to meet their rent payments, compared with 38% of homeowners who reported difficulty servicing their home loan.
Whitten (pictured right) said constrained housing supply was compounding the pressure on renters.
“Low vacancy rates mean renters often feel they have no choice but to accept higher costs or risk being homeless,” he said. “For many Australians, moving is no longer a guaranteed way to save money on rent.”
Around 9% of renters said their rent had already increased over the past six months but were not concerned about a further rise. Only 29% of renters said they were unconcerned about the impact of interest rate movements on their rent.
Whitten said ongoing rate uncertainty was weighing on renters’ financial confidence. “Too many are living in fear of the next email or phone call from their landlord because another increase could blow a hole in an already stretched budget,” he said.