Rent crisis: Geelong suburbs feeling the most rental pain revealed

Many tenants in Geelong’s eastern suburbs who are feeling the most financial pain in Victoria from rising rents have nowhere to move except to the street, the author of a new report says.

SuburbTrends’ Rental Pain Index found the Newcomb-Moolap area had scored an “unhealthy” 100 in the latest report highlighting the state’s worst rental affordability hot spots.

The report found the average weekly rent in the area – which includes the suburbs of Whittington and St Albans Park – had increased by 5 per cent, leaving tenants paying 35 per cent of their average weekly income on keeping a roof over their heads. A score of 100 shows “extreme rental pain”.

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Paying 30 per cent or more of income on rent or a mortgage is typically considered the threshold for financial stress.

Making things worse for renters was a .91 per cent vacancy rate, which shows the suburbs are among the most competitive in the Geelong region.

Property managers have previously told the Advertiser that these suburbs were among the most in-demand from renters.

Low rental vacancy rates have been exacerbated in Geelong by a continuing exodus of properties from the private rental market as owners weigh up the rising holding costs.

On top of higher interest rates and maintenance costs, the state government hit landlords with higher land tax bills this year.

Vacancy rates were below 2 per cent in 11 suburbs across the region.

Newcomb-Moolap as the city’s second-lowest weekly household income, according to Australian Bureau of Statistics data.

But the analysis shows most of the areas where renters are paying 30 per cent or more of their income on rent were typical low-income suburbs, such as Norlane, Corio, North Geelong and Portarlington.

SuburbTrends founder Kent Lardner said the rental crisis was worse for lower income earners.

“If they’re not in social housing, they’re in strife,” he said.

“It’s pretty common that a lot of the cheaper suburbs for rent are being populated by people exiting the more expensive suburbs.

“The rental market is rather fluid and you can move a few suburbs away. The people who don’t have that ability to up and leave are the ones who can’t afford to find anything in the next suburb.”

Affordability and availability of rental homes remains tough for people looking for homes across many parts of Geelong and adjoining areas, Farah Farouque, director of community engagement at Tenants Victoria said.

“What we’ve seen is that, with record low vacancy rates, even suburbs where people have always headed to find more affordable rental housing are challenging,” Ms Farouque said.

“It’s tough for singles, families, and retirees on low and, increasingly, middle incomes who have to compete in the private rental market.

“Part of the solution must be to continue to build more social housing, that is homes owned by not-for-profits or government and can be leased out at more affordable rates.”

Ms Farouque said the state government also provided more support to renters by supporting centres offering free legal advice through the budget.

“Barwon Community Legal Service is one of a number of centres that has received funding in the state budget to support renters.”