Renting is becoming a severe burden to Aussies — expert

By Gerv Tacadena

Renters are spending more on housing costs than homeowners.

Renters are spending more on housing costs than homeowners, recent figures from the Australian Bureau of Statistics show.

It is becoming a struggle for many renters to keep a roof above their heads — on average, they spend 20% of their income to settle housing costs. In comparison, homeowners only need to set aside 16% of their income to meet mortgage and other housing expenses.

Renting households typically have lower incomes than those with mortgages, market watcher Jonathan Chancellor said in a think piece in The Daily Telegraph.  Given their limited income, these households allot a more significant portion of income for housing costs than homeowners.

"On average, lower-income households renting privately paid $339 per week nationally which was 32% of their gross weekly income," he said.

For instance, renters in New South Wales need an average of $422 weekly to cover housing costs — an amount that equates to 21% of their income.

Homeowners with mortgages spend higher at $508 – but while their housing costs are higher, these weekly expenses only account for 15% of their income.

"There's always been those reports that grab headlines suggesting the Sydney suburbs where it was cheaper to pay down a mortgage on a house than to rent one. But these days they virtually don't exist. Indeed, even our regional areas are failing to offer relief for renters," Chancellor said.

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