As Melbourne’s rental crisis continues to pain, a new analysis reveals Woodend and Kyneton rank the highest for rental unaffordability in the Macedon Ranges.
The National Shelter and SGS Economics and Planning analysis was released on November 14, to show rental affordability across greater Melbourne has plummeted 10 per cent in 12 months.
The rental affordability index (RAI) gives areas a score based on the percentage of household income used for rent.
If housing costs exceed 30 per cent of a low-income household’s gross income, the household is experiencing housing stress.
Woodend received a 90 RAI score, while Kyneton received a 92, which places them both in the unaffordable rent range (80-100) and is worse than regional Victoria’s score of 112, which fits in the moderately unaffordable range.
Sunbury and Cobaw Community Health housing team leader Kate Weston said these scores are a real concern for families.
“There are a range of factors that have contributed to this, for example the migration to regional Victoria from the city during COVID,” she said.
“Plus the impact that multiple interest rate rises have had on mortgage repayments, which are passed on to the tenants of leased properties.
“This forces people out of the area away from friends and family and their networks of support as well as work and school.”
Sunbury received a 148 score, Diggers Rest received 134, Gisborne received 121 and Riddells Creek received 132, placing them all in the acceptable range.
Ms Weston said they have seen a huge increase in community members needing housing assistance and a lot of these people are experiencing rental stress.
“We have seen an increase in people sleeping rough, in their cars, motorhomes, tents and couch surfing,” she said.
“There is a flow-on effect in more people using local food banks and accessing support from neighbourhood houses, community lunches and emergency financial relief.
“Our preference is [for there to be an] increase in community and public housing as it is affordable for people on low incomes as there is a cap on the percentage of income payable for rent.”
SGS economics and planning principal Ellen Witte mentioned other areas in Melbourne north-west, including the corridor from Footscray to Meadow Heights, which was considered affordable to the average rental household last year but were no longer.
“As of the June 2023 quarter, those options that cost less than 15 per cent of a household’s gross income had all but vanished,” Ms Witte said.
“Unaffordability has spread from the cities to well into the regions. Households will have to live further away from where the jobs are to access affordable rents.
“We need to attack this problem from multiple angles. This means expanding social and affordable housing, rethinking how we use tax subsidies and strengthening renters’ rights.”
