WA renters feeling the squeeze
08/02/2009
A new SGIO survey of renters reveals that the tight rental market is having a much bigger impact on the lifestyles and spending choices of WA renters than their eastern states counterparts.
The survey revealed that WA’s growing number of renters are cutting back on food expenditure and other items, including insurance for their own valuables, to afford to stay in WA’s competitive rental market.
Increasing rents are also impacting on the spending and lifestyles of almost half of renters living in the Perth metro area with over 60% of WA renters being forced to cut back on clothes, accessories and holidays.
SGIO State Manager Colin Tierney said that as growing numbers of West Australians opted to rent rather than buy a home there was little doubt that they were increasingly feeling the combined squeeze of increased rents and competition for accommodation.
“Over one in three (35%) WA renters say increased rental prices are impacting their ability to spend, and this comes at a time when we’re being urged to continue to spend where we can to help support the economy” Mr Tierney said.
One in four renters (25%) surveyed also believed they would never afford to own a home in an area they would want to live compared to one in ten renters nationally, while nearly seven out of ten (67%) said there was too much competition for rentals in Perth compared to 52% in other states.
Nearly nine out of ten WA renters surveyed (88%) said they had experienced regular rent increases while living in their rented property, compared to just over half of renters nationally.
Mr Tierney said that increased rents may also be influencing renters’ decisions over whether or not to pay to insure their contents, with 50% of WA renters preferring to spend what money they had on other things.
“Renters face additional pressures in protecting their possessions as in many cases security is not as robust in rental properties, and renters are overrepresented when it comes to break-ins” he said.
SGIO claims data reveals renters are 50 per cent more likely to experience burglary than owner occupiers and unit dwellers are 20 per cent more likely to be burgled than residents in free-standing houses.
“Often renters do not appreciate just how valuable the combined value of everything they own is – particularly with expensive electronic equipment such as laptops and audio equipment,” Mr Tierney said.
How WA renters fare with their counterparts in the eastern states – SGIO survey*
• 27% of WA renters are cutting back on food expenditure compared with 8% of renters nationally
• 50% of WA renters don’t have contents insurance compared with a national average of 31%
• 100% of WA renters believe it is becoming more expensive to rent compared with 81% nationally
• 88% have experienced regular rent increases at their property compared with 62% nationally
• 67% believe there is too much competition for properties compared with a national average of 52%
* SGIO Research conducted by Woolcott October 2008