A recent report has revealed that a household income of $70,000 per annum would not be able to afford a rental property in Mandurah.
The latest release of the Rental Affordability Index revealed households earning up to $70,000 per annum would find rents unaffordable in areas such as Mandurah and Busselton.
It also revealed that Dunsborough is one of the least affordable towns in the South West with a household income of $90,000 per annum still not be able to afford a rental property in the tourist destination.
The index found, for the average regional WA household income, the South West was affordable with Margaret River, Collie, and Esperance being among the most affordable areas.
This was due to a combination of relatively high household incomes and a steep decrease in rents since the end of the mining boom
However, rents are extremely unaffordable for lower income households such as Newstart recipients and those reliant on the pension.
For example, in Dunsborough, a Newstart recipient would need to pay around 100 per cent of their available income on rent or 50 per cent for a pensioner couple.
People on Newstart are spending 100 per cent of their income on rent, leaving little to no money for necessities such as food, medical care and other needs.
The index showed that, in most states, people living in the capital city and renting earn more than their country counterparts, but it isn't the case in WA.
The lack of affordable housing is creating homelessness.
- Shelter WA chief executive officer Michelle Mackenzie
The median rental household in Greater Perth has a gross income of $85,900 per annum while the median rental household in regional WA has a gross income of $91,800 per annum.
In terms of rental affordability, regional WA has a score of 157 on the index.
The index found affordability in regional WA has grown steadily recently but fluctuations from 2017-2019, suggest the growth in affordability has plateaued.
The average household seeking to rent in regional WA would be facing rent levels at around 19 per cent of its income, which is considered to be acceptable.
Read More on Mandurah's homelessness issue:
National Shelter executive officer Adrian Pisarski said higher average incomes made it even more unaffordable for low income households.
"In the WA mining regions, even those earning up to $85,000 face unaffordable rentals," he said.
Shelter WA chief executive officer Michelle Mackenzie said as a society we have created an awful reality for many people.
"The lack of social and affordable housing in WA means many Newstart recipients are often marginally housed, or in unsafe and unsuitable housing," she said.
"We have a created a society where people, just because they are poor, are at risk of hunger, stress and poorer health. The lack of affordable housing is creating homelessness."
