Where is rent most affordable in the New England North West?

The National Shelter-SGS Economics and Planning Rental Affordability Index, released today, shows regional centres like Bathurst, Maitland, Wagga Wagga, and nearly the whole NSW coastline are offering "moderately unaffordable" dwellings for renters on an average income.

The report's authors told the Leader as the problem spreads from coastal centres into regional NSW, even inland regions like Tamworth will soon become prohibitively expensive when it comes to renting.

"Over time that would be the risk, and at the same time there aren't as many jobs in those areas," SGS Economics and Planning principal Ellen Witte said.

"When we started the index we really saw this problem primarily concentrated in the capital cities and it's been spreading like an oil stain across all the regions."

The index ranks an area's affordability by comparing its median rents to a rental applicant's income and assigns a numerical score, with a score of 100 being the "critical threshold" for measuring an area's housing stress.

A score below 100 is considered 'unaffordable,' between 100 and 120 is 'moderately unaffordable,' 120 to 150 is 'acceptable,' and above 150 is 'affordable'.

For the average renter in New England, Warialda has the most affordable rents with a score of 192, while Tamworth, Gunnedah, and Kootingal barely make it into the 'acceptable' category with scores of 126.

Manilla, Moree, Glen Innes, Guyra, and Warialda are the only places left in the New England North West with 'affordable' rents, according to the index.

All other areas are considered 'acceptable' for renters on an average income, though Tamworth, Gunnedah, Kootingal, Narrabri, and Tenterfield are all within 10 points of falling into the 'moderately unaffordable' category.

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The index's authors emphasised that the issue of affordability is felt particularly hard by the most vulnerable members of society, including pensioners, single parents, and the unemployed.

Below the 100-score mark, a score from 80 to 100 is considered 'unaffordable,' 50 to 80 is 'severely unaffordable,' and below 50 is 'extremely unaffordable'.

A breakdown of Tamworth's affordability shows rents are unaffordable for single parents and couples on pensions, with single pensioners falling into the 'severely unaffordable' range.

Due to a shortage of social housing in the region, rents in Tamworth are considered 'extremely unaffordable' for a single person on benefits.

"If nothing changes, there's going to be enormous pressure on households in situations with unsafe living conditions, crowded houses, or of course struggling with homelessness," Ms Witte said.

"In the work we've done with shelters, they used to mainly get people with no income or mental health problems, but now we're increasingly seeing families with children and stable jobs even ending up at shelters asking for a roof over their head for the night."

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