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The 2011 ABS census showed that nearly 2.29 million
dwellings were rented, up considerably from 1.77 million at
the 1996 census. The growth in rental properties and a need
to better understand tenant needs saw LJ Hooker undertake
a survey of tenants. The findings help to shine a light on the
key drivers, motivations and concerns of tenants.
1. Renting is for young and old alike
A broad range of age groups rent properties right across
Australia; it’s not just the stereotypical university students and
backpackers. In fact, tenants are more likely to be in the older
age groups.
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55% of tenants are aged 35 years and older.
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45% of tenants are aged under 35 years.
2. Tenants have a diverse range of incomes
The stigma attached to renting is that it’s for low–income
earners; however, the survey results showed that tenants have a
diverse range of incomes.
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52% of tenants have a household income of under
$75,000 per year.
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21% of tenants have a household income of more
than $100,000.
3. Why do tenants choose to rent?
Our survey found that there are many reasons why people
choose to rent a property. These factors include lifestyle
choices, work, personal relationship circumstances and saving
to purchase their own home.
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33% of tenants are unable to afford to buy a property.
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27% of tenants are renting to save money to purchase a
property.
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29% choose to rent because of lifestyle decisions.
4. Tenants aspire to buy a property of their own
Home ownership continues to be the end goal for the majority
of tenants. However, a considerable proportion are confident in
the security of their tenure and that they will be living in the same
rental property over the long term.
In 5 year’s time:
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44% of tenants see themselves buying and moving
into their own property.
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26% will be in the same rental property.
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30% think they will still be renting but in a different property.
5. Security of tenure is the chief concern of tenants
Overwhelmingly, the most important issue for tenants is the
security of tenure with 28% of respondents choosing this as
their number one concern. Rental affordability is another key
concern for tenants, making up 21%, and goes hand in hand
with their concerns around the lack of rental stock (6.8%) and
competition with other tenants (11.2%). Positively, 14% of
tenants have no concerns or issues.
Conclusion
Overall the LJ Hooker Tenant Survey found that there is not a
“typical” tenant type. A broad range of household types across
different age groups and income levels rent various types of
properties for a host of reasons. Therefore, it is important that
there is an adequate and diverse supply of rental properties
available to help to reduce rental stress and improve affordability.
In addition, regulations that govern landlords, tenants and
strata schemes need to be progressive and rigorous enough to
provide confidence and security to all parties.
Purchasing a property is still
the end game for many tenants
A lot of Australians still view
home ownership as the
“Australian dream”. However,
for many buying a property
is either too expensive or
doesn’t fit with their lifestyle,
investment strategy or personal
circumstances.
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