Why more Australians on high incomes are renting
This may be contributing to continually rising weekly rents
2 min
There has been a substantial increase in the number of Australians earning high incomes who are renting their homes instead of owning them, and this may be another element contributing to higher market demand and continually rising rents, according to new research.
The portion of households with an annual income of $140,000 per year (in 2021 dollars), went from 8 percent of the private rental market in 1996 to 24 percent in 2021, according to research by the Australian Housing and Urban Research Institute (AHURI). The AHURI study highlights that longer-term declines in the rate of home ownership in Australia are likely the cause of this trend.
The biggest challenge this creates is the flow-on effect on lower-income households because they may face stronger competition for a limited supply of rental stock, and they also have less capacity to cope with rising rents that look likely to keep going up due to the entrenched undersupply.
The 2024 ANZ CoreLogic Housing Affordability Report notes that weekly rents have been rising strongly since the pandemic and are currently re-accelerating. “Nationally, annual rent growth has lifted from a recent low of 8.1 percent year-on-year in October 2023, to 8.6 percent year-on-year in March 2024,” according to the report. “The re-acceleration was particularly evident in house rents, where annual growth bottomed out at 6.8 percent in the year to September, and rose to 8.4 percent in the year to March 2024.”
Rents are also rising in markets that have experienced recent declines. “In Hobart, rent values saw a downturn of -6 percent between March and October 2023. Since bottoming out in October, rents have now moved 5 percent higher to the end of March, and are just 1 percent off the record highs in March 2023. The Canberra rental market was the only other capital city to see a decline in rents in recent years, where rent values fell -3.8 percent between June 2022 and September 2023. Since then, Canberra rents have risen 3.5 percent, and are 1 percent from the record high.”
The Productivity Commission’s review of the National Housing and Homelessness Agreement points out that high-income earners also have more capacity to relocate to cheaper markets when rents rise, which creates more competition for lower-income households competing for homes in those same areas.
ANZ CoreLogic notes that rents in lower-cost markets have risen the most in recent years, so much so that the portion of earnings that lower-income households have to dedicate to rent has reached a record high 54.3 percent. For middle-income households, it’s 32.2 percent and for high-income households, it’s just 22.9 percent. ‘Housing stress’ has long been defined as requiring more than 30 percent of income to put a roof over your head.
While some high-income households may aspire to own their own homes, rising property values have made that a difficult and long process given the years it takes to save a deposit. ANZ CoreLogic data shows it now takes a median 10.1 years in the capital cities and 9.9 years in regional areas to save a 20 percent deposit to buy a property.
It also takes 48.3 percent of income in the cities and 47.1 percent in the regions to cover mortgage repayments at today’s home loan interest rates, which is far greater than the portion of income required to service rents at a median 30.4 percent in cities and 33.3 percent in the regions.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
The glass, steel and concrete structure by contemporary architect Ed Niles incorporates elements of the traditional design philosophy and the symbolism of the lucky No. 8
4 min
A contemporary home designed with Feng Shui principles in Malibu that once asked $57.5 million will be auctioned in June.
The architectural home lies on the Pacific Coast Highway in Western Malibu, a surf spot known for its pristine beaches and celebrity owners. Concierge Auctions, which is handling the sale, expects bidding to open between $10 million and $19 million.
The long, narrow lot is about four-fifths of an acre and boasts 75 feet of private beachfront. Owner Wei-Tzuoh Chen, a California-based nephrologist, purchased the property in 2003 with his wife, Carrie Chen, for around $2.25 million. They originally intended to knock down the existing house and develop four condo units but then decided to keep the location for themselves as a vacation property.
“I’ve lived in many beachfront houses in different parts of Southern California, but this is the finest sandy beach I’ve ever seen,” he said, distinguishing it from places where the water comes right up to the house during high tide.
The couple spent over six years building an 8,206-square-foot glass, steel and concrete residence with Malibu architect Ed Niles, who Chen said “spoke to his taste as a contemporary, not modern, architect.”
A native of Taiwan, Chen wanted to incorporate elements of Feng Shui into Niles’s signature futuristic design, inspired by the Guggenheim in New York City and the Broad in Los Angeles.
“I wanted a mini-museum in which to display my collection of Chinese antiques in a futuristic setting,” he said.
The property was previously listed in March 2023 at $57.5 million by Madison Hildebrand, president and CEO of the Malibu Life Team (and star of Bravo TV’s “Million Dollar Listing Los Angeles”), along with Jennifer Chrisman of Compass, Wendy Wong of Treelane Realty Group and Katherine Quach of Treeline Realty & Investment. The agents are collaborating with Concierge Auctions, which will launch the auction on its online marketplace in mid-June. It is currently listed at $42 million.
The residence juxtaposes organic with geometric shapes; curved and straight lines mingle inside and out.
As shown in an aerial photo, it consists of a series of circles, semi-circles, triangles and rectangles. “There are basically eight different-shaped structures in a configuration,” Chen said, explaining that the number eight symbolises good fortune in Chinese numerology.
Integrating Feng Shui elements was accomplished in numerous ways.
“Feng means ‘wind,’ and the idea is to have air flowing throughout,” Chen said. “Based on a survey of the site, Niles designed it so that when you open the door on the ocean side, the breeze will circulate into every area of the house.”
He added that the architect also designed the house around the sun’s movement, capturing the ever-changing light via over 45 custom skylights. “The architectural perspective of the house shifts every minute of the day.”
Feng Shui also refers to the flow of movement, which starts from the street-side security gate, where a short driveway descends to the house below. “The concept of the Chinese home is to be unassuming from the front and then to provide a wow factor when you walk inside,” he explained.
Steps lead down to the glass-walled entrance with a soaring steel-paned glass ceiling. This spills into a cavernous space framed by massive architectural concrete walls and a floating bridge overhead. Two expansive sets of built-in stairs lead in different directions—one connects with a floating staircase to an upper level. The other flows into the ground floor living area and kitchen, with views to the horizon on two sides. A wall of frameless glass doors opens onto the back patio and an outdoor dining area.
Two separate upper-level spaces—one rounded, the other a triangle—jut out over the patio, creating covered sitting areas below. The round space comprises the primary suite, featuring a wood-panelled sleeping area and a marble bathroom with a cylindrical Japanese stainless-steel tub overlooking the ocean. A 50-foot bridge and short flights of stairs lead to three more bedrooms with private decks.
“Every split level has its own wing with an en-suite bedroom, so they are private with no shared walls, and everyone gets to take advantage of the view,” Hildebrand said. “The guest house is separate with its own private outdoor space.”
Two marine-coated red steel sculptures in the back play on the shapes and number themes. One is an immersive red triangular sculpture that doubles as an enclosure for a small dining table; the other is a humanistic red figure-eight piece. Chen confirmed that both are part of the sale, as is a larger-than-life green butterfly sculpture at the entrance.
Inlaid rectilinear stepping stones cut a diagonal across the lawn to the sandy beach, bordered by large rocks. Although it is technically open to the public, Hildebrand said it is not easily accessible or widely known.
Beyond the interiors, the outdoor entertaining spaces—counting an in-ground fire pit with stone crescent benches—can accommodate up to 100 guests. Six uncovered parking spaces are available in addition to a two-car garage.
“It also has a tide pool where you can see sea urchins, mussels and other marine life on the rocks in ankle-deep water at low tide, which is also very rare here,” Chen said. “That’s the reason I chose this lot over others. It’s such a unique location.”
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This stylish family home combines a classic palette and finishes with a flexible floorplan
