A new report says the rapidly increasing population continues to be a factor in the rental crisis, and politicians must answer for their policies that continue to drive up property prices.

Suburbtrends’ Rental Pain Index for August 2024 found that widespread rental stress across the country is worsening in many states.

The situation is particularly difficult in Western Australia and Queensland, where the rental price indications are 82 and 83 respectively.

Kent Lardner, founder of Suburbtrends, said the situation is reaching a critical point.

“The massive rise in property prices in recent years has created a significant gap for most first-time buyers, making purchasing a home without family financial support increasingly out of reach,” said Mr Lardner.

“Those who cannot move forward without such support will likely remain trapped in the private rental market.”

The percentage of areas with extreme rental distress (defined as RPI of 75 or higher) rose nationwide from 63 percent in July to 68 percent in August.

In NSW, there was a significant increase in areas with extreme rental distress from 61 percent to 67 percent. Average rents rose by 10 percent and tenants spent 33 percent of their income on rent.

In Queensland, the situation has deteriorated slightly, with 78 percent of areas now in extreme distress, up from 76 percent previously.

Rents in the state have increased by 10 percent, with renters spending 32 percent of their income on housing.

South Australia remained relatively stable but was still severely affected, with 80 percent of areas extremely affected.

Rents rose by 10 percent and accounted for 31 percent of tenant income.

In the state of Victoria, rental shortages have increased sharply; in areas with extreme problems, the proportion rose from 64 percent to 71 percent.

Rents in the state rose 12 percent, but are still somewhat more affordable at 28 percent of renters’ income.

There was a significant deterioration in Western Australia, with the number of areas with extreme problems increasing from 72 percent to 77 percent.

The state experienced the highest rent increases at 17 percent, with tenants now spending 32 percent of their income on housing.

The real cause of the problem lies in the discrepancy between population growth and housing supply, Lardner said.

“Population growth and housing cannot be considered as independent policy areas; they must be closely linked to ensure sustainable development,” he said.

“Without harmonisation of these measures, the rental crisis will only worsen.”

He said the situation was leading to an increased risk of displacement and homelessness, as reflected in the increasing demand for specialised homeless services.

Mr Lardner said immediate action was needed by policymakers to address the crisis.

“Immediate action is needed to provide emergency accommodation and support to those who are on the verge of losing their homes or are already homeless,” he said.

“This month’s data signals an impending reckoning for the political class that continues to pursue policies that continually drive up housing prices.”