As RBA interest rates rise, Perth’s swanky suburbs are proving to be the worst for housing stress

“That means borrowers are facing a cumulative increase of $363 since the first rate hike in May on a $500,000 home loan.

“This will weigh on household savings and force some to dip into savings to cover additional home loan costs and basic life needs.”

Graham Cook, head of consumer research, said one in four homeowners were struggling to meet their monthly mortgage payments in June.

“There is no light at the end of the tunnel yet, with our panel predicting at least two more rate hikes to come,” he said.

CoreLogic research director Tim Lawless said indebted households were in the grip of a tightening grip, with inflation on essentials such as fuel and food, as well as l rapid rise in the cost of debt, which squeezes balance sheets.

“Households are increasingly sensitive to rate hikes due to record levels of debt,” he said.

“The RBA is aware of this, noting that the household sector is likely to be the source of ongoing uncertainty, particularly spending behavior, as households reduce non-essential spending to focus on servicing debt and non-discretionary goods such as food and fuel. ”

The 2021 census found that the share of tenants under financial pressure due to housing costs was even higher.

In Mandurah, 39.7% of tenants paid more than 30% of household income in rent, while in Murray the share was 36.5%, Claremont 35.2%, Armadale 33.2%, Mosman Park 34.1% and Wanneroo 33.2%. .

In Greater Perth, one in three renters had rents above 30% of their household income.

CoreLogic’s Quarterly Rent Review released on Wednesday found that rents in Perth rose 2.6% from the March quarter and 6.7% over the past year to a median of $515 per week.

The most affordable suburb to rent is Midvale at a median of $388 per week.

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