Rental Affordability Index
2023 indicator of rental affordability relative to household incomes.
2023 indicator of rental affordability relative to household incomes.
At a glance:
The RAI:
The annual rental affordability index (RAI) report is an easy-to-understand indicator of rental affordability relative to household incomes. Since its establishment in 2015, it has become a crucial tool for policymakers.
It helps track rental affordability trends and informs evidence-based policy decisions – highlighting nuances between places and the experiences of disadvantaged households.
For Perth and Western Australia it tracks city trends and state trends providing insights into how rental affordability impacts different places and household types. Its basis is customised data and analysis revealing affordability trends in the rental market, with a particular focus on low-income households.
The RAI uses the 30 per cent of income rule. Rental affordability is calculated using the following equation:
RAI = (Income/qualifying income )*100
Households paying 30 per cent of income on rent have a RAI score of 100, indicating these households are at the critical threshold level for housing stress.
To produce the Index each year, we work closely with our partners: National Shelter, Beyond Bank, and Brotherhood St Laurence.
Online Report:
Interactive Map:
Interactive Dashboard: