The Commonwealth Bank’s June Household Spending Index shows a decrease in spending among renters.

The Commonwealth Bank has highlighted a widening gap in Australia between renters and other groups. According to their latest household spending report, Australians without property ownership have reduced their expenditures, while those with mortgages or outright ownership are increasing their spending. Spending among renters has decreased by 0.9% over the year to June, whereas mortgage holders have increased spending by 1.5% during the same period. Australians who own their homes outright have raised their spending by 2.1% over the year.

Commonwealth Bank chief economist Stephen Halmarick explained, “If you look at spending by home ownership status, the report shows how challenging it is for renters. Their spending is significantly weaker compared to mortgage holders or outright owners. For renters, particularly younger cohorts, their income isn’t rising as fast as housing costs, forcing them to cut back on spending to manage expenses.”

Since March 2020, the national rental vacancy rate has plummeted by 43%, as per data from REA’s PropTrack, driven by soaring housing demand outpacing supply.