Carrie Bradshaw Index reveals the truth about Perth’s rental disparity

Rents may be higher in Perth’s better suburbs but according to the Carrie Bradshaw Index, renters in Cottesloe, Wembley and West Leederville have it the easiest.

Coined by analysts at The Economist, the Carrie Bradshaw index explains how some renters — like its namesake in the Sex and the City series — can continue living large amid the cost-of-living crisis.

Ray White economist Nerida Conisbee said the index — which assesses the cost of renting a unit against local tenants’ incomes — shows those in Cottesloe, West Leederville and Wembley pay 25 per cent of their salary on their lease.

The same index shows Perth’s battlers, including students, welfare recipients and the working poor, are paying a disproportionately high price amid the housing crisis.

Renters in Girrawheen, as well as student-strong Wilson and Murdoch, fork out about half their income on their rent.

“(In) Cottesloe . . . people with very high incomes live there and in comparison to these incomes, rents are quite affordable,” Ms Conisbee said.

“This is consistent with the lifestyle of Carrie Bradshaw — likely earning quite a bit of money — and renting in an expensive city with a lot of apartments, (like) New York.

“For Australia, the Carrie Bradshaw index holds true.”

Caporn Young Liliana Talemaitoga said the index was reflected across her own listings, with the tenants she had placed in Perth’s wealthier suburbs paying 23 per cent of their income on rent, compared to 36 per cent in cheaper areas like Gosnells.

She said the greater supply of units in the western suburbs — driving largely by developers wanting to build in areas where they can make the most profit — helped keep rents in check.

But while the index looks at relative affordability, renters also appear to get more bang for their buck in Perth’s exclusive suburbs.

Analysis by The West Australian shows units in Perth’s better suburbs are often on par, or even cheaper, than those in battler areas.

Ms Talemaitoga said landlords in the western suburbs had generally held the units for a longer period of time and had lower or sometimes non-existent loan costs compared to those in cheaper areas.

In battler suburbs, there was often greater pressure on landlords to maximise rents to cover higher debts.

Analysis by The West Australian reveals a mismatch in value for money when comparing two-bedrooms units in upmarket Cottesloe and Subiaco with Cloverdale.

In Cottesloe, a two-bedroom unit covering 78sqm, including balcony, in a 60s-style apartment block in Cottesloe is currently seeking $780 per week.

While a lofty price, it is set on a quiet street among multi-million dollar homes, the living room and balcony overlooking the suburb’s famous pines and the ocean, which is only 100m away.

It is also walking distance to the area’s upmarket bars, restaurants and cafes. It has one bathroom and a parking spot.

In Subiaco, a modern and upmarket two-bedroom unit with two parking spaces, set across 141sqm including courtyard, is on the rental market for $650 a week.

Set only a few hundred metres of shops and the train station, it includes perks like solar panels and reverse cycle air conditioning.

In Cloverdale, a range of two-bedroom, two-bathroom units in one complex are on the market for a prices ranging from $650, $675 and “from $750”, but in a much less desirable location.

The 73sqm single level Cloverdale units, with parking for one car each, are modern, with two bathrooms rather than one, but the location is much less luxurious — set only 2km from a Perth Airport runway.

Another example of a mismatch in value for money includes a three-bedroom unit in the western suburb of Wembley, set in a leafy, well-maintained Lakeside Wembley complex with a pool and BQQ surrounded by manicured gardens.

Currently on the rental market for $650 a week, it backs on to Herdsman Lake, set 6km from the city and 6km to Floreat Beach, with a primary school, shops and cafes within walking distance. A train station and the freeway entry is within 3.5 kilometres.

By comparison, a three-bedroom townhouse in Balga is renting for only $15 a week less, at $615 a week.

While the Balga bedrooms are bigger, the home is twice the distance from the CBD and 9km from the beach, with much less surrounding amenity.