This week's release of the annual Rental Affordability Index (RAI) report, proves that nothing has changed in the last twelve months. It is still unaffordable for the average wage earner to rent a house in Lismore and the coastal areas of the Northern Rivers.

We all know how expensive Byron Bay real estate is, but now it is one of the most unaffordable locations in the entire country. That mantle normally sits with Sydney's Eastern Suburbs, such as Vaucluse, or Melbourne's inner eastern suburbs, like Toorak.

As for Lismore, to achieve an acceptable affordability index for a 3-bedroom house, the household income would need to be $130,000 per year. As you move east, the situation becomes more unaffordable.

Alstonville is moderately unaffordable, Ballina and Brunswick Heads are unaffordable, and Byron Bay is severely unaffordable.

If you head west, Kyogle is the place to move to, as it is deemed affordable, while Casino is acceptable.

To give you some perspective, a Rental Index Score of 100 means that a person or household is paying 30% of their income in rent, which is commonly understood to be the threshold that is affordable depending on your income level, along with paying other cost-of-living expenses. Any more, and it tips people into what is termed rental stress.

The scales used in the index are:

• 40 or less indicates critically unaffordable rents
• 40-60 indicates extremely unaffordable rents
• 60-80 indicates severely unaffordable rents
• 80-100 indicates unaffordable rents
• 100-120 indicates moderately unaffordable rents
• 120-150 indicates acceptable rents
• 150 -200 indicates affordable rents
• 200 or above is very affordable rents.

Data from the 2021 Census had the average Lismore area wage at $1202 per week (the Lismore region was $879 per week), which equates to $62,504 per year. In Lismore, you need two people earning average incomes to make the rent acceptable.

A 4-bedroom home moves you into the moderately unaffordable index in Lismore, unaffordable for Alstonville, severely unaffordable in Ballina and extremely unaffordable in Byron and Kingscliffe.

Let's take a look at what the rental position is for one person earning the average income of $62,504 per year.

A 3-bedroom house is out of the question, even Kyogle is marked as unaffordable.

When you move to a 2-bedroom house or unit, Lismore is still unaffordable, with the rest severely or extremely unaffordable. Casino and Kyogle don't have enough 2-bedroom houses to be included in the index.

When it comes to 1-bedroom properties, Lismore is moderately unaffordable, Ballina and Mullumbimby are unaffordable, and Byron and Brunswick Heads are severely unaffordable.

Lismore also has a problem housing essential workers, such as police, nurses and paramedics. The average wage for entry-level essential workers is around the $80,000 mark.

A 1-bedroom unit is acceptable in Lismore, moderately unaffordable in Ballina and Murwillumbah and severely unaffordable in Byron and Kingscliff.

When you start adding more bedrooms, it becomes even less affordable, even when Casino and Kyogle come into play at 3+ bedrooms.

The bottom line is that Lismore and the Northern Rivers do not have enough housing or housing diversity. The days of every house being a 3-4-bedroom home on 600-800-square-metre blocks have gone. We need more 1- and 2-bedroom apartments and townhouses to house people earning the average wage.

This shows why experts say the government alone cannot solve the housing shortage. The current housing shortage is bigger than that. The solution needs to be in partnership with private developers.

Some are saying this is no longer just a social issue but an economic and productivity issue. Worse still, the solution is 15 to 20 years away due to a lack of government foresight and action.

What we need is a bipartisan approach from all levels of government to get the wheels continuously turning.