Australia’s rental housing market is getting more and more costly, and there’s no slowdown in sight. Throughout the nation, rent rises to all-time highs, making life difficult for families of all income brackets.
A surprising $627 weekly median rent throughout the country is pushed even higher by large cities like Sydney, and rental costs range from $770 per week in Sydney, to $547 in Hobart. The areas closest to city centers are experiencing the largest price increases since there aren’t enough rentals available, making renters compete fiercely for available space, according to property data provider CoreLogic’s latest rental market update.
Simultaneously, a growing number of high incomes (over $140,000 annually) are choosing to rent rather than buy. In 1996, just 8% of renters had a high income; by 2021, that percentage had risen to 24%, API reports.
Average rent spikes are not the only trend in the market. Significant rises are occurring in several suburbs close to big cities. For instance, in only six months, Campbelltown in Sydney experienced an increase in yearly rent increases from 9.1% to 13.4%! Jimboomba in Brisbane and Casey-North in Melbourne are experiencing comparable circumstances, with yearly rent rises in both places rising. The fact that even the areas around cities are getting more expensive to rent serves as a stark reminder of how urgent the problem is.
“Given there is little that can be done on the supply side for renters in the short term, reprieve in the rental market is most likely to come from a moderation in net overseas migration, as some temporary migrants start to depart, and arrival numbers normalise post-COVID,” the report said, according to 9 News.
“Centre for Population forecasts indicate this could occur from next financial year.
“Until then, renters may be seeking more shared accommodation, or exploring cheaper rental markets across the outer metro fringes or regional Australia.”
