Aussies grapple with skyrocketing rents as major cities hit record highs
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If you're a renter in one of Australia's major cities, you might want to sit down for this news—rental prices are ‘likely to continue’, according to an expert.
New data from PropTrack shows that over the past year, average weekly rents have exploded by 18 per cent in Sydney to a whopping $650 per week. You read that right— $650 a week just for a roof over your head!
Meanwhile, rents have jumped 14 per cent in Melbourne to $500 per week. Brisbane (12 per cent to $550), Perth (15 per cent to $540), and Adelaide (11 per cent to $500) have also seen double-digit growth.
Experts warn that this rental pain train isn't stopping any time soon. Cameron Kusher, PropTrack's Director of Economic Research, predicts rental growth will continue as population growth outpaces housing supply in the major capitals.
The sky-high rents are being fueled by a perfect storm of factors.
More migrants are returning to Australia after reopening borders, driving up demand.
At the same time, interest rate rises have crushed many people's dreams of buying their first home. They're unable to get a foot on the property ladder, so they're stuck renting for longer.
On top of this, some people who fled to regional areas during the pandemic are now drifting back to the capitals for work and study, putting further pressure on capital city rentals.
The impact on renters, on those trying to make ends meet, is immense.
'Just got a notice of rent increase. $200 extra a week. We're already paying $900, which is ridiculous. $1100 a week is an absolute joke,' vented one frustrated Sydneysider on social media.
'Telling me to move to the outer suburbs does nothing to address the rental crisis. Rents are soaring everywhere,' they added.
A second user replied, 'That's a lot of rent. They need to provide more support for renters with these rent increases.'
'This is wrong... How can they get away with that?' a third commented.
While the rampant rental rises may be great news for landlords and real estate agents, renters are increasingly finding themselves stretched to breaking point.
Mr Kusher suggested that renters might find themselves in a challenging situation, possibly having to return to shared housing arrangements or needing to rent out spare rooms or extra space to manage the rising rental costs.
He also said he expects continued growth in the coming quarter and into the following year in major cities, but he believes it's unlikely that the increase will be as significant as what was observed in the past year.
'It's hard to imagine rents going up 36 per cent in two years in the case of Sydney,' he added.
When can Aussies expect a decrease in rental prices?
According to PropTrack economist Angus Moore, renters, especially those in major cities, shouldn't anticipate much relief in the short term.
He suggested that rental pressures will likely persist, particularly in Sydney and Melbourne. However, there is a glimmer of hope in other cities where signs indicate a slowdown in rental price increases.
Looking ahead, some relief might be on the horizon.
Moore noted an increase in investor activity and a growing number of rental properties entering the market, coupled with fewer investors selling their properties, at least on an overall scale.
This shift is gradually increasing the supply of rental properties, but it's a slow-moving process.
What support is available for renters?
According to Penny Carr, the CEO of Tenants Queensland, an organisation providing advice and advocacy for renters, anyone feeling the strain of rising rental costs should seek advice.
Conversation with someone knowledgeable in the field can clarify and guide what actions to take.
Renters can also try negotiating rent increases with their landlords. Exploring potential subsidies or support programs state governments offer is also highly recommended.
Carr also proposed that state and federal governments should limit the frequency and extent to which rents can be raised.
'We think it is fair for rents to be increased, but there should be limits on that,' she said. 'The limit should be once annually, at the rate of the Consumer Price Index, and that's fair for both sides.'
With rents rising faster than wages, experts agree more needs to be done to increase the affordable housing supply.
Members, do you have tips or stories to share about rising rents? Let us know in the comments below!
New data from PropTrack shows that over the past year, average weekly rents have exploded by 18 per cent in Sydney to a whopping $650 per week. You read that right— $650 a week just for a roof over your head!
Meanwhile, rents have jumped 14 per cent in Melbourne to $500 per week. Brisbane (12 per cent to $550), Perth (15 per cent to $540), and Adelaide (11 per cent to $500) have also seen double-digit growth.
Experts warn that this rental pain train isn't stopping any time soon. Cameron Kusher, PropTrack's Director of Economic Research, predicts rental growth will continue as population growth outpaces housing supply in the major capitals.
The sky-high rents are being fueled by a perfect storm of factors.
Rents continue to surge in major capital cities. Credit: Unsplash/Joel Overbeck.
More migrants are returning to Australia after reopening borders, driving up demand.
At the same time, interest rate rises have crushed many people's dreams of buying their first home. They're unable to get a foot on the property ladder, so they're stuck renting for longer.
On top of this, some people who fled to regional areas during the pandemic are now drifting back to the capitals for work and study, putting further pressure on capital city rentals.
The impact on renters, on those trying to make ends meet, is immense.
'Just got a notice of rent increase. $200 extra a week. We're already paying $900, which is ridiculous. $1100 a week is an absolute joke,' vented one frustrated Sydneysider on social media.
'Telling me to move to the outer suburbs does nothing to address the rental crisis. Rents are soaring everywhere,' they added.
A second user replied, 'That's a lot of rent. They need to provide more support for renters with these rent increases.'
'This is wrong... How can they get away with that?' a third commented.
While the rampant rental rises may be great news for landlords and real estate agents, renters are increasingly finding themselves stretched to breaking point.
Mr Kusher suggested that renters might find themselves in a challenging situation, possibly having to return to shared housing arrangements or needing to rent out spare rooms or extra space to manage the rising rental costs.
He also said he expects continued growth in the coming quarter and into the following year in major cities, but he believes it's unlikely that the increase will be as significant as what was observed in the past year.
'It's hard to imagine rents going up 36 per cent in two years in the case of Sydney,' he added.
When can Aussies expect a decrease in rental prices?
According to PropTrack economist Angus Moore, renters, especially those in major cities, shouldn't anticipate much relief in the short term.
He suggested that rental pressures will likely persist, particularly in Sydney and Melbourne. However, there is a glimmer of hope in other cities where signs indicate a slowdown in rental price increases.
Looking ahead, some relief might be on the horizon.
Moore noted an increase in investor activity and a growing number of rental properties entering the market, coupled with fewer investors selling their properties, at least on an overall scale.
This shift is gradually increasing the supply of rental properties, but it's a slow-moving process.
What support is available for renters?
According to Penny Carr, the CEO of Tenants Queensland, an organisation providing advice and advocacy for renters, anyone feeling the strain of rising rental costs should seek advice.
Conversation with someone knowledgeable in the field can clarify and guide what actions to take.
Renters can also try negotiating rent increases with their landlords. Exploring potential subsidies or support programs state governments offer is also highly recommended.
Carr also proposed that state and federal governments should limit the frequency and extent to which rents can be raised.
'We think it is fair for rents to be increased, but there should be limits on that,' she said. 'The limit should be once annually, at the rate of the Consumer Price Index, and that's fair for both sides.'
With rents rising faster than wages, experts agree more needs to be done to increase the affordable housing supply.
Members, do you have tips or stories to share about rising rents? Let us know in the comments below!
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