Relief for renters: Australia records biggest rent decline in 4 years, research says

Rent is often the largest expense for many households, consuming a substantial portion of their income. For families and individuals alike, the high cost of housing can be a major financial strain, affecting everything from savings potential to overall quality of life.

In a turn of events that has caught many by surprise, Australian renters have been given a glimmer of hope as advertised rents across the nation's capital cities have seen the most significant monthly drop in four years.



According to the latest figures from SQM Research, the average rent in the capitals decreased to $723 last month, which represents a 0.5 percent decline over the past 30 days.

This is the most substantial monthly fall since April 2020, when the world was just beginning to grapple with the uncertainties of the COVID-19 pandemic.


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SQM Research indicated that the average rent in capital cities has decreased. Image source: Freepik



The decrease in rental prices comes alongside forecasts that vacancy rates are expected to increase over the winter months.

However, Louis Christopher, the Managing Director of SQM Research, cautioned that this does not signal the end of the rental crisis.



He stated: ‘The full year outlook remains the same in that we expect overall tight vacancy rates to be with us for 2024, driven by a fall in dwelling completions relative to ongoing growing demand.’

‘Nevertheless, it might provide some minor relief to tenants who still have excessive difficulties in finding longer-term rental accommodation around the country,’ he added.

Delving into the specifics, Sydney's advertised rents have been a significant contributor to the overall decline, with a 1.1 per cent drop to $844 a week.

Darwin experienced the most considerable decrease at 6.3 per cent, bringing rents down to $566 a week.

Melbourne's rents remained stable at $635 a week, while Adelaide bucked the trend with a rapid rental rise of 2.1 per cent to $593.



The national median weekly asking rent for a dwelling now sits at $624 per week.

Sydney continues to lead with the highest weekly rent for a house at $1,050 per week, while Hobart remains the most affordable capital city for unit rents at $463 per week.


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The calculation of vacancies by SQM is based on online rental listings advertised for three weeks or more, compared to the total number of established rental properties. Source: SQM Research



Vacancy rates in Sydney are currently at 1.4 per cent, with 10,039 rental dwellings available.

Melbourne also saw an uptick in its vacancy rate, increasing to 1.3 per cent from 1.1 per cent in April this year.



Across Australia, the total number of rental vacancies now stands at 35,641 residential properties, up from 33,177 vacancies recorded in April.

For our readers, particularly those over 60 who may be renting or assisting family members with their rental situations, this news could be a silver lining amidst the mounting cost-of-living pressures in recent years.

It's an opportune moment to reassess your rental agreements and explore the market for potentially more affordable options.

As we navigate through these changing times, it's essential to stay informed about the trends in the rental market.

Whether you're looking to move or renegotiate your current lease, understanding the dynamics at play can help you make the best financial decisions.

If you're having difficulty paying rent, there are government initiatives available to help. Rent Assistance is a supplementary payment for individuals receiving specific Centrelink payments who also have accommodation expenses such as household rent, retirement village fees, or mooring fees for boats and caravans. You can learn more about Rent Assistance here.
Key Takeaways
  • Advertised rents in Australian capital cities have experienced the largest monthly drop in four years, offering some relief to renters.
  • Average rents in the capitals decreased by 0.5 per cent last month, with the significant fall partly attributed to the pandemic's impact in April 2020.
  • Despite the drop, experts from SQM Research suggested that the rental crisis is not over, forecasting tight vacancy rates to continue into 2024 due to lower dwelling completions and rising demand.
  • Sydney and Darwin saw notable decreases in advertised rents, with Sydney recording a 1.1 per cent fall and Darwin experiencing a 6.3 per cent dip. Conversely, Adelaide's rent rose by 2.1 per cent.
We invite you to share your experiences and thoughts on this latest development in the comments below.

Have you noticed a decrease in rental prices in your area? Are you considering a move to take advantage of the current market conditions? Let us know in the comments below!
 
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Not sure how rent has gone down in NSW or at least Sydney

One of my daughters rent went up from $450 to $625 a $175 increase !!! She lives in South Hurstville and is in a town house.

Another daughter who is in a unit in Bankstown, her rent went up from $350 to $500 an increase by $150

My niece who only moved into her house 12 months ago , her rent went up $50.

How or who says rents has gone down ?

Another daughter owns her house and has a huge family room or man cave down stairs she isnt really using and offered it rent free to one of her siblings so they coukd save but no one took her up on the offer. I'm now thinking one will take up her up on her offer . 🤔
 
I am sick and tired of hearing about renters. I saved hard and bought a one-bedroom unit to get on the property ladder. I had to question if I could afford to buy a magazine. I got through this all by prioritising and doing without. Now as a homeowner I get nothing.
 
I am sick and tired of hearing about renters. I saved hard and bought a one-bedroom unit to get on the property ladder. I had to question if I could afford to buy a magazine. I got through this all by prioritising and doing without. Now as a homeowner I get nothing.
What you get is the stability of having your own home. You did well, but it's not always that simple. And when did you buy?
 
What you get is the stability of having your own home. You did well, but it's not always that simple. And when did you buy?
I did the same, and I still look after the cents and the dollars will look after themselves. We cook our own meals etc. Hardly ever take away. Look at petrol prices and save a few cents a litre etc. AND we now own our home, with no mortgage.
 
I am sick and tired of hearing about renters. I saved hard and bought a one-bedroom unit to get on the property ladder. I had to question if I could afford to buy a magazine. I got through this all by prioritising and doing without. Now as a homeowner I get nothing.
The problem with owning a unit is that you have to pay ridiculously high strata rates
 
I am sick and tired of hearing about renters. I saved hard and bought a one-bedroom unit to get on the property ladder. I had to question if I could afford to buy a magazine. I got through this all by prioritising and doing without. Now as a homeowner I get nothing.
I rent unfortunately at 65 but I have no choice after two failed marriages and a loss of my business through no fault of mine. I’m now renting with a cat and an unsure future living day to day. So glad you’re sick of hearing about renters so have a nice life.😊
 
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I am sick and tired of hearing about renters. I saved hard and bought a one-bedroom unit to get on the property ladder. I had to question if I could afford to buy a magazine. I got through this all by prioritising and doing without. Now as a homeowner I get nothing.
Gosh! There are many reasons why people have to rent so please don't be so smug about owning your small unit. I had property but because I had a long term sickness, I lost everything including my employment and Superannuation. I now have to rent and I'm 75 years old. It's not easy. Be happy with your accomplishment, but never lose sight of the fact that there are others who simply have to rent.
 
I am sick and tired of hearing about renters. I saved hard and bought a one-bedroom unit to get on the property ladder. I had to question if I could afford to buy a magazine. I got through this all by prioritising and doing without. Now as a homeowner I get nothing.
Well, aren't you the judgemental one? Not everyone had the opportunity to scrimp and save to buy their own home. Some of us have lived with chronic illness our entire lives and that limited our working hours and our ability to save and/or earn a good income. Guess what? We are sick and tired of the lack of empathy and understanding shown by people who just want to run renters down!
 
Well, aren't you the judgemental one? Not everyone had the opportunity to scrimp and save to buy their own home. Some of us have lived with chronic illness our entire lives and that limited our working hours and our ability to save and/or earn a good income. Guess what? We are sick and tired of the lack of empathy and understanding shown by people who just want to run renters down!
Yeah people like that are so out of touch with reality
 
A single room with no widow and shared cooking facilities, A/C and heaters no allowed goes... wait for it..... $750 a week in the city.
Wow, that sounds like it should be illegal. Unfortunately there are so many people desperate for a roof over their heads that unscupulous landlords are getting away with overcharging and renting out rooms, spaces that should never be allowed to be rented out. Anyone who can afford to pay $750 for one room with shared amenities should be able to afford a mortgage on a small unit/ house if only they did not need such a large deposit. It is a shame banks aren’t more flexible with their lending, a lot of people paying these huge rents would be better off if they could be paying the money off their own place instead of paying dead money off someone else’s investment mortgage.
 
Wow, that sounds like it should be illegal. Unfortunately there are so many people desperate for a roof over their heads that unscupulous landlords are getting away with overcharging and renting out rooms, spaces that should never be allowed to be rented out. Anyone who can afford to pay $750 for one room with shared amenities should be able to afford a mortgage on a small unit/ house if only they did not need such a large deposit. It is a shame banks aren’t more flexible with their lending, a lot of people paying these huge rents would be better off if they could be paying the money off their own place instead of paying dead money off someone else’s investment mortgage.
That's nothing..... there was a place available in an underground car park that had been converted to rooms, no running water, no windows, no shower and the electricity was a dodgy extension cord.
 
I am sick and tired of hearing about renters. I saved hard and bought a one-bedroom unit to get on the property ladder. I had to question if I could afford to buy a magazine. I got through this all by prioritising and doing without. Now as a homeowner I get nothing.
But it's yours, & hopefully you won't be kicked out of a rental now like many others. The best thing I ever did. Got hit with high interest rates but still kept our house.
 

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