Here’s what you need to know.
What did the report find?
In Sydney, one in five rentals were advertised under $400 per week a year ago, but in September 2022 that has fallen to one in 10.
The share of properties listed for rent on realestate.com.au for less than $400 per week fell to a record low 19.3 per cent of listings in September 2022, according to new research by PropTrack. Source: SBS News
In Hobart, Darwin and Canberra, less than one in 10 rental listings were for properties costing less than $400/week.
The total number of properties available for rent is 31.4 per cent lower since the start of the COVID-19 pandemic.
What is causing rental prices to increase?
“Vacancy rates are extremely low, the number of rentals listed on realestate.com.au is well down compared to where it was pre-pandemic, and in capital cities they’re own even compared to where they were a year ago.”
“There’s a lot of people who may be waiting for their new home to be built … and if that home were built, they’d be able to move into it now and stop renting, and that would open up a rental property for someone else.”
Have rate rises had an impact?
“If people can’t get into the new home market, they’re going to continue to be renting.”
The pandemic effect
“But the other is that we’ve seen a strong increase in rental demand, as renter households got smaller through the pandemic.
During the pandemic, Australia also experienced a spike in migration from cities to regional areas.
This internal migration has resulted in lower vacancy rates and higher prices in Australia’s regions, Mr Moore says.
“As a result, we’ve seen a lot of the available stock kind of snapped up and that’s persisted for much of the past two years … we’re seeing rents in some of these areas grow very quickly and vacancy rates close to zero.”
What happens next?
“We’re now getting quite a strong return with net immigration to Australia, and whoever comes to Australia needs somewhere to live.”