Prices rise at fastest rate since before the pandemic
Australia’s rental crisis continues as prices rise at the fastest rate since before the pandemic.
Rents rose 2% nationally during the March quarter to hit a median of $500 per week, according to a report by The Australian.
Median advertised rental prices have risen 11.1% over the past year, the fastest growth rate since before the COVID-19 pandemic, according to a PropTrack report. During the March quarter, rents increased in every market except for the ACT and regional South Australia, where prices were flat, The Australian reported.
Paul Ryan, senior economist at PropTrack, said that capital city rents spiked by 4% quarter over quarter and by 13% annually.
“With rental market conditions extremely tight, we expect rental prices will continue to climb,” Ryan told The Australian. “This is particularly the case in capital cities, where rent increases have not yet eased since accelerating in early 2022.”
Skyrocketing rents have spurred calls for government to step in with everything from rental caps to restrictions on short-stay accommodation – although both of these strategies have been blasted by industry groups.
Rising growth rates
Perth saw the largest rent increase over the quarter at 8.7%. Annual rises of more than 10% were seen in Sydney (11.3%), Brisbane (15.6%), Adelaide (13.3%) and Perth (11.1%), The Australian reported.
With high demand and an increase in migration, the rate of rent growth nationally isn’t slowing down as landlords are flooded with prospective tenants, the publication said.
Perth and regional Victoria saw their fastest quarterly rate of rent growth since before the pandemic. However, overall regional rents only increased 2.2% over the quarter and 4.5% annually – effectively a slowdown in this overheated market.
“In the regions, rent growth has slowed after significant rent increases throughout the pandemic,” Ryan told The Australian.
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City rental markets, on the other hand, are booming. House rents rose 65 over the quarter, while unit rents rose 4.3%, The Australian reported. Both house and unit rents have spiked more than 10% over the year.
The rent crisis comes as affordability issues continue to plague the wider housing market. A recent CoreLogic report found that despite skyrocketing rent prices, it’s cheaper to rent a house than buy one in more than 90% of Australian suburbs.
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