"It's still very much a landlord's market."
Rents in Australia have reached an all-time high as both house and unit rentals saw 12% price growth over the past year, marking the strongest annual growth in 14 years.
This is according to the June 2022 rent report by digital property portal Domain, which said that the annual increase is indicative of a worsening rental crisis.
The June quarter saw the “longest continuous stretch of rental price growth,” revealed the Domain report, with house rents increasing for the fifth consecutive quarter, and unit rents rising for four quarters straight.
“Rents nationally are at an all-time record high and have recouped everything they lost during the pandemic, and then some,” said Nicola Powell, chief of research and economics at Domain. “The rent rises have been going on for so long now and, with 12 months the standard lease, a large proportion of tenants would have been impacted by them. It’s still very much a landlord’s market. We need to see more investment and more properties being made available for tenants.”
Powell explained that these trends were a result of high property prices seen at the height of the COVID-19 pandemic that locked people into the rental market for longer. The interest hikes may have also been another factor, with landlords passing on the weight of rate increases in terms of higher rent.
Additionally, the low level of investment between 2020 and 2021, plus rising household numbers, translated to fewer homes being available. This lack of supply was also aggravated by investors choosing to sell in order to take advantage of higher prices.
Brisbane recorded the highest price growth in the June quarter, according to the Domain report. House rents in the Queensland capital grew by 16.9% over the past year and 4% over the quarter, while unit rents jumped by 12.5% annually and 4.7% quarterly, translating to median prices of $520 for houses and $450 units.
Sydney saw the second highest jump as house rents increased by 12.7% year-over-year and 3.3% quarter-on-quarter to a median of $620, and unit rents rose by 11.7% annually and 5% quarterly to a median of $525.
Melbourne, meanwhile, came out as the most affordable capital city to rent a house in, with rents rising by only 2.2% in the quarter, revealing a median price of $460. However, renting a unit in the city became more expensive as prices soared by 10.8% over the past year and 5.1% over the quarter, landing at a median of $410.
