Australia is currently facing a rental crisis, with soaring rental prices reaching unprecedented levels in the past twelve months. This surge in rental costs, combined with limited property listings and a growing population, has created one of the toughest rental markets in decades.
New PropTrack data has unveiled Sydney as the most expensive city in Australia to rent, with the average weekly cost for a house soaring to $1,044 – a 15% increase from twelve months ago. Across Australia's combined capital cities, rent has skyrocketed by 17% over the past year.
The rental crisis is further exacerbated by record-low vacancy rates, plummeting to 0.7%, underscoring the glaring gap between housing supply and demand. For lower-income households earning $67,000 annually, nearly a third of their income is now dedicated to rent, highlighting the acute affordability challenge faced by many tenants.
In response to the worsening housing crisis, protests have erupted in Sydney, demanding urgent action to address the issue.
Amidst these challenges, buying property is increasingly seen as a more favourable option compared to renting. Here's a breakdown of how rental costs have surged across various Australian states:
Victoria: Rent in Melbourne has surged by an average of $70 per week, with suburbs like Aberfeldie and Kew East experiencing significant spikes in rental prices.
New South Wales: Median rent in Sydney has surged by over $150 per week in nearly 100 suburbs, with locations like North Manly and Miller Point witnessing annual growth rates exceeding 40%.
Queensland: The median unit rent in Brisbane has surged by almost 17%, while house rents are not far behind at $620 per week on average.
South Australia: More than 90 suburbs in Adelaide have recorded double-digit growth in weekly house rents, with Semaphore topping the list with a growth rate exceeding 28%.
Tasmania: Hobart's median advertised rent has surged by $50 per week, with regional Tasmania experiencing an increase of $100.
With rental values rising at an average rate of 9.1% annually over the past three years, renting in Australia has become increasingly expensive. Experts anticipate that the rental squeeze will persist throughout 2024, particularly as rising property prices pose additional challenges for tenants aspiring to become homeowners.
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