Record Rent Rises Batter Nation’s Tenants

Australian tenants found no relief last quarter with the average rental price increasing at the fastest pace on record.

According to the PropTrack Market Insight Report, the nation’s median weekly advertised rents rose 4.3 per cent over the September quarter. It follows a 2.2 per cent rise in the June quarter.

The national weekly median rent is now $500 for houses and $450 for units.

Advertised rental rates increased by 10.3 per cent year-on-year, which was also the largest annual rise on record.

Capital city rents rose by 3.2 per cent quarter-on-quarter and were 7.8 per cent higher year-on-year, while regional rents were unchanged quarter-on-quarter and were 12.5 per cent higher year-on-year.

Rental prices in Sydney, Melbourne and Brisbane all experienced the fastest year-on-year growth on record for all homes.

House rents have increased at a faster pace over the past year (11.1 per cent) than unit rents (7.1 per cent).

The gap between national house and unit rents has remained at $50 over the quarter and is still at the widest differential on record.

Over the past year, rents for four-bedroom houses (12 per cent), five-plus bedroom houses (11.4 per cent) and one-bedroom units (11.1 per cent) have recorded the greatest increases.

Rental prices Sept quarter: houses

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National median weekly advertised rents rose by 4.3 per cent over the September 2022 quarter to be 10.3 per cent higher year-on-year. This marked the largest quarterly increase on record.

Rents were rising due to the ongoing low volume of stock available for rent and the strong demand for rental accommodation, which was affording landlords with scope to increase weekly rents, Proptrack said.

Rental prices Sept quarter: units

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“Rental pressures over the quarter were most prevalent for houses in regional WA and Adelaide and strongest for units in Sydney and Melbourne.

“Regional SA houses and units recorded the greatest softening of rents as demand for rentals outside of Adelaide eases.

“With the supply of rental stock remaining extremely tight and migration to Australia lifting, we anticipate rents to continue to rise over the coming quarters.

“Capital cities are expected to see the lion’s share of growth as demand and subsequent rental price growth softens in the regions.”