It’s a tough time for Aussie renters and the problem is set to get worse, according to new data from REA group.
Demand for rentals held strong over the quarter, particularly in capital cities where the situation is reaching breaking point, the PropTrack June Rental Report has found.
Nationally, new rental listings were slightly higher in June 2023 than a year ago. Even so, they were historically low, and 5.7 per cent below the June average for the past five years.
In the combined capital cities, total rental listings fell 8.8 per cent, year on year, in June 2023, 23 per cent lower than the June average over the past five years.
Limited supply has given landlords the opportunity to increase rents. Nationally, rents were up 11.8 per cent, year on year, to sit at $520 per week.
“The national rental market remains extremely tight. Rental vacancies and days on site have drifted marginally higher but both remain low on a historic basis,” PropTrack director of economic research Cameron Kusher said.
“At the same time, the volume of stock available for rent remains low and demand for rentals is broadly strong. As a result of these conditions, the cost of renting continues to rise.”
Rent prices to be pushed even higher
“Adding to the challenging rental market is the rapid rebound in the number of people arriving in Australia,” Kusher said.
“2022 saw the largest increase in population on record, driving more demand for rentals. Most people arriving in the country, at least initially, will require rental housing, creating more competition for available properties.”
Kusher said fewer people were leaving the capitals, while some returned post-pandemic, and most migrants settled in capital cities.
“The lack of new supply remains the biggest strain on the rental market, particularly in the larger capital cities,” he said.
“In the immediate term, attracting more investors into the market or utilising empty or short-term rental properties for longer-term rentals is the quickest way to address the rental deficiency.”
Aussies flocking out of the regions
While the capital cities may be a hotbed of competition, regionally, total rental listings were 20.5 per cent higher than a year ago.
In the capital cities, the number of enquiries per listing on realestate.com.au was unchanged over the year. But, regionally, the number of enquiries per listing dipped by a significant 35.3 per cent, year on year.