Landlords put on notice over $8,884 move hurting everyday Aussies: 'Era is over'
Landlords have been put on notice over cashing in on extreme rent rises as the Australian rental market “well and truly” passes the peak of the recent rental boom. Aussie renters have been hit with higher costs to put a roof over their heads, forking out a staggering $8,884 more per year since the start of the pandemic.
However, data released Wednesday from CoreLogic found the pace of rental growth has slowed, with rents increasing 4.8 per cent over 2024, after surging 8.1 per cent in 2023. National rent values rose 0.4 per cent in the December quarter, the smallest quarterly change since 2018.
Better Renting executive director Joel Dignam told Yahoo Finance the data was “very welcome” and a “shift in the right direction” for renters. He said it was important to note that smaller rent increases were not the same as rent becoming more affordable.
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“The data showing less rent growth reflects the fact that already landlords aren’t increasing rents as much. When they go to list a property for rent, it maybe is only going up by a per cent or two, or they’re relisting at the same amount,” Dignam said.
“For landlords thinking ahead, it is worth realising that the era of those big rent increases is over. Increasingly, if you’re listing a new property if you’re too ambitious it is just going to sit on the market and people will be looking at other options.
“If you’re a landlord trying to push through a rent increase, I think you really do have to take a bit of a step back and be mindful that in theory [renters] might say, ‘That’s enough, I’m going to move somewhere else where I can be getting cheaper rent or a better property’.”
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Rent prices slow in capital cities
Across the capitals, the majority of cities saw a slowdown in rental growth over the year with the country’s biggest capitals leading the charge.
Sydney rental growth eased from 9.9 per cent over 2023 to 3 per cent in 2024, while Melbourne dropped from 11 per cent to just 4.1 per cent.
The only capitals to see increased momentum in rental growth were Hobart at 6 per cent and Canberra at 2.6 per cent, following falling rent values in 2023.
Sydney remains the most expensive capital with a median weekly rent of $773. Perth took out second spot at $695 per week, overtaking Canberra at $667 per week.