Yahoo Finance Warning for renters as prices continue to rise
Aussie tenants are now forking out an average of $580 per week on rent, or 11.5 per cent more compared to last year.
Aussie renters shouldn’t expect any relief in January, as we head into the busiest time of the year to move homes.
New research from PropTrack found national rental prices rose 1.8 per cent over the December quarter to $580 per week, on average.
The average renter is now paying 11.5 per cent compared to a year ago, or $60 more per week. Renters in the capital cities have been squeezed further, with rents up 13.2 per cent to $600 per week, on average.
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While this is still rapid growth, the small silver lining for renters is that it was the slowest pace of annual growth since early 2022.
PropTrack economist Angus Moore said it was an “extremely challenging” time for renters, with rents continuing to grow very quickly across most of the country thanks to strong demand and very low vacancy rates.
“Rents are growing at double-digit rates in many capitals, with Sydney, Melbourne and especially Perth renters facing very strong growth,” Moore said.
“As we head into what is typically the busiest time of year for rental markets in January, renters will, unfortunately, continue to face growing rents. There may be some relief on the horizon, with signs that growth is starting to ease.”
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Perth renters have experienced the fastest price growth over the past year, due to its incredibly low rental vacancy rate, behind only Adelaide. Median advertised rents are now up a staggering 66 per cent compared to before the pandemic, at $600 per week.
Units in Sydney, Melbourne and Brisbane have also seen particularly sharp increases in the past year, rising by 15 to 17 per cent.
The outlook is a bit better for regional renters, with rents stable over the past two quarters at an average of $500 per week.
It comes after an astonishing video showed just how dire Australia’s rental crisis has become, with lines and lines of hopeful tenants seen queuing to inspect a $370-per-week one-bedroom unit in Melbourne.
What is the median rent in Australia?
Here’s a snapshot of the current rental market and median weekly rents:
Sydney: Houses $750, Units $680
Melbourne: Houses $550, Units $520
Brisbane: Houses $620, Units $560
Adelaide: Houses $560, Units $460
Perth: Houses $620, Units $550
Hobart: Houses $550, Units $460
Darwin: Houses $660, Units $560
ACT: Houses $680, Units $560
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