The number of properties listed for under $400 per week has halved in the last year, new data from PropTrack shows.
The report, which analysed data from listings on realestate.com, found the rental crisis had worsened in the past 12 months. In 2022, it said, 30.2% of all rental listings were under $400 a week. That number has now dropped to 16.2%.
The proportion of rental properties available for under $400 per week is at its lowest level on record for all Australian capital cities except Hobart and Darwin.
In April only 11.9% of capital city rental listings were under $400 per week, and in regional areas, 26.6% of rentals were under the same price point.
Three years ago, in March 2020, 42% of houses were listed for under $400 a week, PropTrack senior economist Eleanor Creagh said.
“We’ve got a persistent shortage of rentals in the private rental market and that is giving landlords the scope to continue to lift rents,” Creagh said. “So we’re seeing that share of affordable rental properties declining.”
Units have had the sharpest decline in affordability, with the percentage available for under $400 per week falling from 35.6% to 19.8% in the 12 months to April. Just 12.6% of available houses were listed for $400 or less per week.
Creagh said surging rents had already outpaced the increase to commonwealth rent assistance. The maximum rate of commonwealth rent assistance will increase by 15% from 20 September, according to measures outlined in this month’s budget.
“Conditions remain very, very challenging, particularly for low-income Australians,” Creagh said. “Low-income households looking for a rental will find it very tough to avoid spending a large share of their income on rent.
“But with advertised rents continuing to climb and the share of affordable rental listings falling, any households looking for a rental at the moment will find it tough to avoid spending more of their income on rent.”
The market is expected to continue to tighten, with the current median national rent sitting at $530 for houses and $485 for units.
Creagh said there was little relief in sight for renters.
“We know strong migration, low vacancy rates and limited new supply probably means that tough conditions for renters are going to continue,” Creagh said.
“The only sustainable solution to the rental crisis is an increase in the supply of available rentals. That takes time – and there isn’t anything on the immediate horizon to address the shortage of rental properties.”
