Bailey Perceval has been looking for a house in Melbourne’s inner north for six months. The 24-year-old has a budget of $600 a month making most rentals completely unaffordable.
“I’ve seen the median monthly rental price in Melbourne increase very quickly. So much so that most of my friends can no longer afford to live in metropolitan Melbourne,” Perceval says.
There is no way Perceval could afford even a single-bedroom unit for that price, so like everyone else with that budget, it will likely be a share house. But the market is tight and finding the right place with good people can be difficult.
“I am seeking accommodation in the northern suburbs, and what I’ve noticed is that unless you’re willing to pay [at least] $800 a month, you’re not going to find somewhere sustainable,” Perceval said.
Australia is in the midst of a national housing crisis, and PropTrack director of economic research, Cameron Kusher, says rents have increased 9% in the past 12 months.
“There are a lot less properties on the market, and a lot more people looking,” Kusher says.
The median cost for an average dwelling nationally is now $508 a week, so let’s take a look at what that can get you.
Sydney
After Canberra, Sydney is Australia’s most expensive city in which to rent, according to CoreLogic, with an average dwelling costing $621 per week.
“In Sydney, the only areas for under $500 are the outer south-west and the Blue Mountains,” Kusher says.
Want to live in the city? Get ready to share. In the Rocks, you can rent a single bedroom in a 10-bedroom share house for $480 per week.
Within walking distance of the CBD, Sydney renters are hard-pressed to find a two-bedroom apartment for under $500.
One two-bedroom apartment in Darlinghurst is on the market for $485 – a bargain, until you consider the fact it is only equipped with a microwave, no oven.
“Cosy two-bedroom apartment in excellent location moments’ walk to the buzz of Oxford Street shops, transport and nightlife,” the listing says.
Melbourne
Melbourne is Australia’s second cheapest capital to live in, right behind Adelaide. An average dwelling cost renters $468 per week on average.
“But you’re probably still looking at areas away from the city centre,” Kusher says. “If we look at Melbourne’s inner suburbs, you could potentially get a one- or two-bedroom apartment, but the median rent is $660 a week. You have to go out to get a house for under $500.”
For $500, it is not impossible to find a house within walking distance of the CBD – as long as you’re happy to skimp on quality.
Right now for $475 you can get an old, rundown cottage on Canning Street in Carlton North. There are cracks on the walls and the carpet is stained.
For three bedrooms you have to go out north to Coburg or easterly to Maribyrnong before $500 will land you a house. Even then, the listings are scarce and the renter would have to be prepared to walk more than 15 minutes to a tram line.
Perth
Over in Perth, the average dwelling cost renters $496 per week. For $480 per week you can get a two-bedroom apartment in the heart of the CBD. The kitchen will come with a fridge and oven and the building has a pool.
Just a ten-minute drive out of the CBD renters can get a three-bedroom villa for $450 per week, which comes with a single garage, split system air conditioner and extra storage space.
In Fremantle, a three-bedroom house five minutes’ drive from the beach and 28 minutes to Perth’s CBD with a garage and patio will cost renters $470 per week.
Launceston
Launceston, in the north of Tasmania, is also experiencing a shortage of rental properties, with an average price of $450 per week.
For $430 you can get a small three-bedroom property in the CBD, which comes with a courtyard out the back. In the trendy suburb of East Launceston, $500 will get a two-bedroom house, with a backyard.
A ten-minute drive out of town, a three-bedroom house with a spa, heating and storage costs $480.
Northern rivers
Up in the northern rivers, the housing crisis is acute. There are currently no two-bedroom homes listed in Byron Bay for under $500.
Ballina has two listed, both units, for $400 and $480 respectively. East Lismore, which was recently flooded, has 10 properties available to rent for under $500.
Byron Shire is about to implement a holiday letting cap on accommodation to help free up around 1,500 dwellings for longer-term rentals.
The cap will reduce the number of days that non-hosted short-term rental accommodation in parts of the Byron Shire can be let, from 180 days to 90 days.
Kusher says the crisis in the Northern Rivers has been driven not just by Airbnb and Stayz, but by city dwellers relocating or purchasing second homes that then stay off the market.
“You’ve had a huge amount of people from Sydney move to those markets,” Kusher says.
“A lot of people have bought second homes and some people are so well off they don’t have to rent the properties when they’re not there. That thins out supply.
“In Byron Bay, the locals don’t like a lot of new development so there’s not any new supply.”
Gold Coast
Heading up to the Gold Coast, there are only a handful of two-bedroom properties listed for under $500.
If you want to live close to the CBD, $500 will get you a two-bedroom unit in a duplex on the river and a 13-minute drive away from the beach.
For $470 you can rent a standalone three-bedroom property with a large yard in Nerang – a 20-minute drive to the CBD.
Kusher says the rental crisis is being driven by several factors: investors exiting the market en masse by moving their properties to Airbnb and Stayz because the returns are better, and a trickle of immigrants starting to come into the country.
A lot of regional Australia may be spared more rent increases, as people move back to the cities post-lockdown, he says.
“If anything, we’ll probably see rental growth accelerate in cities, particularly in the inner ring,” he says.
“You’ll see it slow in the regional markets. The impetus to move is not what it was.”
