Rents in Australia’s capital cities surged over the past year, as high demand for few houses pushed prices through the roof.
Melbourne had the steepest increase in the country, with the median rent for a house climbing a whopping 14.6% in the year to December.
However in terms of dollar figures, Sydney had the most expensive rents, rising 13.6% to $750 per week for a house. Melbourne averaged out $550 per week and Brisbane at $620 per week.
For apartments, it’s a steep increase too. In Sydney, a mean unit will cost you $680 per week, 17.2% more a year ago. Melbourne units increased 15.6% to $520 per week and Brisbane rose 16.7% to $560 per week.
It was a slightly better story in the regions, with average rents remaining steady since June. Although this is good news for those regional renters, prices still remain far higher than pre-pandemic levels.
Speaking to PEDESTRIAN.TV, PropTrak senior economist Angus Moore said the lack of homes available to rent was a major factor.
“There are just not a lot of available rentals at the moment and the vacancy rate is really low. So there’s a low of upward pressure on rents,” he said.
“There is a silver lining in that it’s not quite as steep as 2022, but it is still climbing extremely quick.”
He said the reason rents were climbing was “complicated” with a number of factors at play, including people staying in the rental market for longer.
“Of course house prices and rents have a relationship,” he said.
“Rents have risen but mortgage rates have risen even faster, so we’re not seeing as much buying as we were in 2021, when it peaked.”
He said that during the pandemic a lot of share houses split up and became occupied by just one or two people. That, combined with people staying renters for longer (instead of buying a home) and an increased population, meant there were far more renters competing for the same number of houses.
He said that with no serious government policy yet in play, 2024 looked to be much the same story with relief for renters a remaining a long way off.
Median rents for a house as of December 2023
- Sydney $750 pw, +13.6%
- Melbourne $550 pw, +14.6%
- Brisbane $620 pw, +7.8%
- Adelaide $560 pw, +12%
- Perth $620 pw, +12.7%
- Hobart $550 pw, no change
- Darwin $660 pw , +1.5%
- ACT $680 pw, -2.2%
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