People have had enough of the tough rental market and are choosing to buy homes with rents remaining high and stock low.
National rents remained unchanged over the June 2024 quarter at $600 per week, but this marks a 9.1 per cent increase, or $50 more, since the same time last year, according to REA Group's PropTrack Rental Report for June.
New rental listings on Realestate.com.au were 4.7 per cent lower in June compared to a year earlier, the lowest June level since 2010.
While total listings increased by more than 10 per cent in the June quarter, conditions remained tight with total stocks 4.4 per cent lower year-on-year.
The tough rental conditions appear to be encouraging cashed-up renters to buy their own homes, PropTrack economic research director Cameron Kusher said.
First-home buyer loans over the year to May jumped by 6.2 per cent while investor loans grew by 7.9 per cent.
"Increased lending activity to first-home buyers has seen renters with the means exiting the market to purchase, while increased lending to investors will also likely alleviate some rental pressures," Mr Kusher said.
Sydney fared the worst during the June quarter as renters faced the lowest supply of available properties for the month in more than a decade, with new rental listings declining by 2.8 per cent and total rentals down by 4.8 per cent.
Despite recording an increase in vacancy rates to 1.7 per cent, median advertised rents in the harbour city rose by $60 to top the nation at $740 a week.
It was not much better for NSW's regional renters with listings contracting by 19 per cent over the year, resulting in tougher competition between prospective renters.
Melbourne's rental supply remained tight in June as 16.8 per cent fewer new listings hit the market over the year, but total listings remained relatively stagnant.
The rental vacancy rate grew by 0.34 per cent over the quarter to reach a 12-month high of 1.5 per cent but that also signalled a rise in median rents to $575 a week, a $55 increase from a year prior.
While rentals in regional Victoria tightened and new and total listings declined, prices remained unchanged at $450 a week.
Brisbane renters faced a sunnier outlook as market conditions eased over the June quarter, bringing with it a growing rental supply and listings while competition eased.
Vacancy rates rose to 1.2 per cent over the quarter and median rents for both Brisbane and regional Queensland sat at $620 per week.
Adelaide and Perth experienced an increase in rental supplies and also increases to their asking rents as conditions eased across both markets.
The median rent for Adelaide in the June quarter rose to $570 while Perth had an advertised median rent of $650.
Rental asking prices in the nation's capital remained stagnant at $600 over the year to June despite tighter supply and growing demand.
While rental growth continues to slow, Mr Kusher anticipates it to continue outpacing the inflation rate as prices are unlikely to stabilise in the short and medium term.
"Weakening rental growth likely reflects the trade-offs that renters are making due to the heightened cost of rent and living," he said.
"Some of these trade-offs may include renting smaller properties, renting in less desirable locations where rental costs are cheaper or sharing rental accommodation with other tenants."
