Australian rents have almost doubled in the past year | Kanebridge News
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Australian rents have almost doubled in the past year

The lack of housing supply and higher interest rates continue to put pressure on a tight rental market

By KANEBRIDGE NEWS
Wed, Jul 26, 2023 11:03amGrey Clock 2 min

Rents have risen more than 90 percent across Australia and almost two thirds of unit suburbs recorded an annual increase of at least 10 percent, new data has shown.

In news that will be no surprise to many tenants, the CoreLogic Mapping the Market report revealed that rents in Adelaide and Perth increased by 100 percent for both houses and units, while in Brisbane, rents for units also doubled, with house rents close behind recording a 99.6 percent rise. The cost of renting in Darwin also rose considerably for those living in units, up 100 percent on the previous 12 months. Those renting houses in the Northern Territory’s capital fared slightly better, with their rents increasing on average by 71.4 percent. 

It was a predictable story in the eastern states where rents in the two biggest capitals have jumped over the past year. In Melbourne, the cost of renting went up 98.1 percent for houses and 99.1 percent for units. The news was not much better for renters in Sydney where rents shot up by 91.9 percent for houses.

Despite consistently strong growth in house values in recent years, Canberra recorded the lowest annual rent rise for houses at just 2.5 percent while the cost of renting a unit increased by 56.1 percent on average. CoreLogic data shows rents fell in 18 unit markets in Canberra over the past year.

Regional areas also experienced rental hikes over the past year, with the cost of renting housing doubling in Western Australia.

CoreLogic Economist Kaytlin Ezzy said the lack of housing supply and interest rate rises were the main drivers for the increases.

“Investors tend to shy away from the housing market during negative economic shocks. The sharp rise in interest rates has coincided with a -23.6 percent fall in new housing investment lending between April 2022 and May this year, and this includes a slight recovery in investment lending in recent months, which has lifted 10 percent from a low in February this year,” she said. 

“On the demand side, record levels of overseas migrants, many of whom rent in inner-city unit precincts, has bolstered rental demand this year, causing an imbalance between rental demand and supply. 

“For Perth in particular, there is a persistent shortage of rentals, with total rent listings now about – 50 percent lower than the historic five-year average.”



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