Australians footing $3b bill for rent hikes with more pain on the way

Australians have paid $3bn in rental increases since July last year — with another almost $5bn in collective rent hikes expected in the next year alone.

Australians have paid $3bn in rental increases since July last year — with another almost $5bn in collective rent hikes expected in the next year alone.

Almost $2bn of that total figure will come from NSW households if rent increases continue at the rate anticipated by the Reserve Bank.

The average Australian rental household is expected to fork out $2261 in rent increases alone in the next year, research from the Parliamentary Library has shown.

The research predicted that by June 2024, NSW is expected to have the highest median rent of all Australian states — sitting at a steep $541 per week on average.

The predictions are based on a dire warning from outgoing RBA governor Phil Lowe that rents are expected to grow at about 10 per cent.

People waiting to view a rental property in Paddington. Picture: Liam Kidston

“We are expecting growth in rents, as measured in the CPI, to be close to 10 per cent,” Mr Lowes has previously told a parliamentary committee.

“It is very tough. Some people are experiencing bigger increases in rents than that, so it is really hurting some people.”

It’s Max Chandler-Mather vs. Albo when it comes to rent freezes.

The research has been commissioned by the Greens, who are pushing the Albanese government to implement rent freezes.

“If the Federal government acts right now and coordinates a national freeze on rent

increases, they could save the average renter thousands of dollars in just a year, which

could be life changing,” Greens housing spokesman Max Chandler Mather said.

“These aren’t just numbers, a two-year saving of $3688 per household is food on the table, a

desperately needed trip to the dentist or it’s the electricity bills for two years.

“Rents are now one of the key drivers of inflation, so freezing rents for two years could have

not only put close to $4000 in the pockets of renters but help control inflation at the same

time.

“At a time when people are counting every dollar, this would be a lifesaving cost of living.”

Eighty housing, legal and welfare organisations have also called on the federal government to co-ordinate national rent caps and strengthen rights for renters.

Originally published as Australians footing $3b bill for rent hikes with more pain on the way