Renters locked out of the market as rents surge $300 a week in some Sydney suburbs
Sydney renters are being forced to rethink their living arrangements after a year of extraordinary growth and mounting demand makes finding a home near impossible.
Sydney renters forked out as much as $300 more each week in rent this year as a lack of housing drove weekly medians well over $1,000 and priced many out of the market.
PropTrack data shows 2022 was a year of stiff competition between renters who faced rent increases of 30-40 per cent in the suburbs where the rental crisis hit hardest.
Weekly rents soared by the hundreds in the 12 months to October, with renters north and east of the harbour and on the city’s fringe forking out the most.
Home purchasers choosing to rent rather than buy as well as the return of treechangers and migrants meant there were more people looking for a home at the same time the number of available rentals dropped.
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The number of renters per listing more than doubled in several suburbs, with Hillsdale counting 107 renters for every house advertised.
The northern beaches suburb of Elanora Heights topped the list of highest rental increases, with houses costing 42 per cent more to rent than they did 12 months prior.
This represented a $328 a week increase in rent to a new weekly median of $1,100.
Turramurra in the upper north shore came second following a 38 per cent increase in house rents, up $350 a week, to a new median of $1,250.
Rents in Manly Vale shot up 33 per cent, or $303 a week, to a new median of $1,200.
Weekly house rents in Matraville, Chifley, Kensington, Caringbah South and Wahroonga all soared above $1,000 following increases of 22-31 per cent.
PropTrack economist Paul Ryan said not only were Sydneysiders feeling locked out of the sales market, they were starting to feel locked out of the rental market too.
“There is more housing demand now than there was per person during the pandemic and that is putting a lot of pressure on existing housing stock,” he said.
The Rental Specialists principal Jo Natoli said the lack of available housing options had left many renters feeling exasperated.
“Tenants are competing for property. They feel like they need to offer more,” she said.
“There are some landlords that will take the money over anything else, and we are required to put those offers to the owner regardless of who they have come from.”
Suburbs with greatest rental growth 2022 – Houses
Suburb/ Median weekly rent/ Yearly rental growth/ Dollar increase
Elanora Heights; $1,100; 42.4 per cent; $328
Turramurra; $1,250; 38.9 per cent; $350
Manly Vale; $1,200; 33.7 per cent; $303
Matraville; $1,250; 31.6 per cent; $300
Chifley; $1,100; 25.7 per cent; $225
North Strathfield; $800; 25.0 per cent; $160
Kensington; $1,125; 25 per cent; $225
Caringbah South; $1,100; 22.9 per cent; $205
Lake Munmorah; $520; 22.4 per cent; $95
Wahroonga; $1,100; 22.2 per cent; $200
Source: PropTrack.
Suburbs with greatest rental growth 2022 – Units
Suburb/ Median weekly rent/ Yearly rental growth/ Dollar increase
Sylvania; $615; 23 per cent; $115
Haberfield; $470; 17.5 per cent; $70
Cremorne Point; $698; 17.2 per cent; $103
Millers Point; $750; 17.2 per cent; $110
Zetland; $700; 16.7 per cent; $100
Matraville; $580; 16 per cent; $80
Ultimo; $580; 16 per cent; $80
Centennial Park; $550; 15.8 per cent; $75
Burwood Heights; $520; 15.6 per cent; $70
Haymarket; $750; 15.4 per cent; $100
Source: PropTrack.
This was affecting renters who had less money to spend, with one western Sydney mum she met forced to separate from her kids and “couch surf” after unsuccessfully searching for six months.
“There’s plenty of stories like that – especially in the western suburbs,” she said.
Ayre Real Estate director Craig Donohue said his agency had received higher offers from renters in the eastern suburbs and city fringe who were in a position to buy but had decided to rent due to rate hikes.
“We’ve had examples where we have put a property on the market for $1,000 and it has leased for $1,200 a week,” he said.
He said it was common to have 10 to 15 groups of people at open inspections for two or three bedroom properties, with many leased after one or two viewings.
InvestorKit head of research Arjun Paliwal said investor activity hadn’t increased despite the strong rental growth because of uncertainty around how interest rate hikes would affect borrowing power.
He said he expected rents to rise 8-11 per cent in 2023.
Most in demand suburbs for rent – Houses
Suburb/ Houses listed for rent/ Number of renters looking/ Renters per listing (RPL)/ YoY growth (RPL)
Rosehill; 39; 1,788; 46; 133.37 per cent
Hillsdale; 13; 1,385; 107; 122.29 per cent
Luddenham; 20; 1,890; 95; 95.05 per cent
Carramar; 36; 1,436; 40; 83.63 per cent
Roseville Chase; 19; 1,284; 68; 82.07 per cent
Silverwater; 30; 1,593; 53; 81.08 per cent
Horsley Park; 11; 524; 48; 79.76 per cent
Zetland; 48; 2,992; 62; 77.50 per cent
Kensington; 88; 5,018; 57; 76.41 per cent
Lidcombe; 228; 6,173; 27; 76.30 per cent
Source: PropTrack.
Most in demand suburbs to rent – Units
Suburb/ Units listed for rent/ Number of renters looking/ Renters per listing (RPL)/ YoY growth (RPL)
Miller; 17; 194; 11; 172.89 per cent
Bexley North; 34; 1,308; 38; 146.34 per cent
Mays Hill; 164; 3,709; 23; 124.13 per cent
Pemulwuy; 58; 2,182; 38; 120.22 per cent
South Wentworthville; 109; 3,694; 34; 117.74 per cent
Kings Park; 14; 696; 50; 116.78 per cent
Berala; 251; 3,165; 13; 111.12 per cent
Dundas Valley; 45; 2,250; 50; 110.04 per cent
Banksia; 36; 1,280; 36; 104.79 per cent
Kingsford; 833; 14,964; 18; 101.23 per cent
Source: PropTrack.
Most expensive suburbs to rent – Houses
Suburb/ Median weekly rent
Vaucluse: $2,995
Cremorne Point: $2,500
Bellevue Hill: $2,325
Tamarama: $2,300
Longueville: $2,275
Dover Heights: $2,100
Double Bay: $2,000
Balgowlah Heights: $1,800
Mosman: $1,800
Greenhills Beach: $1,775
Source: PropTrack.
Most expensive suburbs to rent – Units
Suburb/ Median weekly rent
Point Piper: $1,100
Tamarama: $950
The Rocks: $950
Caringbah South: $895
Darling Point: $895
Curl Curl: $888
Cabarita: $875
Milsons Point: $790
Double Bay: $775
Manly: $775
Source: PropTrack.
Single Sydney renter Min Petkovic accepted a friend’s offer to rent out part of her house after feeling priced out of Cremorne, where she was looking for a one-bedroom apartment.
She said it would have cost her at least $400 a week to rent a “shoebox” that had been minimally maintained over the past 30 years, while a renovated apartment cost over $500 – a large expense for a single person.
Had she moved further from work she would have lost any savings from cheaper rent on train tickets or petrol and tolls.
She said it saddened her to see 20 tenants lined up at open inspections.
“Some places I went to look at had so many people lined up that I didn’t even bother going in,” she said.
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