Aussies hit hard by biggest rent increases since 2015

The number of properties available to rent across Australia is at the lowest level since 2013, with warnings there is no relief in sight for renters.

Aussies renters are in for a “tough” time with no relief in sight as a new report revealed that rents had soared by 4.7 per cent in the 12 months to March 2022.

This was the strongest annual rate of rental growth recorded since before 2015, according to the PropTrack report, with a shortage of available properties also causing headaches for renters.

It revealed that the total number of properties available for rent in March 2022 was at the lowest rate since August 2003, falling 4 per cent last month to sit 24 per cent lower year-on-year.

Darwin recorded the biggest jump in rental prices at a whopping 17.8 per cent, regional Tasmania experienced a rise of 15.2 per cent, while regional New South Wales climbed 12.5 per cent.

Darwin and Tasmania experienced the biggest jump in rents. Picture: NCA NewsWire / David Swift

Cameron Kusher, PropTrack director of economic research, said the strong demand for rentals experienced in 2021 has continued over the first quarter of this year.

“Demand remains near record high levels nationally, sitting at a historic peak throughout the combined capital cities in March 2022,” he explained.

“The volume of properties listed for rent at a national level has continued to reduce over recent months, exacerbating shortages of stock and pushing the cost of renting higher.

“Renting remains a tough proposition for many people across the country, with the strong demand and limited supply meaning properties are renting quickly and rental rates are rising. It looks unlikely that there is any significant relief on its way.”

Rentals are being snapped up in record time too – taken off the market just 19 days after being listed compared to 23 days the same time last year.

But there was good news for some regional areas with signs rental pressures may be easing, particularly in areas such as the Sunshine Coast in Queensland, Geelong in Melbourne, and Southern Highlands and Shoalhaven in NSW, Mr Kusher said.

“Other regional areas may see similar trends emerge as those who moved during lockdowns either decide to stay and potentially look to purchase rather than rent, while others may now look to relocate back to the major cities given that they have reopened and lockdowns have ended,” he noted.

there could be further rent increases in the coming months. Picture: NCA NewsWire / Gaye Gerard

However, he warned that with international borders now open and migration picking up, rental shortages will get even worse over the coming months, which will lead to further increases in rental prices.

“This is expected to be most prevalent in Sydney and Melbourne, the two largest rental markets in the nation and the two markets that have, until recently, been experiencing

falls in rental rates,” he said.

“While the increase in investor purchasing that has been occurring should add to supply in the

market, it will take time for this additional purchase activity to alleviate the current supply

pressures.”

Have you experienced trouble renting? Continue the conversation | [e-mail]