Good news, at last, for desperate renters

Struggling renters have finally received some welcome news across much of Australia when it comes to finding or keeping a place to live.

Rental vacancies are up across much of the country. Picture: NCA NewsWire / Jeremy Piper

Struggling renters have received some welcome news as vacancies rise across much of the nation.

According to new data from the Real Estate Institute of Australia, more homes have become available to rent in Sydney, Brisbane, Perth, Canberra, Darwin and Hobart over the past three months.

However vacancy rates in Melbourne continue to slip, while the rental situation in Adelaide is the worst in Australia.

More homes are available to rent in Sydney but Melbourne’s vacancy rates continue to drop. Picture: NCA NewsWire / Andrew Henshaw

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REIA Deputy President, Leanne Pilkington said Darwin returned to a 3 per cent vacancy rate over the quarter, the only city in Australia to attain this benchmark, with an increase of 0.9 percentage points.

“Vacancy rates in Canberra increased to 2.0 per cent, Hobart to 1.8 per cent, Sydney to 1.5 per cent, Brisbane to 1.0 per cent and Perth to 0.8 per cent. Adelaide recorded the lowest vacancy rate in Australia at 0.6 per cent. Bucking the trend was Melbourne, with vacancy rates decreasing to 2.1 per cent.

“The weighted average median rent for 3-bedroom houses in the eight capital cities increased to $553 per week, a quarterly increase of 3.2 per cent but an increase of 9.9 per cent in the past year.”

Despite the improvement in vacancy rates, Ms Pilkington said rents continue to rise due to high demand, hot competition and lack of supply.

“The weighted average median rent for 2-bedroom other dwellings increased to $563 per week, a quarterly increase of 3.6 per cent and an annual increase of 18.7 per cent,” she said.

“The median rent increased in Sydney, Melbourne, Brisbane, Adelaide and Perth but decreased in Canberra, Hobart and Darwin.

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“The median rent for 3-bedroom houses also increased in Sydney, Melbourne, Brisbane, Perth and Darwin, remained stable in Adelaide, but decreased in Canberra and Hobart. Perth had the highest quarterly increase of 6.8 per cent.”

Amid fervent political debate over the possible of introduction of further rent controls, such as a price rise freeze and discussion over the impact of record immigration on the rental market, the regions are also experiencing strong rental price rises.

“In terms of rents, strong rental price growth was experienced in Newcastle with 2-bedroom homes up 8 per cent while in Wollongong 2-bedroom house rents were up 10 per cent,” Ms Pilkington said.

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“Alice Springs rents increased 5.5 per cent for 3-bedroom houses, Townsville 2-bedroom houses 2.6 per cent, and South Australian region capitals of Mt Gambier increasing a significant 51 per cent and Port Lincoln 21.2 per cent for 3-bedroom houses. Broome rents for a three bedroom home increased 28.2 per cent in the past year,” she said.

Ms. Pilkington said it was crucial for the major political parties to get housing policy settings right with continued strong growth across the housing market.

“National Cabinet has rejected rent freezes and controls; inflation had returned to the RBA’s target band with the cash rate on hold; and the Housing Australia Future Fund is set to pass Parliament.

“A return to a more moderate economic and political outlook will ease pressures on our housing system, which we hope to see bear out in future quarters.”

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Originally published as Good news, at last, for desperate renters