‘Good news’ for Sydney renters but regional tenants suffer

Sydney renters have been given more positive news but the latest data shows it’s not the same story for tenants in some popular markets.

Sydney rents have remained frozen for the sixth consecutive month, with struggling tenants getting some reprieve from greater choice in the market.

And while rental conditions in the Harbour City show signs of improving, regional renters don’t have the same happy story due to listings dropping 17 per cent below the decade average.

REA Group’s quarterly rental report revealed Sydney’s rental prices are 4.3 per cent higher than they were at the start of 2024, despite the lack of rental growth in the second half of the year.

This was much slower growth than the sharp 16.7 per cent rise over 2023. A median rental in Sydney now costs $730 per week, according to PropTrack.

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Sydney renters are set to have some reprieve. Picture: Monique Harmer

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REA Group executive manager economics Angus Moore said rental conditions were starting to improve and become less competitive for Sydney tenants.

“We are starting to see some good news for Sydney renters,” he said.

The total number of available rentals had picked up over 2024, and is now 14 per cent higher than what it was at the end of 2023, he added.

Rental properties in Sydney were advertised online for an average of 21 days, compared to 19 days the year before, indicating demand and competition had decreased.

“That said, rental availability is still more limited than has been typical over the past decade or so,” Mr Moore said.

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Renters searching in 2023 conditions will likely find it easier now in 2025. Picture: Adam Yip

Although price growth had slowed, the huge hikes that occurred in 2023 meant that prices were still elevated.

“Rental affordability is still extremely challenging at the moment, so that sort of puts a cap on how much further rent can grow in a way,” he said.

“Compared to pre-pandemic, rent is a lot more expensive and affordability a lot worse, but the good news is it looks like things are starting to improve.”

For renters in regional NSW, conditions got tougher.

“The regional rental market has been very challenging for some time with pretty limited availability, and unlike Sydney that actually looks like it has gotten worse over the past 12 months,” Mr Moore said.

New listings dropped 2 per cent over the year, while total listings were 9 per cent lower than December 2023, 17 per cent below than the 10-year average.

“We are continuing to see strong demand to move to regional areas, a really big story we saw during the pandemic that looks like it has continued,” Mr Moore said.

Demand had grown with an increase of 20.5 per cent inquiries per listing on realestate.com.au.

Regional NSW prices had jumped up to $560 per week, up 7.7 per cent year-on-year.

Mr Moore said January and February were expected to see a natural increase in demand and competition, a seasonally busy time of year for new leases due to movement for work and university.

“Our expectation is that throughout this year, rents will continue to grow but not particularly quickly, certainly nothing like 2023.”

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Originally published as ‘Good news’ for Sydney renters but regional tenants suffer