Rental markets in Sydney, Melbourne and Brisbane ‘at breaking point’

Tenants are paying up to $350 more rent per week than this time last year, as our housing crisis reaches ‘breaking point’.

Tenants are paying up to $350 more rent per week than this time last year, as our housing crisis reaches breaking point. Picture: NCA NewsWire / Jeremy Piper

Tenants are paying up to $350 more rent per week than this time last year, as our housing crisis reaches breaking point.

According to national housing campaign Everybody’s Homes, some Sydneysiders are paying more than $350 extra rent than they were at this time in 2022.

In Brisbane, renters are forking out as much as $185 more than at the same time last year, while in Melbourne, Victorians are paying as much as $165 more per week to rent a roof over their head.

Everybody’s Homes has analysed the worst affected areas for tenants in Sydney, Brisbane and Melbourne, based on the SQM Research Weekly Rents Index for combined units and houses.

They found that in Sydney over the past year, asking rents have increased between about 28 per cent and almost 50 per cent. Meanwhile, vacancy rates are largely sitting below 2 per cent.

Hassinah Dadyar is a single mum whose rent is going up in May and fears she'll be unable to pay. Picture: Julian Andrews

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Over the same period, according to the study, asking rents have increased between about 11 per cent and 36 per cent in Melbourne while vacancy rates across the Victorian capital are sitting well below 2 per cent.

In Brisbane, asking rents have increased between about 18 per cent and 37 per cent, with vacancy rates across the city sitting at or below 1.1 per cent.

Federal and state governments have been roundly criticised for appearing to do very little about Australia’s rent crisis and Everybody’s Home spokesperson Maiy Azize said the consequences of government inaction will only worsen.

“More Australians are being priced out of having their basic need for a home,” she said.

“Many are being forced to skip meals, avoid the doctor, and take out payday loans just to pay the rent.

“There’s only so much people can afford to pay in rent. Right now, there’s no end to the housing crisis in sight. Politicians can’t keep leaving it to chance, hoping we’ve reached a tipping point. The sad reality is rents will keep climbing without government action.

“With interest rates rising again this week, renters could be faced with another increase and unlike landlords, they don’t get tax handouts to help them stay afloat.”

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“We also need the Federal Government to make a major investment in social housing. Australia needs to build at least 25,000 new social homes each year to end our shortfall.”

In Sydney, among the areas hardest hit include Canterbury Bankstown, Parramatta and Western Sydney where tenants are set to fork out more than $6,300 extra per year in rent at the current asking prices, according to the research from Everybody’s Homes.

In Melbourne, figures show tenants in Inner East Melbourne are set to fork out more than $8,500 extra per year in rent at the current asking price. Picture: NCA NewsWire / Andrew Henshaw

In Melbourne, figures show tenants in Inner East Melbourne are set to fork out more than $8,500 extra per year in rent at the current asking price, while Mornington Peninsula renters will be $4,200 worse off.

In the Queensland capital, the figures reveal tenants in Inner Brisbane are set to fork out more than $9,600 extra per year in rent at the current asking price, while Ipswich renters will be $4,400 worse off.

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Top 10 worst areas for renters in Sydney

Region: Asking rent Feb 23 - 12 month change in weekly rent - Vacancy rate Jan 23

1. Eastern Suburbs:$1,073/$351 or 48.6%/1.2%

2. Lower North Shore/ $1,097/$338 or 44.5%/1.7%

3. Sydney CBD: $1,027/$303 or 41.8%/2.9%

4. Canterbury Bankstown: $603/$167 or 38.3%/0.7%

5. Inner West: $714/$184 or 34.8%/1%

6. St George: $641/$163 or 34%/1.1%

7. Upper North Shore: $848/$209.55 or 32.8%/2%

8. Parramatta: $579.54/$136 or 30.7%/1.1%

9. Northern Beaches: $1,082/$251 or 30.2%/1.3%

9. Sutherland Shire: $744/$172.54 or 30.2%/1%

10. Western Sydney: $565.58/$123 or 27.8%/1.3%

Top 10 worst areas for renters in Melbourne

Region: Asking rent Feb 23 - 12 month change in weekly rent - Vacancy rate Jan 23

1. Inner East Melbourne: $622/$165 or 36.2%/1.3%

2. Melbourne City: $622/$157.51 or 33.9%/1.5%

3. Bayside: $629/$134.59 or 27.2%/1.3%

4. Eastern Melbourne: $559/$108 or 23.9%/0.9%

5. Melbourne North: $498/$76 or 18.1%/1.1%

Rental vacancies are at record lows. Picture: NCA NewsWire / Jeremy Piper

6. Mornington Peninsula: $539/$82 or 17.9%/0.9%

7. South West Melbourne: $496/$66 or 15.4%/1.5%

8. South East Melbourne: $492/$65 or 15.2%/0.9%

9. Western Melbourne: $448/$55 or 13.9%/1.6%

10: North West Melbourne: $453/$45 or 11.1%/1.3%

Top 10 worst areas for renters in Brisbane

1. Inner Brisbane: $685/$185 or 37%/1.1%

2. Brisbane CBD: $672/$156 or 30.3%/1.1%

3. West Brisbane: $588/$116 or 24.6%/0.8%

4. Southern Brisbane: $561/$110 or 24.4%/0.9%

5. East Brisbane: $703/$132 or 23.1%/1%

6. Ipswich: $477/$86 or 21.9%/1.1%

7. Beenleigh Corridor: $578/$96 or 20%/0.6%

8. Northern Brisbane: $578/$91 or 18.6%/0.6%

10. South East Brisbane: $656/$101.52 or 18.3%/1%

* Week ending 28 February 2023

* Source: Everybody’s Home/SQM Research

Originally published as Rental markets in Sydney, Melbourne and Brisbane ‘at breaking point’