‘So disheartening’: Photo highlights Sydney’s rental crisis

A photo of a swarm of people at a rental inspection for a Sydney apartment has sparked a heartbreaking conversation about the rental crisis.

A photo has emerged online of people crowding outside a Sydney apartment building for a rental inspection, highlighting the huge demand for a limited supply of properties available to rent in the city.

At least 20 people can be seen crowding around an agent outside the doors to the World Tower in the photo posted on Reddit.

The Meriton Suites World Tower is a residential skyscraper on Liverpool Street in the heart of Sydney’s CBD and is one of the city’s tallest residential buildings.

There are two rentals currently listed on realestate.com.au – a two bedroom, two bathroom on the 35th floor for $1180 a week and a one bedroom with study on the 45th floor for $720 a week.

news.com.au understands the inspection in the photo was for the latter and has contacted the agent for further comment.

A rental inspection at the World Tower in Sydney. Picture: Reddit

Australians expressed their sadness and frustration on the Reddit post, with many revealing how difficult it is at the moment to find an affordable home to rent in Sydney.

“There’s a feeling that non renters don’t know that is so disheartening,” one person wrote. “It’s when you drive up to an apartment/house – especially if you’re excited for it – and see a long queue of people snaking around the block.”

Another person wrote: “It’s like that in other suburbs in Sydney as well. I went to an open house in Ashfield on a weekday and there were like 20 couples who showed up.”

Others shared similar experiences outside Sydney.

“You started seeing the same people each Saturday, after a while, and doing the awkward nod of haha, here we are again,” one person said.

Another added: “And then you don’t see them, and hope they found a place, but also, hope that this time it’ll be your turn.”

“We just went through this. 80 people attended one inspection in Brisbane,” wrote someone else.

The number of renters per property listed on realestate.com.au has risen 28 per cent in a year across the capital cities. Picture: NCA NewsWire / David Swift

PropTrack’s latest rental report for the June quarter found the number of renters per property listed on realestate.com.au had risen 28 per cent year-on-year across capital cities, with Sydney and Melbourne experiencing the greatest increase.

The number of rental listings in Sydney fell 21 per cent in the last year. The largest declines in listings were recorded in Melbourne (-25.7 per cent) and Brisbane (-24 per cent).

Overall, the number of new listings coming on to the market was 13.8 per cent lower than the decade average in June.

The strong demand for rentals and limited supply is leading to significant increases in advertised rent prices, the report found.

Rental pressures are expected to continue because people will be less inclined to move out of rentals with the difficulty in securing another one, which will likely lead to the cost of renting increasing further.

PropTrack’s director of economic research and report author, Cameron Kusher, said rising prices for rentals in major cities will continue for some time, particularly as more activity returns to these areas post-Covid.

“With overseas and interstate migration returning with borders now reopened, it seems likely that rental conditions will tighten further over the coming months,” he said.

“This is likely to be most evident in Sydney and Melbourne, where rental demand and prices dropped throughout the pandemic but are now rebounding rapidly.”

Data also shows tenants are falling behind on their rental payments as the cost of living soars. Picture: NCA NewsWire / David Crosling

The report also found that the new financial year means higher land tax charges for investors and higher interest rates in many jurisdictions.

As a result of this, many landlords will likely be looking to pass on these rising costs to renters where they can, resulting in even higher rents.

Rental prices grew at the fastest pace in seven years in the year to June, increasing by seven per cent.

Rental prices in Sydney have grown by 6 per cent over the past year, after having fallen throughout the early part of the pandemic.

The median rental price for a house in Sydney is $620 a week and $500 for a unit.

Nationally, the median weekly rent for a house is $490 and $440 for units.

Data has also shown tenants are falling behind with rental payments as the cost of living soars.

The data released from a document signing tool used by property managers shows the number of rental arrears notices issued since January this year surged 45 per cent across NSW.

The report from FLK IT OVER found there had been a 220 per cent spike in the number of notices to increase rents, issued over the past six months.