Sydney renters fall victim to rates rises with one suburb suffering $100 increase in 3 months

Some Aussie renters in one capital city have seen their rents surge by over $100 per week in the last three months, with claims rising interest rates are to blame.

A new property analysis claims Sydney basin landlords are passing on interest rate rises to their tenants, with rents surging between $20 and $100 per week over the last three months.

As the nation braces for another imminent interest rates rise today, rents in Sydney’s south west suburbs climbed 9.3 per cent over the last quarter.

The analysis of SQM rent and rental vacancy rates by national housing affordability campaigners Everybody’s Home calculated the weekly rent increases, yielding worrying results.

While south western Sydney bore the brunt of rent rises among the greater Sydney’s affordable housing stocks, more affluent suburbs also recorded massive increases.

Sydney’s Lower North Shore saw a 14.7 per cent quarterly rise, or $107 per week.

Kate Colvin from Everybody’s Home said renters – typically on low and modest incomes – were bearing the cost of the “national inflation challenge”.

“This is both unfair and unwise. We need to urgently expand social and affordable housing,” she said.

“It was very welcome to see the Commonwealth government make $575 million available to social and affordable housing at last week’s job summit. But with rents surging by around $50 per week in just three months, we know that a much greater effort is needed.

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Sydney renters are falling victim to rates rises according to an analysis by Everybody’s Home. Picture: Flavio Brancaleone

Ms Colvin said renters hit with rent hikes were potentially cutting back on food, petrol and other essentials.

“This is a social calamity and an economic disaster, with the double whammy of record low vacancies and skyrocketing rents making it impossible to find an alternative, more affordable home,” she said.

Sydney rent breakdown

(Community – vacancy rate – asking rent – quarterly increase in weekly rent)

• South Western Sydney – 0.7 per cent – $544.23 – $46 or 9.3 per cent

• Sutherland Shire – 1.1 per cent – $671.28 – $60 or 9.9 per cent

• Western Sydney – 1.2 per cent – $520.65 – $47 or 10 per cent

• Canterbury-Bankstown – 1.1 per cent – $498.74 – $23 or 4.9 per cent

• Liverpool – 1.3 per cent – $478.66 – $43 or 10.1 per cent

• Parramatta – 1.3 per cent – $522.24 – $41 or 8.5 per cent

• St George – 1.3 per cent – $573.96 – $50 or 9.6 per cent

• Inner West – 1.5 per cent – $606.24 – $36 or 6.4 per cent

• Northern Beaches – 2 per cent – $934.28 – $66 or 7.6 per cent

• Eastern Suburbs – 1.8 per cent – $836.27 – $52 or 6.7 per cent

• The Hills District – 2.2 per cent – $701.10 – $56 or 8.7 per cent

• Lower North Shore – 2.4 per cent – $859.95 – $107 or 14.3 per cent

• Upper North Shore – 2.2 per cent – $716.39 – $30 or 7.5 per cent

• Sydney CBD – 3.1 per cent – $860.81 – $98 or 12.9 per cent

Australia’s rental ‘red zones’ revealed

Data analysis released last month revealed Australia’s “red zones” where prices have surged ahead of wage increases.

The analysis came as part of the Everybody’s Home campaign which focuses on fixing the nation’s worsening housing crisis.

The research references rental data over three years from investment and research data company SQM and compares it with the wage growth of workers in retail and healthcare, with social assistance and rental increases also factored in.

Employees in these occupations saw average wages increase just 2.3 per cent annually over the three years, while some areas saw rent prices jump by more than 18 per cent over the same period.

One of the hardest hit areas was Tasmania’s west coast, which saw an 18.7 per cent increase in rental prices over three years, with the median weekly rent now sitting at $394.39.

Central Hobart experienced a 5.1 per cent three-year annualised change, bringing the median rent to $543.81 a week.

Perth saw a change of 4.8 per cent over the same period, with the median weekly rent at $523.70.

In NSW, the south coast and the Central Tablelands experienced the biggest changes, with 13.4 per cent and 12.8 per cent increases over three years, bringing rent prices up to $599.91 and $462.68 respectively.

Sydney’s eastern suburbs experienced the least significant change, rising just 2.4 per cent to $791.85.

The Woden Valley in the ACT saw an 11 per cent annualised change over three years, bringing the weekly rent to $697.38, while the southern region of the capital saw a 3 per cent change to $690.84.

Queensland’s western region saw the biggest spike in rent prices, increasing 15.8 per cent to a median of $270.16, with northern parts of the Gold Coast coming in a close second at 15.1 per cent to $835.50.

The Brisbane CBD saw the lowest rise of 3.6 per cent to $556.60.

Southwestern Victoria was hit with an 11.1 per cent increase over the three-year period, bringing the median weekly rent to $473.22, while eastern Melbourne sits at $501.41 after a 3.2 per cent increase.

South Australia’s southern regions experienced a 12.1 per cent spike in rental prices, with a median of $395.90 a week.

Yorke and lower north SA experienced the lowest spike, though the increase was still quite steep at 8.3 per cent leading to a price of $321.88

The Northern Territory also recorded lower increases, with a 9 per cent jump over three years leading to a median weekly rent of $544.23.

Southern parts of the Territory were the least affected – $522.02 the median weekly rent after a 3.8 per cent increase.