Insane cost Australians are paying for rent revealed as prices continue to hike

Renters hoping for a Christmas or New Years miracle have had their hopes dashed after fresh data shone a light on the insane cost Australians are paying.

A shortage in rental properties will continue to hike rents up in the new year, with one city becoming the worst for renters.

The latest PropTrack Market Insight found the median national rent increased 1.8 per cent over the December quarter to $580 per week.

It means the average Aussie renter is now paying up to 11.5 per cent, or $60, more per week compared to a year ago.

Renters are still struggling with high prices. Picture: NCA NewsWire / Max Mason-Hubers

Despite growing at the slowest pace of annual growth since early 2022, rents in capital cities surged 13.2 per cent in 2023, PropTrack senior economist Angus Moore said.

“Rental markets are extremely challenging for renters, with rents continuing to grow very quickly across much of the country amid strong demand and very low vacancy rates.

“Rents are growing at double-digit rates in many capitals, with Sydney, Melbourne and especially Perth renters facing very strong growth.

Sydney remains the most expensive city for renters, with units in Sydney, Melbourne and Brisbane jumping between 15 per cent to 17 per cent in prices over the past year.

It now costs the average Sydneysider $200 more to rent a house ($750/week) than it would someone living in Melbourne ($500/week).

But it was Perth, with its incredibly low rental vacancy rate, that experienced the fastest rent growth over the past year.

Sydneysiders are paying higher rents. Picture: NCA NewsWire / Max Mason-Hubers

Median advertised rents hit $600 in the year to December, up 20 per cent on the previous year.

PropTrack estimated rent has now grown up to 66 per cent compared to pre-pandemic levels.

In contrast, rents across regional Australia experienced a more moderate growth and stayed flat across the December quarter.

“Median advertised rents have been stable for two consecutive quarters, sitting at $500 per week since June,” Mr Moore said.

But the analyst said while the upcoming January period, typically the busiest time of year for rentals, will see price increases there could be some hope to come.

“There may be some relief on the horizon, with signs that growth is starting to ease,” he said.

Prime Minister Anthony Albanese said there was “no easy solution” but the government was taking action to relieve some of the pressure on housing when asked on Tuesday.

“We have a comprehensive housing plan. We’ve worked very closely with state and territory governments. And it’s a multi faceted plan to plan about supply,” he said.

“There’s no easy solution. You need to build supply. And that’s why we’re investing in public housing ... That’s why we have the incentive that is there for private .. build to rent that was included in our budget of last May.

“That’s why we’ll continue to work with the private sector as well.”