‘Extremely concerning’: Once affordable areas hit hardest by rent increases in Sydney

New data has revealed the surprising area one state’s renters are being hit hardest by price increases.

Sydney suburbs once considered to be more affordable than other parts of the city have been hit hardest by rental increases, “extremely concerning” new data has revealed.

The analysis of recent bond lodgements by Homelessness NSW found rents in Greater Sydney had risen by 9.1 per cent over the past year.

Sydney’s southwest, usually more affordable, was hit hardest with increase of up to 16.4 per cent in Liverpool, Fairfield, and Camden.

Homelessness NSW CEO Dominique Rowe said the findings were “extremely concerning”, with renters plunged into homelessness.

“NSW is entrenched in a severe housing crisis which is causing severe distress and harm across the state,” Mr Rowe said.

“Renters are being priced out of the private market and plunged into homelessness.

“It’s extremely concerning that some of the areas suffering the highest rent hikes are traditionally more affordable areas such as southwest Sydney.

A map of rental increases in NSW. Picture: Tenants Union NSW

“As people priced out of these areas are left with nowhere else to go, we will tragically see more sleeping in cars, tents and on the street.”

Sydney’s Outer West and Blue Mountains were the next worst hit by rental increases, with median rents rising 13.7 per cent to $580.

Sydney’s glitzy eastern suburbs, Sutherland Shire, Blacktown, and the regional area of Murray on the Victoria border were next.

The data comes as Homelessness NSW is calling on the state government to set targets for building enough social housing.

The advocacy group’s aim is for one in every 10 homes to be social housing; currently, they say, its only one in 20.

Mr Rowe said social housing not only providing desperate people with a home, but also “helps keep rents lower for everyone in the private market”.

“Recent investment in social housing in the NSW Budget is a welcome start but we need to build 5000 new social homes each year,” he said.

Highest rental increases by area. Picture: Tenants Union NSW

“The only thing standing in the way is political will.”

Rental increases have been felt across Australia’s major metropolitan and regional centres in recent years.

Data by big four bank NAB earlier this year found rents in Victoria had increased by 11 per cent since 2023.

In Queensland, the state government has introduced a raft of new laws to provide a “more balanced approach” to renting and market stability.

The laws including applying a 12-month limit on rent increases to the rental property instead of the tenancy and banning all forms of rent bidding.

Originally published as ‘Extremely concerning’: Once affordable areas hit hardest by rent increases in Sydney