Current Outlook on Australia's Rental Market

Posted By David Brown

As rental prices across the country continue to soar, the Australian rental market is experiencing its longest period of continuous rental price growth on record, according to a recent report from real estate website Domain. The report reveals that renters are facing an alarming escalation in the cost of keeping a roof over their heads, particularly for those living in Sydney and Melbourne, where unit rentals have broken into the $600 territory for the first time. The report highlights the urgent need for action to address the rental crisis across the country, as renters struggle to secure affordable accommodation amidst record-high rental prices.

A recent report from the real estate website Domain has shed light on the growing concern around the cost of rental accommodation, particularly for those looking to secure a place to call home. The report highlights that the country is currently experiencing its longest period of continuous rental price growth on record, with house rents rising for the eighth consecutive quarter and unit rents for the seventh.

This trend has led to record rental prices across the nation, with house rents reaching an all-time high in every capital city, and unit rents at a record high in all capital cities except Canberra and Darwin. "For the first time since 2009, all capital cities have record house rents, highlighting the rental crisis the country is currently going through," explains Domain's Chief of Research and Economics, Nicola Powell.

According to Domain's data, house rents have surged by $135 a week over the March quarter, while unit rents rose by $140 across the combined capital cities since the pandemic low. The report warns that there appears to be no immediate relief in sight for renters, with units seeing a solid acceleration in rental growth, particularly in Sydney and Melbourne, where unit rentals have broken into the $600 territory for the first time.

While the report offers some glimmer of hope, citing a marginally higher vacancy rate across the combined capitals, up from last month's record low of 0.8%, CoreLogic's data shows Greater Melbourne's rental vacancy rate has fallen to just 0.7% for March. Overall, the report paints a bleak picture for those looking to secure affordable rental accommodation, highlighting the urgent need for action to address the rental crisis across the country.

In conclusion, the current state of the Australian rental market is alarming, with renters facing unprecedented increases in rental prices across the country. Despite a marginal increase in the vacancy rate, there appears to be no immediate relief in sight for renters, with unit rentals in Sydney and Melbourne breaking into record territory. It is imperative that policymakers and stakeholders take action to address the rental crisis and provide affordable accommodation options for those in need. Otherwise, the situation is likely to worsen, and more renters will be forced to struggle with the ever-increasing cost of keeping a roof over their heads.