Australia’s long-suffering renters are paying more than ever before to put a roof over their heads.
Rental asking prices started to rise again in the first quarter as the usually busy transition period at the start of the year coincided with an already overheated market.
According to real estate platform Domain, the average cost of renting a home in the combined state capitals hit a new record of $630 per week, with the first three months of 2024 seeing the biggest quarterly gain in 17 years.
Advertised house rents rose five percent in the quarter, with units also rising a solid 3.3 percent to a new record average asking price of $620.
An acute shortage of available properties continues to drive up rental prices, with one estate agency posting its sharpest quarterly profit in 17 years
The price increases have been caused by a record influx of migrants and the resulting shortage of available housing.
Coupled with this, the rise in interest rates has caused some investment property owners to sell, taking these homes off the market.
Head of research and economics Nicola Powell said the price increases were a predictable result of a mismatch between supply and demand.
“This imbalance has consequently led to a renewed acceleration of rental price growth,” she said.
The biggest quarterly changes were recorded in Adelaide, where asking house rents rose by 5.4 per cent, followed by Perth (4.8 per cent), Melbourne (3.6 per cent), Brisbane (3.3 per cent) and Sydney (2 .7 percent).
Australia’s long-suffering renters can’t get any relief (Photo: People queuing for a Bondi rental)
Vacancy rates also fell in every major city except Hobart, with Sydney, Melbourne and Perth at record lows.
Still, Dr Powell was confident the rental market would find a turning point in 2024 if population growth slowed.
“We are seeing a reduction in the number of potential tenants per rental property, which suggests that some pressure has been lifted,” she said.