Rise in Australian rents in all capitals except Melbourne
Australian tenants have suffered the biggest rent increases in more than a decade.
Rents have risen 6.6% in the past year, according to data from research firm CoreLogic provided to news.com.au.
An annual increase of this magnitude has not been observed since January 2009, in the aftermath of the global financial crisis.
The national average cost of renting a house or apartment is now $ 476.
On average, renters are expected to shell out $ 29.50 more per week, or $ 1,534 per year (if rates stay the same), compared to 2020.
Darwin saw the biggest increases, with rents up 21.8%, or $ 98.17 per week.
This means that those who rent in the capital of the Northern Territory have to shell out $ 5,100 more than last year.
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And while the two largest capitals are generally associated with a high cost of living, the Covid-19 pandemic and a rush to regions are putting strong downward pressure on rents.
Melbourne comes at the back of the pack and is the only capital where rents have fallen over the past year.
Rents in the Victorian capital are down 1.4%, meaning renters are paying $ 6 less per week compared to 2020.
In Sydney, rents rose a low 3.2%, which was the smallest amount for a capital other than Melbourne.
At the same time, the demand for housing in regional areas has skyrocketed.
The average home in the regions now costs $ 441 per week, which is an increase of 11.3 percent – the largest annual increase on record for regional rents.
CoreLogic has attributed many changes to Covid-19, as lockdowns lower rents in Sydney and Melbourne while making regional areas more desirable.
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Canberra remains the most expensive city to rent at $ 620 per week, with Adelaide the most affordable at $ 430.
Sydney was second at $ 582 per week, followed by Darwin at $ 548.
Melbourne is now the second cheapest rental market, with typical rents of $ 444 per week.
Rents have also risen sharply in Brisbane, Adelaide, Canberra and Hobart, up almost 10% from last year.
Eliza Owen, head of research at CoreLogic Australia, said the rental markets in Sydney and Melbourne were the weakest due to the unique impacts Covid-19 has had on those cities.
“In Sydney and Melbourne … these cities, which have historically hosted the largest number of international migrants, have seen rental demand hardest hit by international border closures amid the pandemic,” she said. .
However, there are signs that the rental market is slowing down.
CoreLogic’s National Rent Index saw a 2.1% increase in the three months ending June 2021, down from the 3.2% increase in the March quarter.
“It is interesting to note that, as with house prices, rental prices are experiencing decelerating growth nationally and in each of the capitals,” Ms. Owen said.
“This may reflect affordability constraints, but there could also be higher levels of rental supply as investor activity in the market increases.”
She added: “While demand in these unit markets remains quite weak, there are signs that rents may stabilize at lower levels.”