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In the midst of some of the tightest rental markets the country has seen, new data shows that median rents have soared more than $600 per week in some suburbs.
In Sydney’s Rose Bay, for example, PropTrack reports that the current median weekly rent for a house now sits at $2,000, up from $1,375 this time last year. Annually, that equates to an additional $32,500. Neighbouring high-end market Vaucluse has seen a similar jump of $500 per week, taking the median rent to $3,000, an increase of $26,000 annually.
Units have seen similarly staggering rises in some of the country’s most sought-after markets.
Darling Point in Sydney’s east has seen rents increase $200 a week, to $1,050 for a median unit. It’s a significant rise, but probably felt even more keenly in Queensland’s Main Beach, where the additional $200 per week brings the average rent from $550 per week to $750.
While most markets are feeling the squeeze, it’s in the nation’s capitals where pressure has ramped up, with rental growth has eased somewhat across the regions.
Here are the markets where rents have increased by the greatest weekly amount:
Houses
|
Suburb |
GCCSA |
Current median weekly rent |
$ change in median rental price |
|
Rose Bay |
Greater Sydney |
$2,000 |
$625 |
|
Vaucluse |
Greater Sydney |
$3,000 |
$500 |
|
Clear Island Waters |
Rest of Qld |
$1,400 |
$400 |
|
Paradise Point |
Rest of Qld |
$1,250 |
$400 |
|
Surfers Paradise |
Rest of Qld |
$1,400 |
$360 |
|
Sunshine Beach |
Rest of Qld |
$1,200 |
$330 |
|
Pagewood |
Greater Sydney |
$1,190 |
$310 |
|
Miami |
Rest of Qld |
$1,100 |
$300 |
|
North Bondi |
Greater Sydney |
$1,800 |
$300 |
|
Queens Park |
Greater Sydney |
$1,650 |
$300 |
Units
|
Suburb |
GCCSA |
Current median weekly rent |
$ change in median rental price |
|
Haymarket |
Greater Sydney |
$900 |
$210 |
|
Main Beach |
Rest of Qld |
$750 |
$200 |
|
Darling Point |
Greater Sydney |
$1,050 |
$200 |
|
Zetland |
Greater Sydney |
$820 |
$170 |
|
Caringbah South |
Greater Sydney |
$965 |
$170 |
|
Millers Point |
Greater Sydney |
$850 |
$160 |
|
Rosebery |
Greater Sydney |
$750 |
$155 |
|
Chippendale |
Greater Sydney |
$700 |
$150 |
|
Melbourne |
Greater Melbourne |
$550 |
$150 |
|
Sydney |
Greater Sydney |
$800 |
$150 |
Certainly these suburbs are seeing the largest increases because their properties rent for some of the highest prices in the country. Arguably those renting in these areas are at the greatest liberty to pay more for accommodation, as high-income earners are more likely to have a larger tranche of disposable income to spend when needed. What these figures reveal, however, is the extent of the rental crisis as increases are being felt exponentially at every end of the market.
As the latest CoreLogic housing report noted, Australians across the board are paying the highest proportion of their income towards rent since June 2014.
Currently, a median income household will need to devote 30.8 per cent of their income to service a new lease.
At the lower household income — or those in the 25 percentile — that figure sits substantially higher, with 51.6 per cent of income going towards rent.
ANZ senior economist Felicity Emmett described the perfect storm that has seen rents balloon at every price bracket.
“Heightened economic uncertainty has seen a decline in sales volumes in the private market and an increase in those seeking rental accommodation. Paired with a decline in social housing, rental demand pressures are being felt in all income brackets,” Ms Emmett said.
CoreLogic’s head of research in Australia, Eliza Owen, expanded on that picture, adding that fewer people per household, coupled with a strong return in overseas migration had left the country with a problem that has no easy fix.
“As rents have risen sharply, the increase in the cash rate, and pressures in the construction sector have slowed the rate of dwelling completions. This has meant investor conditions are not ideal and has stemmed the flow of new rental properties to the market,” Ms Owen said.
“Through February and March, ABS lending data has shown signs of an increase in investment borrowing, but it will take some time for a supply response to ease pressures in the rental market,” she added.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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