There’s still no relief in sight for struggling tenants, with rents recording a two per cent rise over the past quarter, according to PropTrack.
Nationally, rents for all dwellings rose 11.8 per cent in the past 12 months.
Sydney (3.3 per cent) and Melbourne (4.3 per cent) units continue to see the sharpest increase in rents, as renters scramble to try and find affordable accommodation in Australia’s two largest cities.
Dwelling rents were also sharply higher in Perth (4 per cent) and the ACT (3.3 per cent), while Adelaide dwelling rental prices remained flat over the quarter, in a positive sign for the tenants.
Capital city renters are doing it toughest of all with rents increasing 5.8 per cent in the June quarter to $550 per week, up 17 per cent compared to a year earlier.
While growth in rents in regional Australia appear to be slowing, with rental prices remaining unchanged over the past three months.
PropTrack Economist, Angus Moore said conditions were tough, with limited options for tenants.
“Rental markets continue to be extremely challenging for renters, with rents surging across much of the country amid strong demand and very limited availability,” Mr Moore said.
“This is especially true in Sydney and Melbourne, where weekly rents have increased significantly after falling in these cities during 2020 and 2021.”
Mr Moore said Sydney and Melbourne units had recorded particularly sharp increases, up 19 per cent and 17.5 per cent over the past year.
“Some of this growth reflects catch up after unit rents fell during the pandemic, but not all,” he said.
“Median unit rents are now 19 per cent higher than pre-pandemic in Sydney and 10.6 per cent higher in Melbourne.”
Despite life being tough in some cities, not all areas are being equally impacted.
According to Mr Moore, there are signs rent growth may be slowing in some of the other capitals.
“Rents in Adelaide were flat in the June quarter. Rents in Brisbane grew 1.9 per cent; while still quick, it was the slowest pace of quarterly growth since mid-2021,” he said.
He said regional rental markets also look to be moderating.
“Rents were flat across regional areas in the June quarter; and while they are still 6.7 per cent higher than a year ago, it was the slowest pace of annual growth since early 2021,” he said.
“The good news for regional renters is rent growth looks to be moderating after three years of brisk growth.
“That slowing in rent growth is consistent with improving rental availability in regional markets.”
