Australia’s rental crisis continues to worsen, with new research revealing 20 regions where prices will continue to climb to $5200.
Vacancy in the country is at its lowest level since April 2006, and rents have risen as a result.
Rents in capital cities rose 11 percent in the 12 months to March, and regional areas grew even higher at 13.1 percent year-on-year.
This led buyers’ agency InvestorKit to survey 300 areas across the country to determine where renters can expect the most pain.
Their research found that rents in 20 regions will continue to rise in “clear signals” by $2,600 to $5,200 over the next 12 to 24 months.
Camera IconRent continues to rise in 20 regions across Australia. Credit: istock
These areas include major capital cities such as Brisbane, Adelaide, Perth, Hobart, and Canberra.
Vacancy in Greater Brisbane has fallen over the past five years and currently stands at 0.8 percent.
This has subsequently resulted in Brisbane’s average rent rising by 11.9 percent over the past year while the supply of new homes remains low.
Vacancy rates in Greater Adelaide and Perth are at 0.3 and 0.5 percent, respectively, with rents rising 11.3 and 12.5 percent in the past year.
Vacancy in Hobart is the lowest of all Australian capitals at just 0.2 percent.
This has led to a 9.9 percent increase in rent over the past year and a massive 56.3 percent increase over the past decade.
Camera IconHobart’s vacancy rate is the lowest of any Australian capital. Sam Rosewarne Credit: News Corp Australia
The 0.5 percent vacancy rate in Canberra has resulted in rents rising 12.1 percent over the past year.
While the report found that Sydney and Melbourne’s sub-regions had strong rental conditions, overall, these cities weren’t as bad as other markets in Australia.
The other 15 areas where rent princes will rise are:
Tasmania – Devonport and Burnie-Ulverstone;
Queensland – Nerang, Bundaberg, Maryborough, Buderim, Toowoomba;
ACT/NSW – Queanbeyan, Lake Macquarie East, Kiama-Shellharbour, Wagga Wagga;
South Australia – Barossa and the Yorke Peninsula;
Victoria Warrnambool and Shepparton.
Camera IconThe 20 areas across Australia where rents will continue to rise. InvestorKit Credit: Included
Head of Research at InvestorKit, Arjun Paliwal, said rising rents in these areas indicate low vacancy rates.
“A rental crisis is often defined by vacancy rates of 1 percent or lower, so it’s worrying to see this getting worse,” he said.
We are currently at 0.7 percent – 41 percent lower than 12 months ago when we were at 1.2 percent.
“Most of the 20 regions chosen in our report have vacancy rates below the national average, and the majority are below 0.3 percent.”
Mr. Paliwal said many factors are at the root of Australia’s current rental crisis.
“These record-low vacancy rates are due to increasing demand and limited supply, driven by factors such as increased demand for housing, particularly for detached houses, due to the trend of working from home and the desire for a better lifestyle,” he said. He.
“The recent housing boom and prices are forcing people to stay longer in the rental market; more Generation Ys are moving out, strong population growth in regional areas and real estate investment activity has declined in recent years.”
