Australian Rent Prices Hit Record Highs, Pushing Renters to Outer Suburbs




Rents have reached a historic high in Australia, with the national average now at $627 per week. However, the comparison between urban centres and regions is stark. City rents have reached an average of $750 per week in Sydney while the regional suburbs average $540 per week. CoreLogic's April 2024 data shows an 8.5% increase in annual rent growth. Eliza Owen, CoreLogic’s Head of Research, highlighted that the fastest growth is seen in regional areas and the outer suburbs, suggesting that affordability is pushing people to these locations. 

Perth experienced the highest annual increase among state capitals, with a 13.6% rise, bringing the median rent to $669. Western Australia’s strong net interstate and overseas migration, coupled with employment growth in mining, has driven significant rental demand. Melbourne follows with a 9.6% rise, particularly in Dandenong and Tullamarine-Broadmeadows. Adelaide's median rent reached $580, reflecting a 9.1% increase, with Salisbury and Playford leading the growth. 

Sydney saw a 9% rise in rents, with Fairfield and Blacktown experiencing the most substantial increases. Brisbane’s median rent grew by 8.5%, with Wynnum-Manly and Capalaba at the forefront. Darwin and Canberra also saw rises, albeit at a slower pace, while Hobart was the only city to record a slight decrease. 

Regional areas and outer suburbs have seen significant rental growth, with areas like Campbelltown in Sydney and Casey North in Melbourne experiencing substantial increases. This trend stresses the cost-of-living crisis, exacerbating housing insecurity for lower-income households.  

Owen attributes the surge to short-term factors like pandemic-induced household changes and spikes in migration, alongside longstanding policy failures and underinvestment in affordable housing. Increasing construction capacity and addressing the pipeline of incomplete dwellings are crucial steps towards alleviating this crisis. 

Read the full article here https://www.abc.net.au/news/2024-05-06/median-rent-record-high-corelogic/103809092

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