Renters in capital and regional cities are likely to end up paying more this year, as the market becomes increasingly tight and in favour of landlords.

Propertyology’s latest report identified 58 cities where rents for a standard house are likely to rise by at least $5,000 this year.

Four of these cities are state capitals, including Adelaide, Brisbane, Canberra, and Perth.

The rest are regional cities, which are currently experiencing an undersupply in rental properties.

Propertyology head of research Simon Pressley said the undersupply being felt across Australia’s rental markets is the “worst ever.”

“For perspective, the total national population increased by 1.5 million over the last five years, so one would expect a significant increase in the total volume of dwellings advertised for rent over that period — alas, it reduced from 86,683 in December 2016 to a piddly 57,558 in December 2021,” he said.

The numbers are more concerning when Melbourne and Sydney are excluded — 15 million people live in other capital cities and 200 regional cities while there were only 16,896 dwellings advertised for rent in December.

Five years ago, 61,980 dwellings were available for tenants.

Mr Pressley said this situation did not happen overnight but over the course of several years.

“Propertyology has consistently expressed concern that a series of regulatory blockages was seriously suppressing rental supply, thereby creating pressure on household budgets of tenants,” he said.

Over the course of the pandemic, rental markets became more competitive outside Sydney and Melbourne.

For instance, Queensland markets such as Cairns, Hervey Bay, Gold Coast, and Sunshine Coast have been significantly squeezed as demand surged.

“The volume of properties on their rent roll has been shrinking for a few years while the number of tenant applications typically received for a property when it comes available for rent continually increases,” he said.

According to Propertyology, the following regional cities will witness a $5,000 increase in rents this year:

  1. Airlie Beach
  2. Albany
  3. Albury
  4. Ballina
  5. Batemans Bay
  6. Bathurst
  7. Bendigo
  8. Bowral
  9. Bundaberg
  10. Burnie
  11. Busselton
  12. Cairns
  13. Coffs Harbour
  14. Dubbo
  15. Esperance
  16. Geelong
  17. Geraldton
  18. Gladstone
  19. Gold Coast
  20. Gosford
  21. Goulburn
  22. Gympie
  23. Hervey Bay
  24. Kiama
  25. Kempsey
  26. Kingscliff
  27. Launceston
  28. Lismore
  29. Lorne
  30. Mackay
  31. Maitland
  32. Maryborough
  33. Mount Barker
  34. Mount Gambier
  35. Mornington Peninsula
  36. Mudgee
  37. Newcastle
  38. Noosa
  39. Orange
  40. Port Macquarie
  41. Rockhampton
  42. Sunshine Coast
  43. Toowoomba
  44. Torquay
  45. Townsville
  46. Traralgon
  47. Wagga
  48. Wangaratta
  49. Warrnambool
  50. Warragul
  51. Warwick
  52. Wodonga
  53. Wollongong
  54. Yamba and Yeppoon.

Photo by @prakash__ on Unsplash


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