key takeaways

Key takeaways

The number of homes for rent in Australia’s cities has more than halved to a new historic low in the past month as the rental crisis takes hold. Vacancy rates around the country now sit uniformly at crisis levels.

In the past 12 months to March, house rents in the combined capitals jumped 8.6% to a record $508 per week.

Sydney had its largest annual increase in 13 years, of 9.1% to a record $600.

The worst is yet to come for tenants, with rental demand remaining elevated two years after the onset of the pandemic, and there being just no properties for lease.

The number of homes for rent in Australia’s cities has more than halved to a new historic low in the past month as the rental crisis takes hold.

Capital city rental supply tightened by a further 5.4% last month in May, totalling an astonishing 54% slump since May 2020, according to the latest Domain Rental Vacancy Rate Report.

Vacancy rates around the country now sit uniformly at crisis levels, ranging from a critical 0.3% in Adelaide to 1.6% in Melbourne.

Melbourne’s vacancy rate continued its downward trend, falling every month since December 2021.

Renting Market2

Sydney remained at its lowest vacancy rate (1.4%) since Domain records began in 2017 while Brisbane fell to a record low, sitting at 0.6%.

Canberra, Adelaide, Perth, and Hobart held steady and remained tight while Darwin’s rate was just 0.1% off a record low.+

Across combined capitals, the number of vacant homes dropped 5.4% to just 19,715.

Rental stock in Sydney fell another 3.3% to just under 8,000.

Melbourne’s monthly decline cut its total rental listings to 8,244 – a 53.8% plummet over the past 12 months which is the sharpest decline of all the capital cities.

Listings in Brisbane fell 4.8% to just above 1,500, Perth’s vacancies fell 4.1% to just above 1,000 listings and Darwin’s listings dropped 10.1% to just below 100.

Chart01

And the worst is yet to come

Record-high asking rents and reduced choice in rentals resulted in tightening conditions that continued to favour landlords and increased the likelihood of rental price rises after the reduction in rental prices seen during Covid, the report explained.

The dearth of new apartment developments, the arrival of overseas migrants, and the return of international students will see rental demand remain elevated, worsening conditions for tenants.

The continued recovery and resurgence of the rental market see demand exceeding supply two years from the onset of the pandemic, the report adds.

This means we could see lower vacancy rates and even higher rents in the coming months – there are just no properties for lease.

Renting Market3



Source link

Leave a Reply

Your email address will not be published.