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.
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:
- Airlie Beach
- Batemans Bay
- Coffs Harbour
- Gold Coast
- Hervey Bay
- Mount Barker
- Mount Gambier
- Mornington Peninsula
- Port Macquarie
- Sunshine Coast
- Yamba and Yeppoon.