Revealed: When and where to find the best rentals

By Gerv Tacadena | 28 Jan 2022

The rental market moves in seasons and there are specific times and places to look for a property for tenants who would like to get bang for their buck.

REA Group and PropTrack economist Angus Moore breaks down the “when” of the process of finding the best deals, saying that there are more options in January, but a cheaper deal might come a little later.

“January is the busiest time of the year in the rental market, with more new listings coming to market than any other month — on average, January has 16% more new rental listings than a typical month,” he said.

Mr Moore said new rental listings are usually higher by 10% to 20% at the start of the year that the monthly average.

“People look to move at the start of the year and that means they move out of their current rental, which brings that rental to market,” he said.

“Of course, if rentals are coming to market because the previous tenants have moved out, we should see more people looking to move in January as well.”

However, Mr Moore said the most expensive rentals are usually at the beginning of the year, particularly in February.

The best months to find the cheapest rental properties are in April and May.

It is worth noting, however, that listings are usually fewer in these months, so tenants might need to do a more thorough search to find a cheap rental.

“That said, finding a rental in May is not going to yield big savings — seasonality means that rents in May are on average around 0.9% cheaper than we might otherwise expect,” Mr Moore said.

“Based on the Australian Bureau of Statistics’ estimate of average weekly rent at $360, that’s a saving of just under $200 over a year.”

Tenant-friendly suburbs

A report from RentRabbit.com.au found the best tenant-friendly suburbs within commuting distance to the central business district.

The quarterly report identified 20 suburbs where tenants can find affordable house rents.

Victorian suburbs dominated the latest list, with 15 suburbs cracking the ranking. Three suburbs in Western Australia and two in Queensland also made it on to the list.

The suburbs in the rankings all had a median weekly rent of $405 and are located within 40 kilometres of the CBD.

Top 20 tenant-friendly suburbs

State

Suburb

Postcode

Distance to Capital City

Median Weekly Rent

VIC

Hoppers Crossing

3029

37km

$350

VIC

Wyndham Vale

3024

37km

$355

VIC

Derrimut

3030

18km

$380

VIC

Pakenham

3810

74km

$380

QLD

Bellbird Park

4300

23km

$380

VIC

Tarneit

3029

37km

$390

VIC

Epping

3076

34km

$390

VIC

Mill Park

3082

34km

$390

QLD

Logan Reserve

4133

27km

$390

VIC

Sunbury

3429

33km

$395

VIC

Truganina

3029

37km

$400

VIC

Mickleham

3064

19km

$400

VIC

Craigieburn

3064

19km

$400

VIC

Mernda

3754

34km

$400

VIC

Narre Warren

3805

44km

$400

WA

Thornlie

6108

18km

$400

VIC

Bacchus Marsh

3340

43km

$400

WA

Cannington

6107

9km

$400

WA

Butler

6036

18km

$400

VIC

Reservoir

3073

11km

$405

Two-speed rental market

Proptrack economist Paul Ryan said the latest set of inflation data from the Australian Bureau of Statistics proves how Australia’s rental market is moving at two completely different direction.

“Rental prices in our largest capital cities, Sydney and Melbourne, are sliding, but it's a different story in Australia's other capitals and regional hubs,” he said.

Inflation data showed that rents have fallen by 4.2% in Sydney and 2.5% in Melbourne since early 2020.

On the other hand, rents have been growing strongly elsewhere, up by 2.5% to 7.2% since the pandemic began.

“Remote working arrangements combined with preference shifts towards space and lifestyle have played a significant role in the cost of rent,” Mr Ryan said.

“For many, extended lockdowns have also tarnished the appeal of our denser cities.”

Interestingly, the growth in regional rents have outpaced that of capital cities.

“Regional areas have benefited from all of the reasons Sydney and Melbourne have fallen out of favour with renters — more people able to work remotely and desiring more space and lifestyle changes.”

Photo by @kindelmedia on Unsplash.

Top Suburbs : sth toowoomba , the basin , millner , cardiff south , hebersham

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