New Analysis Reveals Capital City Renters Struggling with $15,000 Annual Increases Since 2020
The report reveals that rent inflation is hitting Australians hard in capital cities, with renters paying significantly more for housing compared to January 2020. In major cities, annual costs for houses have risen by $14,700 and for units by close to $9,600. Rent prices have surged across the country, with Sydney and Perth experiencing the sharpest increases, followed by Brisbane and Adelaide. This spike in rent prices is putting immense pressure on urban households, pushing many into severe housing stress and homelessness. Sydney house rents have increased by $356 weekly, equating to $18,512 annually, while Perth rents have climbed by $352 per week, resulting in a yearly increase of $18,304.
Unit rents in Sydney and Perth have also seen significant hikes of $201 and $279 per week respectively, translating to annual increases of $10,452 and $14,508. Brisbane and Adelaide have experienced similar increases in unit rents, along with smaller capitals like Hobart and Darwin. Rental inflation has accelerated in capital cities since mid-2021, driven by the return of demand to inner-city areas after COVID-19 disruptions. ABS data confirms this trend, noting low vacancy rates and a tight rental market as key factors.
Rental price growth varies based on proximity to city centres, with closer areas experiencing sharper increases. Since March 2023, capital city rent inflation has outpaced regional areas, although regional rents overall have risen higher since 2019. Another analysis shows that teenagers in Sydney spend a significant portion of their income on rent, highlighting the challenges posed by rising rents. While rents have increased significantly since the pandemic, recent movements have been more subdued, with mixed results across Australia’s capital city rental markets.
