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New report shows Australia’s rental crisis deepening

A new report shows Australia’s rental crisis continues to deepen, with fewer rental properties in the country’s capital and a nationwide rental vacancy rate that has fallen to 1.5% compared to this time last year. doing.

PropTrack’s March 2023 Rentals Report shows total rental supply in the capital down 18.3% year-over-year, while rental inquiries by listing on realestate.com.au increased 8.3% year-over-year Did. Same period.

And landlords appear to be capitalizing on strong demand, with overall rents in the capital rising 13% year-on-year in March to $520 a week.

camera iconLong lines to inspect rental properties are no longer a rare sight in the Australian capital. NCA NewsWire / Nicholas Eager credit: NCA Newswire

PropTrack’s director of economic research, Cameron Kusher, said the rental market remains tight in the first quarter of 2023, with Sydney, Melbourne and Perth being particularly stressed.

“The challenge for renters is exacerbated by the fact that rising interest rates are reducing their ability to borrow,” said Kusher, who is also the author of the report.

“This makes it harder for renters to transition to first home buyers, makes it more difficult for investors to buy properties, and limits rental supply.

“The rapid recovery of immigration to Australia has also increased competition for rental properties.

“There is a shortage of rental properties as most people arriving in Australia do not own property in the country and are looking for rental properties.”

Chart of proptrack's rent report for March 2023
camera iconRental vacancy rates over time as shown in PropTrack’s rental report for the March 2023 quarter. credit: attached

However, the same report shows that conditions in the country are improving, with local rental demand down 41.7% year-on-year through March.

“The regional market is seeing weaker demand as the trends caused by the pandemic subside,” Kusher said.

“The number of people leaving the capital for the countryside is decreasing, some are returning to the capital, and others who are staying in the countryside may be buying now.

“These trends are expected to continue, further easing local rental pressure.”

Chart of proptrack's rent report for March 2023
camera iconMonthly gross rental listing as shown in PropTrack’s rental report for the March 2023 quarter. credit: attached

He said housing supply continues to be a major driver of the rental crisis, with investors retreating, few new investors entering the market, and construction shifting to owner-occupier projects rather than investment. said.

The report also found new rental listings increased by 2.2%, the first increase to new listings since December 2020.

But they’re picking up steam fast, with the median rental time listed on realestate.com.au dropping to a record low of 18 days.

https://www.perthnow.com.au/news/new-report-shows-australias-rental-crisis-is-deepening-c-10467201 New report shows Australia’s rental crisis deepening

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