The high price of rentals in the Sydney metropolitan area has prompted some families to move from the inner-city suburbs in search of more affordable dwellings, according to PRDNationwide research.
The company says popularity of three bedroom houses in Wyong and Port Stephens has risen steeply in the last two years, with strong demand for family homes driving up rental yields for investors in the region.
Port Stephens, a two-and-half hour drive north of Sydney, has seen a 14% increase in new bonds lodged with Housing NSW as renters steer away from more expensive Sydney locales and flock to the seaside town to take advantage of cheaper accommodation and lifestyle benefits for their families.
PRDnationwide research analyst, Oded Reuveni-Etzioni, says the price difference between Sydney and that of more affordable areas to the north and south of the city is significant and families are starting to look elsewhere to escape high-priced, high-density living.
"The research shows that the top five regions for rental price growth in family homes are all outside metropolitan Sydney," says Reuveni-Etzioni. "In the current climate, people are trying to live within their means and as a result there has been a drift away from inner-city living for families. The cityscape has changed with large scale one and two-bedroom unit developments in Sydney catering for young professionals and the student population, as shown by an increase in residential tenancies in areas like Canada Bay, Marrickville and Ku-Ring-Gai."
PRDnationwide Leichhardt principal, Danny Harb, agrees.
"In recent times, we have noticed that families have struggled to enter the inner-city market due to price hikes and greater competition at auctions," Harb says.
"Tenants have experienced no joy either, feeling the pressure of low vacancies, driving the rental market even higher. We are experiencing younger families having to commute from outer suburbs where real estate is somewhat more affordable. Most of the tenants occupying investments these days are having to share in order to afford the inner city life."