Advertised rental prices have witnessed a considerable increase, putting additional pressure on those in Sydney, Melbourne, and Perth, PropTrack reported.
New analysis by PropTrack has revealed startling trends in the rental market, highlighting an upward trajectory in rents amidst varied growth rates across different cities and dwelling types.
According to recent PropTrack data, the national median rental price has surged by 3.4% in the first quarter alone, reaching a new high of $600 per week. This period, known for its seasonal strength in the rental market, recorded the second-highest growth rate for a first quarter, trailing only behind the 2023 year.
“Advertised rental prices rose substantially in the first quarter of 2024, up 3.4% compared to 1.8% in the previous quarter,” said Paul Ryan (pictured above), a senior economist at PropTrack.
Ryan added that while the first quarter often sees heightened activity, the broader trend indicated a moderation in rent growth, with the past year’s 9.1% increase marking the slowest since December 2021.
The brunt of the rental price increases has been most acutely felt in Australia’s capital cities, where rents have climbed by 13.6% over the past year. Among these, Perth (+15.5%), Melbourne (+13.1%), and Sydney (+10.8%) recorded the highest jumps.
Ryan highlighted the particular strain on renters in these cities, stating, “Rent pressure remains firm in most capitals, with weekly rents jumping $75 over the past year.”
In contrast, Brisbane (flat) and Adelaide (+0.9%) offered some relief, showing minimal increases over the quarter. The respite comes after both cities experienced sustained rent hikes post-pandemic.
The data suggested a slowing momentum in rent growth, albeit in the context of a market that remains tight and competitive, especially for more affordable housing options such as units, which have seen a 13.5% increase in rents over the past year.
Despite signs of slowing rent growth, the rental market’s conditions remain challenging, with vacancy rates hitting record lows. The national increase in weekly rents by $180 since the pandemic began underscored the ongoing affordability crisis for renters.
“Rent growth is slowing, but rental market conditions remain very tight,” Ryan said. “This suggests continued affordability pressures for renters in 2024.”
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