A brutal year for renters ends as it began – with payments heading sky high
There was no Christmas miracle for renters as rent hikes continued into the holiday period before the market’s busiest time of year.
The latest PropTrack Market Insight report found the median national rent had continued on its meteoric rise, increasing 1.8 per cent over the December quarter to $580 per week.
This is an 11.5 per cent increase compared to the previous year, which means rents are $60 more expensive a week than they were in early 2023.
Much to the chagrin of urban renters, capital city prices were 13.2 per cent more than the year before, bringing the median to $600 a week as units in Sydney, Melbourne and Brisbane increasing by 15 to 17 per cent.
The west Australian metropolis fared no better, with median rents surging 20 per cent in the span of a year.
With the second tightest rental vacancy rate behind Adelaide, Perth’s median rent is now 66 per cent higher than it was before the COVID-19 pandemic.
According to PropTrack economist Angus Moore, the short-term situation is unlikely to improve.
“Rental markets are extremely challenging for renters, with rents continuing to grow very quickly across much of the country amid strong demand and very low vacancy rates,” he said.
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“As we head into what is typically the busiest time of year for rental markets in January, renters will, unfortunately, continue to face growing rents.”
But Mr Moore says renters may find relief on the horizon as 2023 data showed rental growth had slowed compared to the year before.
Regional renters have already experienced some reprieve with their rents having plateaued at $500 per week since June.
But Western Australia and Queensland were home to the highest non-metropolitan rents at a median $580 per week – a 16.7 per cent and 11.5 per cent increase on the previous year.
