Cheaper Markets Feel Rent Squeeze
Affordable rental locations have recorded bigger rent rises than the more expensive end of the market, according to PropTrack analysis.
Senior economist, Angus Moore, says rents nationally surged by 11.5% in 2023 after 15.6% growth in 2022. The median national rent is now $600 per week, compared with $400 per week in 2020.
He says rents in the most affordable end of the market have increased by 43% in the past five years, compared to 30% in the most expensive markets.
The PropTrack Rental Affordability Index shows affordability is toughest in New South Wales, Tasmania and Queensland.
Victoria is Australia’s most affordable state for renters according to the report. At $550 per week, median advertised rents in Melbourne are $50 lower than in Brisbane and Perth.
“This improvement reflects the slower pace of rent growth in Melbourne since the pandemic,” the report says.
While all parts of Australia have had substantial increases in rent, growth has been particularly strong in Perth where rents have increased 67% since the start of the pandemic.
Brisbane and regional Queensland rents increased by 50% and 53%, respectively.
