Rental Surge

Rental growth is continuing to outpace wage growth, pushing affordability to record lows.

Nationally, rents are up by 5.4% in the 12 months to January and by 43.9% in the past 5 years.

The regional markets have recorded stronger rental growth in the past 12 months with the combined regionals up by 6.1% compared to the combined capital cities which are up by 5.1%.

In the past 12 months, Regional Western Australia had the highest growth in rents, followed by Regional Tasmania and Regional South Australia.

Darwin had the highest renal increase in the capital city market, followed by Hobart and Brisbane

Cotality Research Director Tim Lawless says rents have surged almost three times faster than wages over the past five years.

“Before the pandemic, renters in many parts of Australia were seeing wages grow a little ahead of rents or at least keep pace. Since 2020, a combination of tight vacancy rates, smaller household sizes and sluggish new housing supply has pushed the market into a very different phase, one where rents are clearly in the driver’s seat.”