Renting vs Buying Buying is becoming a more viable option for many as new data shows rents are rising faster than mortgages.
The latest inflation data from the Australian Bureau of Statistics (ABS), shows the consumer price index (CPI) rose by 1% in the most recent quarter. That brings the total increase in the 12 months to March to 3.6%.
The data also shows that aggregate rental prices have risen 7.7% in the past 12 months – the strongest increase since 2009. At the same time, new mortgage inflation increased 5.1%.
According to the ABS data rental inflation has outpaced mortgage inflation since June 2023.
It shows that inner city suburbs within 12.5km of the CBD now have the highest rental inflation in Australia.
According to an ABS spokesperson the rental inflation rate for areas further from the CBD has been moderating since mid-2023.
The CPI data also shows that inflation is moderating in other areas including food.
