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Rents Rise Faster Than Wages

Rents Rise Faster Than Wages

The speed of rental growth is outpacing that of wages.

Analysis of the Australian Bureau of Statistics wage price index and Domain rent data shows asking rents for houses increased by more than six times and units by more than four times, the rate of wage growth in the March quarter.

In the quarter wages rose by 0.8% while combined capital city asking rents for houses rose by 5% and units were up by 3.3%.

Grattan Institute economist Joey Moloney says the only thing that will help those experiencing rental stress is to continue to increase rent assistance.

According to SQM Research capital city asking rents fell by 0.5% in the month to June 4 which is the largest monthly drop in rents since the start of the pandemic in April 2020.

It says Darwin rents fell by 6.3% over the month and Sydney was down by 1.1%. Rents increased in Adelaide by 2.1% over the same period, Brisbane was up by 0.7% and Melbourne remained the same as the previous month.


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