Unit rents are increasing faster than house rents, according to CoreLogic’s quarterly rental review.
It shows the difference between a median house and median unit rents is now only $34 per week after unit rents rose by 4.4% in the three months to May. During the same period, house rents rose by 2%.
CoreLogic economist Kaytlin Ezzy says while rents are high across the board, the monthly rate of rental growth eased in June.
“The softening in rental growth occurred in spite of an ongoing surge in overseas migration and a continued shortage in rental supply, suggesting an increasing portion of tenants are reaching their affordability ceiling,” Ezzy says.
“While rental demand from overseas migrants is likely to remain strong for some time yet, particularly across the largest capitals, we’ve already seen a reduction in domestic rental demand via an increase in the average household size.”
Nationally rents are 27.4% higher than at the start of COVID, or about $127 per week more.
