‘Staggering’ rent rise recorded

Renters are bearing the brunt of skyrocketing housing costs as rents soar across the capital cities.

Advertised rents rose by 2.0 per cent in the June quarter to sit at a median of $520 per week, according to the latest report from PropTrack.

That’s a rise of 11.8 per cent in the past year, with the median price of $465 per week in June last year.

Capital cities led the charge for the increase, rising by 5.8 per cent across all the majors to a median price of $550 per week in the June quarter.

Rents in the capital cities have risen by a “staggering” 17 per cent in a year, led by Sydney and Melbourne.

“Rental markets continue to be extremely challenging for renters, with rents surging across much of the country amid strong demand and very limited availability,” report author Angus Moore said.

“This is especially true in Sydney and Melbourne, where weekly rents have increased significantly after falling in these cities during 2020 and 2021.”

Those hoping to find a cheaper price by moving into a unit will be sorely mistaken, with large increases in the cost of renting an apartment.

Sydney unit rents have risen by 19.0 per cent in the past year, followed by Melbourne at 17.5 per cent and Brisbane at 15.3 per cent.

Mr Moore predicts there is more pain to come for renters in the capitals, as the market remains tight, but some lucky cities could escape the squeeze.

“Rents are likely to continue growing in capitals over the coming months, but with rental vacancy rates looking to have stabilised, and growth easing in some capitals, national rent growth may start to slow,” he said.

Here is a state-by-state breakdown

NSW:

It‘s no surprise that NSW is the most expensive place to rent a property, with Sydney infamous for its sky-high home prices.

Sydney renters can be expected to fork out a median price of $620 per week for a dwelling after a 13.8 per cent rise in the past year.

Apartments are only marginally below that cost at a median $595 per week after a staggering 19 per cent increase in the past 12 months.

Those renting in regional NSW get to enjoy a reprieve from rising rental costs, with units remaining at the same median price and house rents decreasing by 3.6 per cent.

VICTORIA:

Melburnians are in the lucky position of having some of the lowest rental costs around the country.

Despite being in that position, the cost of renting a dwelling has increased by 4.3 per cent in the June quarter and by 11.6 per cent in the past year to sit at a median of $480.

Melbourne units are also becoming considerably more expensive to rent out, rising 17.5 per cent in the past 12 months to reach a median of $470 per week.

Country Victorians have also received a reprieve from rising rental costs, with the median price for dwellings and units not moving in the past quarter.

QUEENSLAND:

The cost of renting in the Sunshine State capital has now outstripped Melbourne, with a 14.9 per cent increase in the past year.

The average dwelling will set back a Brisbane renter $540 per week, while units cost an average $490.

Rental prices for regional Queenslanders have gone backwards in the past quarter by around 1.0 per cent.

WESTERN AUSTRALIA:

Perth residents have copped the largest increase in rental prices in the past year, with dwellings going up by 15.6 per cent.

The average Perth dwelling will set residents back $520 per week in rent, with the cost of a unit sitting at $470 per week.

Those in regional WA have not escaped rising costs, with dwellings going up by 11.1 per cent in the past year to sit at $500 per week and units increasing by 13.9 per cent to reach $450 per week.

SOUTH AUSTRALIA:

Prices have remained flat in the past quarter for Adelaide dwellings at a median of $480 a week, while units have increased by 2.4 per cent to reach $420 per week.

The jump in the cost of renting is higher in the past year, with dwellings rising by 10.3 per cent in the last 12 months.