Tenants are continuing to struggle with rising rents and limited supply, with new data showing the total number of rental listings has fallen to a record low.
PropTrack data shows the number of new rental listings declined 5.7% in the year to September, with the fewest new listings in September for more than a decade. The total number of rental listings fell 7.1% on the year before to hit a record low.
The national vacancy rate was also sitting at a record low of 1.1%, down from 1.3% a year earlier, the PropTrack report found. The number of inquiries for each listing rose from 24.5 a year ago to 24.8.
Limited supply and strong demand has seen rental prices increase. The national median weekly advertised rent on realestate.com.au at the end of the September 2023 quarter was $550 a week, up 3.8% over the quarter and 14.6% over the year.
Over the 12 months to September 2023, capital city rents increased by 12.2%, while regional rents were 6.7% higher.
PropTrack director of economic research and the author of the report, Cameron Kusher, said the market remains “challenged” with renters facing significant competition for limited rental stock.
“These conditions have pushed the cost of renting much higher over the past year,” Kushner said.
“For first home buyers, higher rents make it harder to save for a deposit, while borrowing capacities have reduced and prices continue to rise, making it difficult to enter into home ownership.
“From here, we expect rents will continue to climb in the major capital cities due to persistent low supply and strong demand.”
Outside the capital cities, the expectation was that rental price growth would continue to slow, he said.
PropTrack is the analytics division of REA Group, which does not advertise the number of listings but uses data from realestate.com.au to compile the monthly report.
The data comes as affordable housing advocates warn that without urgent intervention the tightening market will continue to drive people into insecure housing.
The spokesperson for Everybody’s Home, Maiy Azize, said the tight rental availability is squeezing renters and underscores the urgent need for more affordable homes.
“Australia has built over a million new homes over the last decade – but these numbers show that the homes aren’t getting to the people who need them,” she said.
“Relying on the private sector isn’t working. Only the federal government can create affordable rentals for the people who need them, when and where they need them.
“Australia needs 500,000 homes to end our social housing shortfall, and stop renters from being at the mercy of a volatile market.”
