{"id":182893,"date":"2024-05-06T01:00:46","date_gmt":"2024-05-05T15:00:46","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=182893"},"modified":"2024-05-10T08:54:36","modified_gmt":"2024-05-09T22:54:36","slug":"rent-growth-picked-up-in-the-start-of-2024-taking-rents-to-new-record-highs","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/rent-growth-picked-up-in-the-start-of-2024-taking-rents-to-new-record-highs\/","title":{"rendered":"Rent growth picked up in the start of 2024, taking rents to new record highs"},"content":{"rendered":"

The median weekly rent value across all Australian dwellings has hit a fresh record high of $627 per week, and rental costs range from $770 per week in Sydney, to $547 in Hobart .<\/p>\n

Summary of median weekly rent and value change \u2013 data as of April 2024<\/strong><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Region<\/strong><\/td>\nMedian weekly rent<\/strong><\/td>\nMonthly change in rents<\/strong><\/td>\nQuarterly change in rents<\/strong><\/td>\nAnnual change inrents<\/strong><\/td>\n<\/tr>\n
Sydney<\/td>\n$770<\/td>\n1.0%<\/td>\n3.0%<\/td>\n9.0%<\/td>\n<\/tr>\n
Melbourne<\/td>\n$589<\/td>\n0.8%<\/td>\n2.8%<\/td>\n9.6%<\/td>\n<\/tr>\n
Brisbane<\/td>\n$649<\/td>\n0.8%<\/td>\n2.1%<\/td>\n8.5%<\/td>\n<\/tr>\n
Adelaide<\/td>\n$589<\/td>\n0.6%<\/td>\n2.4%<\/td>\n9.1%<\/td>\n<\/tr>\n
Perth<\/td>\n$669<\/td>\n1.2%<\/td>\n3.9%<\/td>\n13.6%<\/td>\n<\/tr>\n
Hobart<\/td>\n$547<\/td>\n0.2%<\/td>\n2.5%<\/td>\n-0.2%<\/td>\n<\/tr>\n
Darwin<\/td>\n$617<\/td>\n-0.3%<\/td>\n-0.1%<\/td>\n3.5%<\/td>\n<\/tr>\n
Canberra<\/td>\n$674<\/td>\n0.6%<\/td>\n1.9%<\/td>\n1.8%<\/td>\n<\/tr>\n
Combined<\/p>\n

capitals<\/td>\n

$659<\/td>\n0.9%<\/td>\n2.9%<\/td>\n9.4%<\/td>\n<\/tr>\n
Combined<\/p>\n

regionals<\/td>\n

$540<\/td>\n0.7%<\/td>\n2.5%<\/td>\n6.4%<\/td>\n<\/tr>\n
National<\/strong><\/td>\n$627<\/td>\n0.8%<\/td>\n2.8%<\/td>\n8.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: CoreLogic<\/em><\/p>\n

Rather than rent increases being limited by affordability constraints, annual rent growth has once again started gathering pace <\/em>at the start of 2024.<\/p>\n

Nationally, annual rent growth went from a recent low of 8.1% in October 2023, to 8.5% in April.<\/p>\n

Even markets where rents had been falling are now showing values start to steady or increase again<\/span><\/h2>\n

Figure 2 shows rolling annual growth in house and unit rents by greater capital city area.<\/p>\n

\"Rolling<\/p>\n

Canberra house rent falls bottomed out at -3.4% in the year to September, though rents have been rising over the past seven months, taking the market back into a year-on-year increase of 1.8%.<\/p>\n

In Hobart, house rents are back in positive growth territory, and unit rents seem close to flattening out.<\/p>\n

Figure 3 shows regional rent growth is also back on the rise.<\/p>\n

\"Rolling<\/p>\n

Annual growth in regional unit rents bottomed out at 5.0% in the year to September and climbed back up to 6.9% in the 12 months to April.<\/p>\n

Regional house rents have seen an even more dramatic reacceleration, where annual growth in rents has gone from 3.4% in September to 6.2% in April this year.<\/p>\n

The pick up in regional rent growth was most pronounced in regional QLD and Tasmania houses (each saw a pick up in annual growth of 350 basis points between September 2023 and April this year).<\/p>\n

Part of the reason for the re-acceleration in rents nationally could be due to renters being forced into more affordable, peripheral housing markets as they become priced out of more desirable and central metropolitan locations.<\/p>\n

Areas where rents are slightly lower may offer more space for group households or have slightly less competitive rental conditions which are potentially being more targeted by prospective tenants.<\/p>\n

This is reflected in Figure 4, which shows the average annual rent growth across SA3 regions by the average dwelling distance to the nearest CBD.<\/p>\n

\"Rolling<\/p>\n

Between October last year and April this year, growth re-accelerated most strongly in greater capital city areas within 30-40km of city centres.<\/p>\n

In Sydney, this included Campbelltown, where annual growth went from 9.1% in October to 13.4% in the year to April.<\/p>\n

In Brisbane, this included Jimboomba, where annual rent growth went from 3.8% to 6.4% in the same period.<\/p>\n

Casey \u2013 North in Melbourne is also within this distance, where annual house rent growth went from 11.7% to 13.1% in the same period.<\/p>\n

While these outer-suburban markets are seeing the most rapid re-acceleration in rents, the pickup in rent growth has been fairly broad-based, with only rent markets within 10 km from city centres showing a consistent easing in average annual growth.<\/p>\n

Many of these markets are only seeing rent growth ease from a very recent high.<\/p>\n

Supply and demand pressures remain high across Australia\u2019s rental market<\/span><\/h2>\n

Outside of these regional variations, supply and demand pressures remain high across Australia\u2019s rental market more broadly.<\/p>\n

On the demand side, experimental estimates from the ABS suggest average household size only continued to decline to 2.50 people in June 2023.<\/p>\n

This comes despite a material uplift in group households, which was far outpaced by a rise in lone and two-person households.<\/p>\n

Net overseas migration in the year to September was just under 550,000, with temporary visa holders accounting for over 90% of this figure.<\/p>\n

This means overseas arrivals were particularly likely to skew to rental accommodation through the period.<\/p>\n

Considering an average household size of 2.5 people, net overseas migration levels implied new household formation of over 200,000 in the year to September.<\/p>\n

At a time when supply constraints persist in the residential construction industry, only 173,000 new dwellings were completed in the same period.<\/p>\n

Outlook<\/span><\/h2>\n

Given there is little that can be done on the supply side for renters in the short term, a reprieve in the rental market is most likely to come from a moderation in net overseas migration, as some temporary migrants start to depart, and arrival numbers normalise post-COVID.<\/p>\n

Centre for Population forecasts indicate this could occur from the next financial year.<\/p>\n

Until then, renters may be seeking more shared accommodation, or exploring cheaper rental markets across the outer metro fringes or regional Australia.<\/p>\n\r\n\r\n\r\n

<\/div>\r\n
<\/div>\n","protected":false},"excerpt":{"rendered":"

The median weekly rent value across all Australian dwellings has hit a fresh record high of $627 per week, and rental costs range from $770 per week in Sydney, to $547 in Hobart . Summary of median weekly rent and value change \u2013 data as of April 2024 Region Median weekly rent Monthly change in…<\/p>\n","protected":false},"author":71,"featured_media":167077,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[54,1118,1186],"tags":[572,1183],"class_list":["post-182893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-property-updates","category-news-and-features","category-weekly_latest","tag-feature-featured","tag-homepage-top"],"acf":[],"yoast_head":"\nRent growth picked up in the start of 2024, taking rents to new record highs<\/title>\n<meta name=\"description\" content=\"The median weekly rent value across all Australian dwellings has hit a fresh record 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