How is the cost of renting changing in your city? Rent.com.au has released the latest market data for June 2022, including the shift in median rent, price per room and leasing time. Download the full report here.

In summary… 📜

  • Vacancy issues continue: Since 10 August 2021 (Census night), the number of available rental properties has dropped by 23%.
  • Sydney was the only metro capital to record consistent increases in the median rent month-on-month for both property types.
  • More than a million properties (1,043,776) were sitting vacant on Census night (10 August 2021) out of the nearly 11 million dwellings.

Table 1: Median rent (apartments v houses) and price per room

Metro areaAPARTMENTS% change (monthly)HOUSES% change (monthly)PRICE PER ROOM (all property types)% change (monthly)
Sydney$5250.90%$6901.40%$2900%
Melbourne$4102.50%$4600%$1972.60%
Brisbane$4500%$5500%$1980.50%
Perth$4200%$495-1%$1752.90%
Adelaide$3800%$4851%$175­­­4.1%
Hobart$395-10.20%$5503.70%$197-2.90%
Darwin$470-0.40%$6203.30%$2101.90%
Canberra$520-1.80%$6752.20%$2664.30%
National median$4600%$5200%$2201.80%
Source: Rent.com.au 2022 property leasing data

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Price trends (June 2022)

How median rents are changing 👇

It’s been a challenging month. Renters are under increasing strain as cost-of-living pressures bite country-wide, and they face up against rent rises. And as the cost of basic living essentials increases, the number of affordable homes is only getting lower. It’s not just a matter of ‘moving elsewhere,’ either. The lack of affordable properties in both city and regional areas is making sure of that.

City and regional areas report high competition levels as affordability worsens across Australia. It’s a harsh combination of high demand meeting low vacancy rates and escalating prices, creating a tough market for renters to navigate. The number of homes available to rent has been decreasing since the pandemic’s start. Since the Australian Bureau of Statistics took its Census back in August 2021, there are 23% fewer available rentals across Australia. Victorian vacancies are down 32%, Queensland 27%, and New South Wales 21%. These numbers look less intensive month-on-month (Northern Territory and Western Australia are currently worst affected, down 4.9%), but the situation remains challenging.

More than a million properties (1,043,776) were sitting vacant on Census night (10 August 2021) out of the nearly 11 million dwellings. They’re a mix of second homes, empty investment properties and gig-economy holiday rentals, prompting thought to encourage property owners to return these homes to the rental pool to relieve some of the current rental pressure.

As high demand and low vacancy combine, prices are also increasing across many parts of Australia. Higher mortgage interest rates could also impact affordability as some landlords seek to increase rents to cover costs. So what’s being done? Newly instated Prime Minister Anthony Albanese has pledged to build 20,000 social housing properties over the next five years as part of a $10 billion program. Caps on short-term rentals have been introduced in popular locations to help free up rentals for tenants. Renters are also being encouraged to consider buying a home with the rollout of the government’s shared equity scheme, Help to Buy.

Looking at June’s median rent data, the most affordable metro capital was Adelaide, where apartment rents were $380 a week. Sydney was the only metro capital to record consistent increases in the median rent month-on-month for both property types.

What will a room in a rental cost me? 💰

The price per room metric provides an alternate perspective on the cost of renting space within a property in Australia. Apartment rooms cost 16% more on average to rent in June 2022 than they did 12 months ago, with the steepest changes seen in Hobart (up 41.9% to $305/week), Melbourne (up 18.9% to $267) and Perth (up 12.8% to $253/week). House costs were also up, year-on-year, with an average of 7.8% across the board.

Melbourne apartments have become more expensive for the first time in since June 2021, rising 18.9% annually. The most significant change was seen in Darwin, with costs up 17.8% to $207/week. A room in a Canberra apartment will set renters back $347/week (up 6.9%) – and the most expensive of all metro areas this month.

Table 2: 12-month change in price per room (Apartments versus Houses)

APARTMENTSHOUSES
Metro areaPrice per room in Jun-22Annual change from June 2021Price per room in Jun-22Annual change from June 2021
Sydney$32512.1%$2269.7%
Melbourne$26718.9%$1539.5%
Brisbane$26013%$1668.7%
Perth$25312.8%$1535.7%
Adelaide$2008.1%$1609.1%
Hobart$30541.9%$1903.6%
Darwin$2257.1%$20717.8%
Canberra$3476.9%$2169.5%
National median$29016%$1727.8%
Source: Rent.com.au 2022 property leasing data

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How are the regions faring? 🌳

Record-low vacancy rates aren’t just being seen in the metro areas. Strong population growth in Australia’s regions and greater housing demand for detached houses due to a desire for a better lifestyle have been contributing factors.

In June, regional rents lifted slightly by 1.1% to $460 weekly. Regional renters have needed to dedicate a higher proportion of their incomes towards rent than their capital city counterparts, which seems unlikely to change in the immediate future. Much of the regional growth has been in the areas adjacent to the major capital city boundaries.

Regional Queensland led the pace of growth in June 2022, recording a month-on-month increase of 4.2%. Queensland was one of just two states to see prices rise. Despite a 6.5% fall in weekly rent, the Northern Territory remains the most expensive across Australia at $500 a week, compared to South Australia at $330 a week.

Table 3: Regional rents in June 2022

State/TerritoryJun-22% change from May 2022
New South Wales$4951%
Victoria$3900%
Queensland$4904.2%
Western Australia$4500%
South Australia$3300%
Tasmania$4200%
Northern Territory$500-6.5%
Aus. Capital Territoryn/an/a
National median$4601.1%
Source: Rent.com.au 2022 property leasing data

How long are rentals taking to lease? 

Rent.com.au’s average time on market measure is designed to explain the movement in median rents across Australia. The 17 median days to lease a property in Adelaide in May was 24% slower than in May – and the most significant change to time in market for both property types across the board.

Melbourne apartments stayed on market longest of all property types in June, averaging 24 days on Rent.com.au before leasing. Apartments saw some increased activity, with this property type moving quicker in Brisbane (5% faster month-on-month to 12 days) and Adelaide, 1% faster to 14 days.

APARTMENTSHOUSES
Metro areaJun-22MONTHLY change from May 2022ANNUAL change from June 2021Jun-22MONTHLY change from May 2022ANNUAL change from June 2021
Sydney20 days1% slower31% faster21 days4% slower2% faster
Melbourne24 daysNo change43% faster21 daysNo change19% faster
Brisbane12 days5% faster31% faster14 days6% faster2% faster
Perth19 days4% slower12% faster16 days3% slower16% faster
Adelaide14 days1% faster28% faster17 days24% slower1% faster
Hobart17 days19% slower1% slower20 days16% slower7% faster
Darwin18 days1% slower2% faster20 days16% slower20% slower
Canberra19 days13% slower8% slower20 days27% slower18% slower
Source: Rent.com.au 2022 property leasing data
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