Rental market snapshot: November 2022

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

IN SUMMARY  📜

  • Rent.com.au’s November 2022 report shows a 0.1% lift in availability, bringing vacancy rates from 0.9% to almost 1%
  • The biggest stock improvements were seen in the ACT (up 27.2% from Oct), NSW (up 16.9%) and NT (up 10%)
  • Everybody’s Home called for all governments to bolster social housing stock to 25,000 dwellings annually.
  • The latest Rental Affordability Index (RAI) highlighted that over 40% of low-income households are now in rental stress.

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

Metro areaAPARTMENTSMonthly changeHOUSESMonthly changePRICE PER ROOMMonthly change
Sydney, NSW$5700.0%$7201.4%$3000.0%
Melbourne, VIC$440-1.5%$4801.0%$2001.5%
Brisbane, QLD$4901.0%$5851.7%$2001.0%
Perth, WA$4500.0%$5203.8%$1844.9%
Adelaide, SA$400-2.9%$5001.0%$1760.6%
Hobart, TAS$4400.0%$5501.8%$2125.7%
Darwin, NT$460-2.4%$590-1.7%$200-3.0%
Canberra, ACT$530-4.0%$6723.3%$2552.0%
National median$500-2.3%$5500.0%$2252.2%
Source: 2022 Rent.com.au property listing data

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PRICE TRENDS

What’s being talked about?

The Rental Affordability Index, released on 29 November, goes some way to show the extent of Australia’s current affordability issue. The annual report from SGS Economics and Planning and National Shelter found that renting has become less affordable in every Australian city in 2022 compared to 2021. Hobart sits at the bottom of the ladder as the least affordable city in Australia.

Perth is at its worst since 2016, and Brisbane and Hobart are the least affordable they’ve ever been. The report showed things are equally grim outside the cities. Rentals in regional Tasmania, Victoria, Queensland and New South Wales now sit at unprecedented levels of unaffordability.

It’s a tough time for renters. Those in secure leases feel on edge, bracing for a rental increase or lease termination notice, while those hunting for homes face huge viewing queues and months spent scouring the market. The reasons for the current rental squeeze are broad. Experts suggest the opening of the borders post-COVID has meant a renewed flux of students and migrants have entered the country and put extra pressure on a limited supply of rental properties.

The RAI report identified investor-friendly breaks such as the capital gains tax and negative gearing were “trapping” renters in the market, with more households on higher incomes now renting for longer. The federal government has so far brushed aside any plans to amend these taxes, instead prioritising building social housing.

Plans to build 10,000 extra affordable homes starting in mid-2024 are a good start, but in the short term, the lack of security around renting creates significant anxiety for many communities.

Looking at the data in November

So how did we fare in November 2022? Well, Brisbane, much like the rest of Australia, is suffering from a rental crisis with historically low vacancy rates leading to rising rents for apartments (up 1% month-on-month) and houses (up 1.7%). Record-low interest rates, government support and the COVID-driven rush north by renters in Sydney and Melbourne.

Demand on the Aussie rental market is likely to worsen before it gets better, especially as we approach the peak rental changeover period in December and January and international students return for the new university year. Rent.com.au’s latest data shows availability saw some improvement in November, with the number of rental properties listed up 10.4% month-on-month. The ACT recorded the most considerable increase (up 27.2%), followed by NSW (up 16.9%) and NT (up 10%).

Looking at November’s median rent data, the most affordable metro capital was again Adelaide, where apartment rents were $400 a week, down 2.9% from October. Perth recorded a noticeable increase in median house rents month-on-month, rising 5.8% to $520 a week.

WHAT WILL A ROOM IN A RENTAL COST ME? 💰

Rent.com.au’s monthly report also looks at price per room, a metric that offers an alternate outlook on the approximate cost to rent a room in a home in Australia.

Considering the annual change from October 2021, apartments have recorded a greater cost increase, up 18.1% in the last 12 months to $310 a week.

A room in a Melbourne apartment costs renters 23.9% more than a year ago, now $285 a week.

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

Metro areaAPARTMENTS% change (annual)HOUSES% change (annual)
Sydney, NSW$35016.7%$2409.10%
Melbourne, VIC$28523.9%$16210.80%
Brisbane, QLD$28017.9%$18614.30%
Perth, WA$27511.1%$16510%
Adelaide, SA$2086.8%$16612.40%
Hobart, TAS$2281.7%$1977.70%
Darwin, NT$25016.3%$1919.50%
Canberra, ACT$37515.4%$2201.50%
National median$31018.1%$18310%
Source: 2022 Rent.com.au property listing data

HOW ARE THE REGIONS FARING? 🌳

Rents across the regional markets have risen 9.1% year-on-year, the most significant of those changes seen in Western Australia (up 16.6% to $490 a week).

According to the RAI report, Australians renting in the regions are being hit the hardest of anyone.

Previously a safety net for low-income earners who couldn’t afford a home in the city, the regions have suffered under the weight of internal migration.

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Table 3: % change to regional rents in November 2022

State/TerritoryNov-22% change from Nov '21
New South Wales$5008.7%
Victoria$4006.6%
Queensland$50011.1%
Western Australia$49016.6%
South Australia$3509.3%
Tasmania$4207.0%
Northern Territory$56014.2%
Aus. Capital TerritoryN/AN/A
National median$4809.1%
Source: 2022 Rent.com.au property listing 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 24 median days to lease a property in Darwin in November was 35% slower than in October – and the most significant change to time on market for both property types across the board.

Melbourne houses matched Darwin for time to lease in November at 24 days.

The most significant change for houses annually was recorded in Canberra, leasing 33% quicker than in November 2021.

Table 4: Monthly and annual change to time on market in November 2022

Metro areaAPARTMENTSMonthly changeAnnual changeHOUSESMonthly changeAnnual change
Sydney, NSW15 days6% faster41% faster20 days3% faster1% faster
Melbourne, VIC16 days12% faster52% faster21 days4% faster12% faster
Brisbane, QLD11 days10% faster45% faster15 days8% faster2% faster
Perth, WA13 days4% faster18% faster13 days6% faster16% faster
Adelaide, SA13 days1% faster27% faster15 days6% faster1% faster
Hobart, TAS12 days11% slower10% faster16 days14% slower7% slower
Darwin, NT24 days35% slower16% slower21 days1% slower24% slower
Canberra, ACT21 days5% slower31% slower18 days16% faster33% slower
Source: 2022 Rent.com.au property listing data
Rent.com.au

Rent.com.au is Australia's largest company dedicated to renters and is owned and operated by ASX-listed Rent.com.au Limited (RNT:ASX). For over 15 years, Rent.com.au has exclusively focused on making renters' lives easier by making it easier to find a property, secure it, move in and pay rent.

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