According to recent research by RP Data, Australian capital city property rents are increasing even faster than the property prices.
Housing shortage is the main reason for this increase. Rentals will continue to increase even further unless sufficient residential housing becomes available to meet the growing demand.
Darwin and Melbourne experienced the most significant increases in rents, with the average rental rate for houses growing by 10 and 7.5 per cent respectively.
There does not appear to be a solution to this in the near future.
“With investors and first home buyers being hesitant to take on home loans and make property purchases, there is little reason to expect that the housing shortages prevailing will ease and rentals stabilize or come down.
It is worth noting that rental growth has been sluggish for quite some time.