Rents in Australia have climbed to unprecedented levels, reaching a national average of $627, prompting renters to seek housing further away from city centers. This surge began in 2024, with rental prices now 8.5% higher than at the same time last year, as per CoreLogic's recent data analysis. Eliza Owen, CoreLogic's head of research, highlighted that rents are not only increasing rapidly but also at a quicker pace compared to the end of the previous year.
The rental market's growth is most noticeable in regional Australia and the outer suburban regions of major cities, according to Owen. In the city of Perth, rental rates saw the highest annual increase amongst capital cities in the last year, soaring by almost 60%. This surge brought the median weekly rent in Perth to $669, marking a 13.6% year-on-year increase. Western Australia, as a whole, is experiencing a shift in migration patterns, with a positive net interstate migration and robust overseas migration driving up demand for rentals.
Employment opportunities, particularly in the mining sector, are also playing a significant role in the rental market's dynamism, as stated by Owen. Locations like Serpentine-Jarrahdale, Belmont-Victoria Park, Armadale, and Mundaring witnessed the highest rental growth percentages. In Melbourne, the second-highest annual rent increase amongst state capitals was observed, with growth particularly notable in suburbs like Dandenong, Tullamarine-Broadmeadows, and Whittlesea-Wallan.
Adelaide's median rent stands at $580, narrowly below Melbourne's $589, with suburbs like Salisbury, Playford, and Port Adelaide experiencing the most significant growth. Sydney saw an overall 9% increase in median rents, with suburbs like Fairfield, Blacktown, and Campbelltown leading in growth percentage. Meanwhile, Hobart was the only capital city to record a decrease in rental prices, dropping by 0.2% annually. In regional Australia, rental growth has surged, especially in areas within 30-40 kilometers of city centers like Campbelltown in Sydney, Casey North in Melbourne, and Jimboomba in Brisbane.