Top 20 suburbs where rents are set to rise

New research has revealed top 20 suburbs where rents are set to rise, with regional areas dominating the charts
NSW also a standout, with 8 suburbs listed and Bogangar taking top spot
Rankings highlight issue of rental affordability with rents in all 20 suburbs rising by at least 33% in past year

New research commissioned by home relocation platform HOOD.ai has revealed the top 20 Australian suburbs where rents are set to rise.

The quarterly Tenant Report analysed the rents and vacancy rates of every Australian suburb in the last 12 months, before filtering the data by certain criteria to establish the ranking.

The result was a list of 20 suburbs where landlords had the upper hand over their tenants, with that power increasing over the past year.

Of the suburbs that made the exclusive list, all saw rent increases of at least 33% in the past 12 months.

Power imbalance tips towards landlords

The report contained data from property research consultancy Suburbtrends, and aimed to only identify suburbs with legitimate and tightening rental markets.

Suburbs were excluded from consideration if they met the following criteria:

fewer than 500 total properties
rentals comprised of less than 10% of total stock
vacancy rate above 1%
vacancy rate had increased in the past year
median weekly rent rent had not increased by at least 10% in their SA3
during the past year

HOOD.ai founder and Ceo Tommy Fraser said the final ranking highlights the issue of rental affordability.

Top 20 Australian suburbs where rents are set to rise

Rank	State	Suburb	Postcode	Property Type	Median Weekly Rent	Annual Rental Increase	Vacancy Rate
1	NSW	Bogangar	2488	Unit	$650	52.9%	0.5%
2	QLD	Burrum Heads	4659	House	$500	51.5%	0.9%
3	QLD	Avoca	4670	Unit	$330	50.0%	0.4%
4	NSW	Hastings Point	2489	Unit	$650	47.7%	0.0%
5	QLD	Paradise Point	4216	House	$745	47.5%	0.7%
6	WA	Leeming	6149	Unit	$450	45.2%	0.4%
7	NSW	Tarrawanna	2518	House	$750	44.2%	0.0%
8	NSW	Colo Vale	2575	House	$600	42.9%	0.0%
9	NSW	Brunswick Heads	2483	House	$795	42.0%	0.6%
10	NT	Howard Springs	835	House	$695	41.8%	0.0%
11	WA	Beechboro	6063	Unit	$380	40.7%	0.4%
12	NSW	Cooma	2630	Unit	$330	40.4%	0.6%
13	WA	Kambalda West	6442	House	$280	40.0%	0.6%
14	NSW	Sussex Inlet	2540	Unit	$415	38.3%	0.6%
15	QLD	Chelmer	4068	House	$685	37.0%	0.7%
16	NSW	Kahibah	2290	House	$600	36.4%	0.0%
17	VIC	Rochester	3561	House	$380	35.7%	0.0%
18	QLD	Chuwar	4306	House	$430	34.4%	0.0%
19	WA	Quindalup	6281	House	$670	34.0%	0.0%
20	QLD	Pomona	4568	House	$600	33.3%	0.0%

New South Wales dominated the rankings with the most suburbs of any state, and taking top position with rents in Bogangar increasing by 52.9% in the past year.

The rankings also showed a clear trend towards regional locations, with 17 of the suburbs regionally positioned while only three were in capital cities.

According to Mr Fraser, vacancy rates are low across several parts of Australia and many are still falling, placing upwards pressure on rental prices.

Tommy Fraser HOOD.ai — Tommy Fraser, HOOD.ai founder and CEO. Image supplied.

“Traditionally, when renters get priced out of an area, they tend to shift to a cheaper suburb nearby, but that’s become increasingly hard in the current market, which is forcing tenants to move even further in search of affordable accommodation.”

“If you live in any of the suburbs mentioned in this report, take note, because there’s a strong chance your landlord will increase your rent at the next rental review,” concluded Mr Fraser.