- Experts believe rental costs will rise even further due to immigration and tightening housing stock
- International students and backpackers in particular to influence the demand
- $548 is the median asking rental prices for all houses in Australia
In another blow to renters nationally, a group of economic experts believe rent prices will rise once borders fully reopen over 2022.
In their monthly RBA survey, Finder found that 73% of experts believe the cost of renting will increase significantly due to tightening housing supply.
Finder’s head of consumer research Graham Cooke has suggested that renters embrace for higher housing costs.
“The pandemic turned the rental market on its head in some areas, with vacancy rates increasing in major capital cities like Sydney and Melbourne,” he said.
“As international students and backpackers return to our shores, we’re going to see demand quickly flow back.”
SQM Research data shows that while rents nationally remained relatively steady over the last decade, after an initial dip in early 2020 when the pandemic began, weekly asking rents have risen sharply – especially for homes.
For example, weekly rents were $441 for all homes nationally in April 2020. As of December 2021, this has increased to $548. Effectively, half of those renting houses nationally are spending an extra $5,000 per year than they were 20 months ago.
While the Sydney market saw a large dip – declining to a low of $611 for houses in October 2020, this has since risen to $732.
Melbournians, however, are witnessing rental prices cheaper than they were just before the pandemic. Asking weekly rental prices for houses in February 2020 was $554. This has declined to a low of $505 in May 2021, before rising since to $528 as of this month.
Those living in other dwellings, such as units and apartments, have had a much larger win.
After peaking at $425 in February 2020, weekly rental unit prices have continued to decline, reaching a low of $361 during June 2021 before rising to $372 as of this month.