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New data highlighted the worsening plight of renters across the country, as the share of affordable rentals nationwide reached a record low in April.
PropTrack’s latest Market Insight Report showed that strong immigration, combined with record-low vacancy rates, has seen the percentage of rentals listed for under $400 per week slide from 41.86 per cent in March 2020 to 16.2 per cent — the lowest on record.
Within a span of just one year, the proportion of rental listings priced below $400 per week has experienced a significant decline, plummeting by 30.2 per cent.
Taking a broader view, the share of affordable rental listings has more than halved since the onset of the pandemic, experiencing a significant decline of 25.7 per cent.
The proportion of affordable rentals halved in Sydney, Melbourne, Brisbane, Perth, Hobart, Darwin, the ACT and regional Western Australia over the past year, with pressure shifting from regional areas to capital cities.
Prospective tenants in the ACT are facing the most challenging conditions, with the market having the smallest share of rentals priced under $400 per week, comprising merely 1.8 percent.
Since March 2020, Perth has undergone the most pronounced decline, with its share of rentals priced under $400 per week plummeting by a staggering 86 per cent.
Interestingly, while regional areas saw larger percentage point falls in the share of listings under $400 per week throughout the pandemic, capital cities have seen larger declines in the past year, falling from 58 per cent to just 11.9 per cent in April.
PropTrack’s senior economist and report author, Eleanor Creagh, said current rental conditions are incredibly challenging for renters.
“Strong demand, bolstered by rising immigration, is outstripping the supply of available rentals,” Ms Creagh said.
“Advertised rents are recording strong price increases and vacancies are at historic lows amid a shortage of rental supply,” she added.
Over the month, national advertised rents surged 11 per cent year on year, driven by close-to-zero rental rates in the majority of capital cities.
Looking ahead, Ms Creagh described the country’s rental market as being “in dire straits, with little sign of meaningful reprieve on the horizon”.
“Strong migration, low vacancy rates and limited new supply mean tough conditions for renters are likely to remain, with the share of $400 per week rentals set to stay low,” she concluded.
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