The number of affordable rents has fallen to a new low nationally.
Last month, according to the latest data from Proptrack, the share of rental properties listed on realestate.com.au for less than $400 a week almost halved year-on-year to just 16.2 per cent, the lowest share on record.
Just 11.9 per cent of capital city rental listings were under $400 a week last month while in regional areas, 26.6 per cent of rental homes were under the same price point.
Share of rental listings below $400 a week: April 2023
The share of units for rent declined fastest, falling 35.6 per cent a year ago to 19.8 per cent in April. The share of houses is smaller, sitting at just 12.6 per cent.
Sydney, the ACT, Darwin, Hobart and Perth have the lowest share, with less than 9 per cent of listings in each city under the price point.
Of these, Perth’s share fell the most, slipping 86 per cent since March, 2020 to 8.17 per cent, while the ACT held the smallest share of affordable rentals at just 1.8 per cent.
For the regions, Queensland’s 19.32 per cent was the lowest while South Australia’s 71.49 per cent the highest.
Strong demand, bolstered by rising immigration, is outstripping the supply of available rentals, according to Proptrack.
“As a result, the cost of renting is climbing and the share of rental listings below $400 is set to remain low,” a spokesperson said.
“Advertised rents are recording strong price increases and vacancies are at historic lows amid a shortage of rental supply.
“The nation’s rental market is in dire straits, with little sign of meaningful reprieve on the horizon.”
Article source: www.theurbandeveloper.com