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Rents skyrocket as landlords force renters to compete

Australian currency fanned out and an aerial view of property in Sydney, mostly apartment blocks to represent rent prices.
Rents are surging across the country with capital cities seeing prices surge the most. (Source: Getty)

Renters are doing it tough with skyrocketing prices that are not expected to slow down anytime soon.

Rents are surging at record rates, especially in the major cities, according to a new Proptrack report.

Asking rents lifted 4.3 per cent in the September quarter and 10.3 per cent year on year - the fastest increase ever recorded.

The high prices are mostly due to a lack of available homes, which has forced renters to compete, the report said.

And the crunch shows no sign of easing, particularly in the major urban centres.

"Capital cities are expected to see the lion's share of growth as demand and subsequent rental price growth softens in the regions," the report said.

"With the supply of rental stock remaining extremely tight and migration to Australia lifting, we anticipate rents to continue to rise over the coming quarters."

Capital city rents drove most of the growth, lifting by 3.2 per cent for the quarter and 8.8 per cent in the year to September.

Unit rents in Sydney and Melbourne grew the most, which followed a drop-off in demand for inner-city apartments during COVID as people opted for more space.

Regional rents remained unchanged from the June quarter, but were still up 12.5 per cent year-on-year.

The national weekly median rent for houses is $500 and for units is $450.

Cost of living crisis

Skyrocketing rents are just one element in the struggle many Australians are now facing around the rising cost of living.

The cost of living surged with official inflation data hitting 7 per cent in the year to July and 6.8 per cent to August.

Construction costs, petrol and food were the main drivers of the increase.

The cost of building a new home rose 20.7 per cent, petrol prices were up 15 per cent and the cost of food and non-alcoholic beverages was up 9.3 per cent.

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