There’s been a brief reprieve in soaring rent price growth, but will it last?
A brief reprieve in soaring rent price growth is unlikely to last, with very high demand and extremely low supply set to continue throughout the year.
The latest PropTrack Market Insight shows national rental prices steadied over the December quarter after smashing records in the three months to September.
Cameron Kusher, executive manager of economic research at PropTrack, said advertised rents across Australia were unchanged in the final quarter of 2022, sitting at $480 per week.
“The March 2022 quarter was the last time rents were unchanged,” Mr Kusher noted.
“Advertised rent prices rose by 6.7% over the 2022 calendar year, up from an increase of 4.7% during 2021.”
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 800 450"%3E%3C/svg%3E)
While price growth steadied over the December quarter, conditions remain tough for would-be tenants. Picture: Getty
Across the capital cities, dwelling rents rose 1% quarter-on-quarter in December and were 10% higher year-on-year, while regional rents were unchanged quarter-on-quarter and up 7.1% year-on-year, he said.
“Rents in the capitals have now increased at a faster annual pace than regional rents for the first time since the September 2020 quarter,” he said.
PropTrack Rental Prices, December 2022
Houses
| Region | Median rent | QoQ change | YoY change |
|---|---|---|---|
| Sydney | $630 | -3.1% | 5.0% |
| Melbourne | $460 | 0.0% | 4.5% |
| Brisbane | $530 | 0.0% | 11.6% |
| Adelaide | $480 | 0.0% | 9.1% |
| Perth | $480 | -4.0% | 6.7% |
| Hobart | $540 | 0.0% | 8.0% |
| Darwin | $600 | -3.2% | 0.0% |
| ACT | $670 | -2.9% | 7.2% |
| Capital cities | $520 | 0.0% | 8.3% |
| Rest of NSW | $500 | -3.8% | 4.2% |
| Rest of Vic. | $420 | 0.0% | 5.0% |
| Rest of Qld | $520 | 0.0% | 10.6% |
| Rest of SA | $320 | 0.0% | 6.7% |
| Rest of WA | $450 | -6.3% | 7.1% |
| Rest of Tas. | $400 | -5.9% | 2.6% |
| Rest of NT | $520 | -7.1% | -5.5% |
| Regional Areas | $470 | 0.0% | 5.6% |
| National | $500 | 0.0% | 7.5% |
Units
| Region | Median rent | QoQ change | YoY change |
|---|---|---|---|
| Sydney | $530 | 1.0% | 6.0% |
| Melbourne | $425 | 1.2% | 9.0% |
| Brisbane | $440 | 0.0% | 10.0% |
| Adelaide | $395 | 1.3% | 9.7% |
| Perth | $420 | 0.0% | 5.0% |
| Hobart | $450 | 0.0% | 7.1% |
| Darwin | $500 | 0.0% | 5.3% |
| ACT | $550 | 0.0% | 5.8% |
| Capital cities | $470 | 2.2% | 9.3% |
| Rest of NSW | $420 | 0.0% | 5.0% |
| Rest of Vic | $330 | 0.0% | 3.1% |
| Rest of QLD | $440 | -2.2% | 10.0% |
| Rest of SA | $255 | 6.3% | 13.3% |
| Rest of WA | $400 | 0.0% | 5.3% |
| Rest of Tas | $350 | 0.0% | 6.1% |
| Rest of NT | $395 | -7.6% | -1.3% |
| Regional areas | $400 | 0.0% | 5.3% |
| National | $460 | 2.2% | 9.5% |
Dwellings
| Region | Median rent | QoQ change | YoY change |
| Sydney | $560 | 1.8% | 7.7% |
| Melbourne | $450 | 2.3% | 9.8% |
| Brisbane | $490 | 0.0% | 11.4% |
| Adelaide | $450 | 0.0% | 11.8% |
| Perth | $450 | -3.2% | 4.7% |
| Hobart | $500 | 0.0% | 5.3% |
| Darwin | $550 | 0.0% | 1.9% |
| ACT | $595 | -0.8% | 6.3% |
| Capital cities | $495 | 1.0% | 10.0% |
| Rest of NSW | $480 | 0.0% | 6.7% |
| Rest of Vic | $400 | 0.0% | 5.3% |
| Rest of QLD | $485 | -1.0% | 7.8% |
| Rest of SA | $310 | 0.0% | 10.7% |
| Rest of WA | $450 | 0.0% | 12.5% |
| Rest of Tas | $390 | -2.5% | 5.4% |
| Rest of NT | $450 | -7.2% | -2.2% |
| Regional areas | $450 | 0.0% | 7.1% |
| National | $480 | 0.0% | 6.7% |
Sydney and Melbourne were the only capital cities where rents continued to soar over the December quarter, up 1.8% and 2.3% respectively, while Perth saw the largest decline, down 3.2%.
House rents were unchanged over the December 2022 quarter, but would-be tenants looking for units continue to face cost pressures, with a 2.2% price increase quarter-on-quarter.
“Over the 2022 calendar year, house rents were up 7.5% compared to a 9.5% increase in unit rents,” Mr Kusher noted.
Save time applying for rentals
Build a detailed Renter Profile once, then use it every time you apply for a place.
Tenants battling extreme conditions
A near-record surge in rent prices across Australia’s major cities has made finding an affordable home an extremely difficult prospect for many tenants.
Maiy Azize, the national spokesperson for the group Everybody’s Home, said price pressures are contributing to a rise in homelessness.
“There aren’t enough affordable homes, and millions of Australians are paying the price – including families, women fleeing domestic violence, and older people,” Ms Azize said.
“Their plight won’t end until there is action.
“To deal with the rental crisis, the Federal Government must invest in social housing. We’re calling on them to build 25,000 homes a year to end the shortfall, help thousands of people at risk of homelessness, and pull even more out of rental stress.
“At the same time, we’ll be freeing up lower-cost rentals for people who need them.”
There are few signs of recovery on the horizon, experts say. Picture: Getty
Few signs of relief on the horizon
Mr Kusher said the moderation in rent price growth will be “something to watch” in the coming months but struggling tenants hoping for an extended breather might be disappointed.
“We expect rental prices will continue to grow in the capital cities in the months ahead, although the prospects for further rent increases regionally do appear to be easing,” he said.
Analysis by the Australian Housing and Urban Research Institute found the rate of household formation has been much greater than the increase in new dwellings.
| 2016 Census | 2021 Census | % change | |
|---|---|---|---|
| Population | 23,401,881 | 25,422,789 | +8.6 |
| Households | 8,286,078 | 9,275,212 | +11.9 |
| Rented dwellings | 2,482548 | 2,842,378 | +14.5 |
| All private dwellings | 9,325,958 | 10,318,993 | +10.6 |
“At a basic level, Australia needs sufficient new housing to house the nearly one million new households formed between the 2016 and 2021 Censuses – an 11.9% increase, or an average of 197,826 households per year,” AHURI said in a report in late 2022.
“The number of new residential dwellings did not keep up with the number of new households, increasing by only 10.6%, or around 198,000 new dwellings each year.
“This number includes unoccupied dwellings, such as second homes or holiday houses, which are not available for rent or purchase by newly formed households.”
To make matters worse, international migration has resumed at a rapid pace following an abrupt pause during the Covid pandemic and associated border closures.
