Trade-offs renters are making to get a home
Written by admin on July 23, 2024
Rents across the country are up nearly 10 per cent in the past year, though there are some signs the housing crisis is easing for tenants.
Property behemoth REA Group’s quarterly PropTrack report shows the national rental vacancy rate eased this quarter, gaining 0.3 per cent to 1.4 per cent
Just over one per cent of houses up for rent are vacant, and about two per cent of units are vacant.
Inquiries about rentals in the capital cities fell about 10 per cent to 23 per listing for June, compared to last year. Regional rentals are hot property though, with inquiries spiking 21 per cent to 19 per listing.
Rent stayed level at $600 per week for the past three months, though it has gone up $50 (9.1 per cent) in the past year.
The number of rental listings available on REA Group’s huge network of sites this past month were at the lowest level for June since 2010.
PropTrack economic research director Cameron Kusher said while some indicators suggested the situation was getting easier for tenants, such as increased vacancy rates, the cost of living was actually driving renters to make sacrifices.
“Some of these trade-offs may include renting smaller properties, renting in less desirable locations where rental costs are cheaper or sharing rental accommodation with other tenants,” he said.
“The supply of homes available for renters still consistently trails the demand for rentals.
“This imbalance (is) being persistently exacerbated by limited new housing construction and a heightened number of investors exiting the market in recent years with the rebound in investor purchasing only being witnessed over the past year.”
A sign of hope for anyone who does not own a home is more loans have been given to first homebuyers over the year to May, up 6.2 per cent.
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But first homebuyer loans are being outpaced by investor loans.
The number of loans to investors increased 7.9 per cent annually.
“Increased lending activity to first home buyers has seen renters with the means exiting the market to purchase, while increased lending to investors will also likely alleviate some rental pressures,” the research director said.
