Reasonably priced leases in Australia hit report lows

Reasonably priced rental properties have gotten more and more scarce throughout Australia, with the share of leases accessible for underneath $400 per week dropping considerably over the previous yr. New knowledge from PropTrack reveals that in April, solely 10.4% of rental properties nationwide have been listed for lower than $400 per week, in comparison with 15.5% in April 2023 and 43.2% firstly of the pandemic.

In capital cities, the scenario is extra dire. Simply 5.9% of leases in these areas are under the $400-a-week mark, down from 10.6% a yr in the past. Sydney has now seen solely 3.8% of its rental properties now costing lower than $400 per week, declining from 22.7% in March 2020.

Melbourne’s rental market has additionally tightened, with simply 7% of leases underneath $400, in comparison with 38.7% at first of the pandemic. Brisbane follows an analogous pattern, with the share of inexpensive leases dropping from 49.2% in March 2020 to simply 7.8% in April 2024.

Adelaide and Perth have skilled substantial decreases as properly. In Adelaide, 9.5% of leases are underneath $400 per week, down from 59.0% in March 2020. Perth has 5.6% of its leases underneath this value, in comparison with 61.5% firstly of the pandemic.

Hobart and Darwin have barely increased shares of inexpensive leases at 10.9% and 10.7%, respectively. Nonetheless, each cities have additionally seen important decreases over the previous few years.

The Australian Capital Territory has the smallest share of inexpensive leases among the many capitals, with simply 2.1% of properties listed underneath $400 per week.

The scenario is just not significantly better in regional areas. The share of leases underneath $400 per week in regional New South Wales has dropped to 21.5% from 55.6% in March 2020. In regional Victoria, 28.8% of leases at the moment are underneath $400, down from 73.4%. Regional Western Australia and Queensland additionally report important drops, with solely 14.8% and 15.8% of leases underneath $400, respectively.

“Close to record-low emptiness charges, reflecting sturdy demand and restricted new provide, has created exceptionally difficult circumstances for renters. That is notably problematic for decrease revenue households for whom virtually no rental properties are inexpensive, highlighting the crucial want for a rise within the provide of housing,” stated Paul Ryan (pictured), senior economist at PropTrack.

Ryan additionally emphasised that with out significant motion to extend the availability of rental housing, the pattern of lowering inexpensive leases is predicted to proceed, exacerbating the monetary pressure on many Australian renters.

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