Renters across Australia are copping a flogging on the hip pocket, with rents skyrocketing at rates not seen since the Global Financial Crisis (GFC), according to fresh analysis from Money.com.au.
The data shows rents have jumped a whopping 14.2% over the past two years—more than double the overall inflation rate of 6.6%. This includes a 7.3% rise in 2023, followed by another 6.4% increase in 2024.
The last time Aussies faced such steep consecutive rent hikes was during the 2007-2008 GFC period. Based on current trends, experts reckon rents could climb another 18% by 2030, leaving many tenants in the lurch.
“The general rate of inflation is easing and back within the RBA’s target range, which is good news for homeowners desperate for more rate relief,” said Money.com.au’s property expert Mansour Soltani. “But rents, as they relate to overall inflation, keep rising at a faster rate.”
Perth has copped the worst of it, with a staggering 19.9% increase over the two-year period. Brisbane (15.8%) and Sydney (15.4%) follow closely, also exceeding the national average.
Melbourne saw a 12.7% rise, followed by Adelaide at 12.2%, Darwin at 7.3%, and Canberra at 3%. Only Hobart bucked the trend, recording a 1.5% decrease in rents.
The housing squeeze has nearly half of all renters considering a big move. The Money.com.au survey revealed 47% of tenants would relocate to a different suburb or city to find cheaper digs, with 14% already actively looking to move to more affordable areas.
Young Aussies are feeling the pinch most acutely, with 17% of Gen Z renters currently hunting for cheaper accommodation, followed by 15% of Gen X.
Experts warn this rental crisis could be more prolonged than previous downturns. With population growth, record-low vacancy rates in capital cities, and limited housing supply, renters might need to brace themselves for a tough few years ahead.
“The last time we saw rent rises like this was during the GFC, and back then, it took years for the market to stabilise,” noted Soltani. “If that’s anything to go by, we could be in for a long stretch of above-average rent growth.”
With the RBA’s inflation target now being met for most consumer goods, this divergence between general inflation and soaring rental costs highlights a growing inequality between property owners and renters in Australia’s already strained housing market.
How could continued rent increases impact the housing market? Share your insights below.
