The share of total properties listed for rent below $400 per week on realestate.com.au has fallen to a new low, almost halving to just 16.2% in April, from 30.2% the prior year, according to the latest PropTrack Market Insight Report.
“The nation’s rental market is in dire straits, with little sign of meaningful reprieve on the horizon,” said Eleanor Creagh (pictured above), PropTrack senior economist. “Advertised rents are recording strong price increases and vacancies are at historic lows amid a shortage of rental supply.”
All capital cities saw the share of total rental listings under $400/week drop to a record low, except Hobart and Darwin.
Over the past year, the share of total rental listings under $400 per week halved in Sydney, Melbourne, Brisbane, Perth, Hobart, Darwin, the ACT, and regional WA.
“In April 2023, the ACT held the smallest share of rentals priced under $400 per week at just 1.8%.
Meanwhile, Perth has seen its share fall the most, slipping 51.2 ppts or 86% since March 2020,” Creagh said.
Of capital city rental listings, only 11.9% were under $400/week in April, falling from 58% the prior year. In regional areas, 26.6% of rental dwellings were under the same price point.
“Pressure has shifted from regional areas to the capital cities – particularly in inner-city areas – as demand from overseas migration has increased,” Creagh said.
The share of units for rent registered the strongest decline, plummeting to 19.8% in April from 35.6% a year ago. The share of houses is smaller, sitting at just 12.6%.
Posting the lowest share were Sydney, the ACT, Darwin, Hobart, and Perth, with less than 9% of listings in each city under $400 per week.
“Strong migration, low vacancy rates, and limited new supply mean tough conditions for renters are likely to remain, with the share of $400-per-week rentals set to stay low,” Creagh said.
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