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Key takeaways
Australia is in an unprecedented rental crisis and there is no end in sight.
Rentals are growing at double digit rates and vacancy rates are at historic lows.
However some markets are strongly outperforming others as the tables below show
We’re suffering an unprecedented rental crisis with no end in sight.
Capital city rental markets have continued to report higher rents and fewer vacancies generally over December, ending 2023 with more bad news for tenants.
Adelaide was the top monthly performer with weekly house rent increasing sharply by 4.3%, followed by Perth and Melbourne each up 3.5%, Hobart up 1.8%, and Brisbane higher by 1.7%.
Canberra house rents were steady over the month with Sydney down 1.7% and Darwin falling by 2.1%.
The Sydney housing market continues to record the highest weekly asking house rents at $760 per week with Hobart still the most affordable, but higher again at $560 per week.
Most capitals continue to report sharp annual increases in house rents, with Perth up 18.2%, Melbourne higher by 18.0%, Adelaide up 14.3%, Sydney higher by 13.9% and Brisbane up 8.2%.
Canberra annual house rents however have now fallen by 4.2% with Darwin down 2.1% and Hobart falling by 1.3% over the year.
Following rises over the previous month, house vacancy rates were lower across the board over December with the exception of Canberra where rates were steady.
Median Weekly Asking Rents December 2023 – HOUSES
| City | Rent | Month | Year | Vacancy Rate | Change |
|---|---|---|---|---|---|
| Sydney | $760 | -1.7% | 13.9% | 0.8% | ↓ |
| Melbourne | $590 | 3.5% | 18.0% | 0.6% | ↓ |
| Brisbane | $610 | 1.7% | 8.2% | 0.6% | ↓ |
| Adelaide | $600 | 4.3% | 14.3% | 0.3% | ↓ |
| Perth | $650 | 3.5% | 18.2% | 0.3% | ↓ |
| Hobart | $560 | 1.8% | -1.3% | 0.5% | ↓ |
| Darwin | $683 | -2.1% | -2.1% | 0.7% | ↓ |
| Canberra | $680 | 0.0% | -4.2% | 1.0% | ↔ |
The unit rental market
Unit rents were also generally higher over December with Adelaide the top performer rising sharply by 4.4% followed by Sydney up 2.7% with Hobart higher by 1.5%, Darwin up 0.9% Brisbane up 0.8%, and Perth where unit rents increased by 0.3% over December.
Melbourne rents were steady again, however Canberra unit rents fell 2.0%.
Brisbane, Sydney, Melbourne, Perth, and Adelaide annual unit rents remain sharply higher – up by 26.0%, 25.0%, 22.2%, 16.0%, and 13.1% respectively.
Annual unit rents however are 6.8% lower in Hobart and down 0.9% in Canberra.
Sydney remains the clear leader for weekly unit rents still at $750, with Hobart still the most affordable at $460 per week.
Monthly unit vacancy rates, similar to houses, were lower in all capitals over December compared to the previous month.
Median Weekly Asking Rents December 2023 – UNITS
| City | Rent | Month | Year | Vacancy Rate | Change |
|---|---|---|---|---|---|
| Sydney | $750 | 2.7% | 25.0% | 1.0% | ↓ |
| Melbourne | $550 | 0.0% | 22.2% | 1.4% | ↓ |
| Brisbane | $630 | 0.8% | 26.0% | 0.9% | ↓ |
| Adelaide | $475 | 4.4% | 13.1% | 0.4% | ↓ |
| Perth | $580 | 0.3% | 16.0% | 0.3% | ↓ |
| Hobart | $460 | 1.5% | -6.8% | 0.8% | ↓ |
| Darwin | $555 | 0.9% | 0.9% | 1.9% | ↓ |
| Canberra | $550 | -2.0% | -0.9% | 1.5% | ↓ |
Rental markets remain generally tight in most capitals for both houses and units, with no relief in sight for tenants who clearly remain under siege from relentless rent increases.
Recently announced government policy initiatives designed to increase rental supply are unlikely to significantly impact markets – particularly in the short to medium term.
Policy considerations should be directed to providing incentives to private sector investors that currently provide a significant proportion of Australia’s housing.
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