THE share of total properties listed for rent below $400 per week has nearly halved in the past year as the national rental crisis shows no sign easing.
PropTrack’s Market Insight Report found that the share of properties listed on realestate.com.au has plunged to just 17.6%. In March 2020, at the beginning of the pandemic, that share was 42.5%.
The share of listings under $400 per week has halved over the past year in Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra and regional Western Australia.
“Demand for rentals is far outstripping supply, pushing weekly rents higher and the vacancy rate lower,” said PropTrack director, economic research and report author Cameron Kusher.
“With demand for rentals intensifying, we see no reprieve for tenants in the coming months.”
CoreLogic’s data shows asking rents soared by 10.2% over 2022, and vacancy rates remain at historic lows.
According to PropTrack, the current share of total listings under $400 per week has hit its lowest level since 2018 in all capitals, except Hobart and Darwin. Only 14.6% of capital city listings are under $400 per week, while the share is 25.9% in regional areas.
Sydney, the ACT and Darwin all have the lowest share, at less than 9% each. Just 19% of all rental listings in the ACT come in under the $400 price point.
Houses have seen the strongest decline, falling from 42.5% at the start of COVID to13.6% now. Units saw a 20.4 percentage point decline over the same period.
Kusher said the fall in the availability of more affordable rentals and the surging competition for rental stock is creating challenges for those on lower incomes or government support payments as they try to source increasingly scarce rental accommodation.
A report from Anglicare found that the government’s Commonwealth Rent Assistance payment leaves one in two of its recipients in rental stress, as the supplement fails to keep up with the current rental environment.
NSW and South Australia have recently joined other states in outlawing rental bidding,the practice where a landlord or agent invites, suggests or asks prospective tenants to increase their offer of rent for a property in order to secure it.
