The 20 Australian suburbs where rent rises are imminent
Rental affordability has become a major issue for Australians over the past two years, and a new report suggests that it will only get worse for tenants residing in a number of Australian suburbs.
The report from HOOD.ai outlines the 20 Australian suburbs where tenants can expect a likely rent hike at their next review, compounding the already large financial strain many are currently experiencing.
All suburbs included in the report have seen their rents increase by at least 33 per cent over the past 12 months, far greater than the national average of 9 per cent. Additionally, vacancy rates in all these suburbs are below 1 per cent, and in some instances, they sit at 0 per cent.
It should be noted that a 0 per cent vacancy rate does not mean the suburb has no available rental stock. Rather, it means that all listed rental properties are being filled within 21 days, as a property is officially declared vacant once it has been on the market for 21 or more days.
The suburbs are spread across five states and territories. Eight are in NSW; Queensland and Western Australia boast six and four, respectively, while Victoria and Northern Territory have one each.
Further breakdown of the suburbs indicates that 17 of the 20 are in regional locations, with 13 being housing markets and seven unit markets included in the report.
Units in the town of Bogangar, on the northern NSW coast, recorded a 52.9 per cent increase in median rents in the 12 months leading to May 2022. This represents the largest median rent increase among the listed unit markets. Nearby Hastings Point recorded a 4.4 per cent decrease in vacancy rates, representing the largest decline among all the reported unit markets.
The situation isn’t much different for house rental prices, with Queensland’s Burrum Heads reporting the largest increase to median weekly rents – having skyrocketed by 51.5 per cent in the 12-month period between June 2021 and May 2022.
When it comes to rental house vacancy rates, the town of Brunswick Heads has seen the greatest decline, with home vacancy rates declining by 2.5 per cent in the 12 months to May 2022.
HOOD.ai founder and chief executive Tommy Fraser said that as vacancy rates continue to fall, upwards rental pressures would make it increasingly harder for Australians to find a place to live.
“Traditionally, when renters get priced out of an area, they tend to shift to a cheaper suburb nearby, but that’s become increasingly hard in the current market, which is forcing tenants to move even further in search of affordable accommodation.
“If you live in any of the suburbs mentioned in this report, take note, because there’s a strong chance your landlord will increase your rent at the next rental review,” Mr Fraser said.
The top 20 suburbs where rents are expected to rise are as follows:
- Bogangar, Tweed Valley, NSW (Units)
May 2021: $425 (Vacancy rate: 1.4 per cent)
May 2022: $650 (Vacancy rate: 0.5 per cent)
Rents have increased by 52.9 per cent
- Burrum Heads, Maryborough, Qld (Houses)
May 2021: $330 (Vacancy rate: 1.9 per cent)
May 2022: $500 (Vacancy rate: 0.9 per cent)
Rents have increased by 51.5 per cent
- Avoca, Bundaberg, Qld (Units)
May 2021: $220 (Vacancy rate: 0.8 per cent)
May 2022: $330 (Vacancy rate: 0.4 per cent)
Rents have risen by 50 per cent
- Hastings Point, Tweed Valley, NSW (Units)
May 2021: $440 (Vacancy rate: 4.4 per cent)
May 2022: $650 (Vacancy rate: 0 per cent)
Rents have risen by 47.7 per cent
- Paradise Point, Gold Coast North, Qld (Houses)
May 2021: $505 (Vacancy rate: 0.9 per cent)
May 2022: $745 (Vacancy rate: 0.7 per cent)
Rents have increased by 47.5 per cent
- Leeming, Melville, WA (Units)
May 2021: $310 (Vacancy rate: 1.7 per cent)
May 2022: $450 (Vacancy rate: 0.4 per cent)
Rents have risen by 45.2 per cent
- Tarrawanna, Wollongong, NSW (Houses)
May 2021: $520 (Vacancy rate: 1.5 per cent)
May 2022: $750 (Vacancy rate: 0 per cent)
Rents have increased by 44.2 per cent
- Colo Vale, Southern Highlands, NSW (Houses)
May 2021: $420 (Vacancy rate: 1.4 per cent)
May 2022: $600 (Vacancy rate: 0 per cent)
Rent increase: 42.9 per cent
- Brunswick Heads, Richmond Valley, NSW (House)
May 2021: $560 (Vacancy rate: 3.1 per cent)
May 2022: $795 (Vacancy rate: 0.6 per cent)
Rent increase: 42.9 per cent
- Howard Springs, Litchfield, NT (Houses)
May 2021: $490 (Vacancy rate: 2.2 per cent)
May 2022: $695 (Vacancy rate: 0 per cent)
Rents have increased by 41.8 per cent
- Beechboro, Swan, WA (Units)
May 2021: $270 (Vacancy rate: 3.2 per cent)
May 2022: $380 (Vacancy rate: 0.4 per cent)
Rents have risen by 40.7 per cent
- Cooma, Snowy Mountains, NSW (Units)
May 2021: $235 (Vacancy rate: 1 per cent)
May 2022: $330 (Vacancy rate: 0.6 per cent)
Rent increase: 40.4 per cent
- Kambalda West, Goldfields, WA (Houses)
May 2021: $200 (Vacancy rate: 2.4 per cent)
May 2022: $280 (Vacancy rate: 0.6 per cent)
Rents have increased by 40 per cent
- Sussex Inlet, Shoalhaven, NSW (Units)
May 2021: $300 (Vacancy rate: 1.2 per cent)
May 2022: $415 (Vacancy rate: 0.6 per cent)
Rents have risen by 38.3 per cent
- Chelmer, Indooroopilly, Qld (Houses)
May 2021: $500 (Vacancy rate: 1.5 per cent)
May 2022: $685 (Vacancy rate: 0.7 per cent)
Rent increase: 37 per cent
- Kahibah, Lake Macquarie, NSW (Houses)
May 2021: $440 (Vacancy rate: 0.7 per cent)
May 2022: $600 (Vacancy rate: 0 per cent)
Rents have increased by 36.4 per cent
- Rochester, Campaspe, Vic (Houses)
May 2021: $280 (Vacancy rate: 1.9 per cent)
May 2022: $380 (Vacancy rate: 0 per cent)
Rents have risen by 35.7 per cent
- Chuwar, Inner Ipswich, Qld (Houses)
May 2021: $320 (Vacancy rate: 1.6 per cent)
May 2022: $430 (Vacancy rate: 0 per cent)
Rent increase: 34.4 per cent
- Quindalup, Margaret River, WA (Houses)
May 2021: $500 (Vacancy rate: 2.3 per cent)
May 2022: $670 (Vacancy rate: 0 per cent)
Rents have risen by 34 per cent
- Pomona, Noosa, Qld (House)
May 2021: $450 (Vacancy rate: 1.3 per cent)
May 2022: $600 (Vacancy rate: 0 per cent)
Rents have increased by 33.3 per cent
More from this writer:
-
Expert calls on government to review construction productivity, not major projects
-
RBA delivers hotly anticipated November cash rate call
-
Greens threaten 650% rate increase on Brisbane landlords
-
Dispelling some migration housing market myths
-
ACT developer under fire for multiple business failures
-
The Block Finale: Tom Panos to tell all
-
Australia dominates in the global luxury market’s top annual risers