First home buyers responsible for rental rate ease
Rents have shown little growth over the June quarter with the median weekly advertised rents for houses recording no change, and median rents for units increasing by just 1.4 per cent.
New statistics from RP Data found that rental rates increased by 2.9 per cent over the last 12 months which is well below the annual average rate of growth of around 7 per cent for houses, and almost 8 per cent for units over the last five years.
The company’s research analyst Cameron Kusher said the slowdown in the rate of rental growth was commensurate with the RBA’s aggressive cuts to official interest rates as the GFC hit and the introduction of the first home owner’s grant boost.
“Both initiatives, coupled with softening property values during 2008 and consistent growth in rental rates during recent years, resulted in a significant boost to affordability for first time buyers. As a result during 2009, first home buyer activity was at its highest level on record, with first time buyers generally coming from the rental market it’s no surprise to see that the rate of rental growth has slowed so markedly,” Mr Kusher said.