New research has revealed that property rents are expected to rise to $ 5,200 in Australia next year.
The rental crisis is showing no signs of easing, with vacancy rates falling to their lowest level nationwide since April 2006.
Rental prices in the capital rose 11% in the 12 months to March, while regional areas are facing year-on-year growth of 13.1%.
Rental prices will skyrocket across the country (domain)
Data released by buyer agency InvestorKit analyzed 300 regions in Australia to find out where rents are likely to rise between $ 2,600 and $ 5,200 over the next 12 to 24 months.
That’s an increase of $ 100 a week.
The top 20 rental areas in the country include Brisbane, Adelaide, Perth, Hobart, Canberra, Devonport, Burnie-Ulverstone, Nerang, Bundaberg, Maryborough, Buderim, Toowoomba, Queanbeyan, Lake Macquarie – East, Kiama-Shellharbour, Wagga Wagga, Barossa, Yorke Peninsula, Warrnambool and Shepparton.
“A rental crisis is often defined by vacancy rates at one per cent or less, so it’s worrying to see this continue to get worse,” said InvestorKit founder and head of research Arjun Paliwal.
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“We are currently at 0.7 per cent, 41 per cent less than 12 months ago, when we were at 1.2 per cent.
“Most of the 20 regions selected in our report have vacancy rates below the national average, and most are even below 0.3 percent.”
Paliwal said there were multiple factors that contributed to the increased demand for a limited supply of properties.
More people were looking for self-contained housing because of the tendency to work from home, while higher housing prices forced more people to stay as tenants for longer.
Paliwal also noted that more Generation Y Australians have moved out of family homes, growing regional populations and a drop in real estate investor activity.
The full report can be viewed here.