Rental Crisis Deepens

The pace of property price growth may be easing, but rental growth continues to charge ahead.

REA Group’s data shows that there are fewer properties available for rent and asking rents soared in the past three months.

It says rents have risen in 57.6% of suburbs and unit rents have risen in 61% of suburbs in the three months to July.

In Melbourne, 150 unit markets and 176 house markets have chalked up rent increases of at least $1000 per year.

In Queensland, 95.6% of the house and unit markets analysed had increases in the past 12 months with some up to $150 extra per week.

REA Group economist Anne Flaherty says wages are not typically keeping up with the level of rental increases.

She says the increases are adding further pressure to household budgets.

“We often think about things in percentage terms, but when you actually look at the dollar changes, the growth is significantly more, particularly in light of the fact that the cost of everything else has gone up at the same time,” she says.