This result marks the lowest annual rental increase in the 12 months leading up to March 2021, when rent prices rose by 3.6%. While this figure remains high compared to the pre-pandemic average, it confirms that the national rental market has well and truly passed the peak of its recent boom.<\/p>\n\n\n\n
According to CoreLogic economist Kaytlin Ezzy, several factors have contributed to this trend, with affordability being a primary driver.<\/p>\n\n\n\n
She noted that since the onset of the COVID-19 pandemic, the national median rent has surged by 36.1%, which translates to an increase of $171 per week, or approximately $8,884 per year. As of September 2024, the average renter was spending 33.0% of their annual pre-tax income on rent.<\/p>\n\n\n\n
Beyond affordability constraints, Ms. Ezzy explained that shifts in supply and demand have directly impacted the pace of rental growth.<\/p>\n\n\n\n
\u201cA decrease in net overseas migration is a key factor reducing rental demand, with net migration levels expected to return to around pre-COVID levels by the 2026\/27 financial year,\u201d she stated.<\/p>\n\n\n\n
\u201cOn the supply side, the value of new investment loans increased by 26.3% in the year to September 2024. This rise in investor activity has subsequently boosted the net supply of rental properties.\u201d<\/p>\n\n\n\n
This combination of increasing supply and easing demand has helped improve vacancy rates, which shifted from a low of 1.4% in November 2023 to 1.9% by the end of 2024.<\/p>\n\n\n\n
Across the capital cities, most recorded a slowdown in annual rental growth. Sydney and Melbourne saw their growth rates taper from 9.9% and 11.0% respectively in 2023 to just 3.0% and 4.1% in 2024.<\/p>\n\n\n\n
Despite a slight quarterly decrease in rents, Sydney remains the most expensive capital for renters<\/strong>, with a median weekly rent of $773. Stronger rental growth helped Perth<\/strong> claim the second spot at $695\/week, overtaking Canberra<\/strong> at $667\/week.<\/p>\n\n\n\n A couple of cities that saw positive annual rental growth were Hobart<\/strong> (6.0%) and Canberra<\/strong> (2.6%).<\/p>\n\n\n\n Hobart<\/strong> continues to be the most affordable capital city for renters and is the only capital with a median weekly rent below $600, at $554\/week. Melbourne<\/strong> is the second most affordable at $604\/week, followed by Adelaide<\/strong> at $611\/week.<\/p>\n\n\n\n Source: CoreLogic. 2024. National rental market has \u201cwell and truly passed the peak of the recent rental boom\u201d<\/em><\/p>\n\n\n\n QUEENSLAND FIRST-HOME BUYERS TO BENEFIT FROM NEW STAMP DUTY WAIVER ON NEW BUILDS<\/strong><\/p>\n\n\n\n Great news for aspiring first-home buyers in Queensland (QLD): The State Government has passed a policy to waive stamp duty on new properties, significantly reducing financial pressure and making it easier to achieve the dream of homeownership.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Australia’s rental market is officially cooling down after a period of record-breaking growth. The year 2024 saw a<\/p>\n","protected":false},"author":1,"featured_media":1341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,5],"tags":[],"class_list":["post-1136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-newsbeat"],"_links":{"self":[{"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=1136"}],"version-history":[{"count":3,"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1136\/revisions"}],"predecessor-version":[{"id":1342,"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1136\/revisions\/1342"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/media\/1341"}],"wp:attachment":[{"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=1136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=1136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/northernsuburbsrealty.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=1136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\nRELATED NEWS<\/strong><\/h3>\n\n\n\n