TRANSCRIPT
Persistent demand and dwindling supply: that's the tough equation facing renters as the number of listings available continue to tighten.
PropTrack Director of Economic Research Cameron Kusher, of the REA-Group, says it's a tough combination for people trying to navigate the rental market.
"Unfortunately what is means is bad news for renters, but we do have this situation where we have excess demand for rental properties and we've got a very low supply of rental stock and that means that people who own rental properties - landlords - have got scope to to ask more for rents for those properties."
The real estate company's analysis of listings on its website has found the national median rent continues to rise.
It reached $550 per week in the September quarter, up 14.6 per cent on the same time last year.
Rental listings have plummeted 7.1 per cent over the same period.
Mr Kusher says they have now fallen to a record low.
"The outlook is that rents are going to continue to rise nationally, that's largely going to be driven by the major capital cities. And it's because we still have this mismatch between demand and supply in the market. The longer term solution is we need to build a lot more housing but that takes time."
The challenge of rising costs is already being felt.
In Sydney, the median rental price is up 18.2 per cent year-on-year and increases of more than ten per cent are also being experienced in Melbourne, Adelaide, Perth and Brisbane.
But the impact is not as severe in other capital cities.
LJ Hooker's Marina Maklhin says real estate agents are continuing to see surging demand for rentals.
"Our vacancy rates are the lowest they've ever been and it is a challenging time out there's nothing to rent - people are really searching and there is nothing for them to find. It's a combined series of events that's happened but it's led to a situation where rental opportunities are very low.”
Some regional areas are also feeling the pinch, with the median rent up more than ten per cent outside the major cities in WA and South Australia year on year.
Notable increases have also been seen in Queensland and Victoria.
But there's a lesser impact in Tasmania, New South Wales and the Northern Territory.
Ms Maklhin says a range of factors have contributed to the rental conditions.
"We haven't got new construction. The rental figures keep going up. Despite interest rates increasing we've got a lot of young home buyers taking advantage of these stamp duty allowances buying typical rental stock - and it's just this combination that's seen vacancy rates the lowest they've ever been - we've also got a big influx of people moving back to Australia after COVID also needing somewhere to live."
The search for a place to live has also led to some becoming victims of exploitation.
International students reporting being targeted by property scammers.
One speaking to SBS News has requested their name be withheld.
"This is the first time I've been scammed. This is also the first time I've rented. I asked my Dad for advice, but he told me that I was now an adult and could start making decisions for myself. I was duped upon making that first decision."
The student was allegedly exposed to fraud after struggling to find accommodation through traditional real estate websites.
"We were using all of them. We also asked the locals in Australia to help us view the properties. But we kept getting knocked back. It's particularly difficult to apply. We only have a 1 in 10 chance of success on websites like realestate.com. "
Rising rents are just another concern for the many already struggling with the rising cost of living.
