PropTrack’s February Market Insights report has revealed the share of total properties listed for rent under $400 per week on realestate.com.au has declined to 17.6%.
Throughout 2022, the report revealed the share of houses for rent under $400 per week fell from 25.2% to 13.6%, with units also declining from 38.6% to 22.1%.
PropTrack Director of Economic Research Cameron Kusher said the share of total rental listings under $400 per week has halved over the past year across capital cities and regions such as regional Western Australia.
“The fall in availability of more affordable rentals and the surging competition for rental stock is creating challenges for those on lower incomes or government support payments as they try to source increasingly scarce rental accommodation,” Mr Kusher said.
Across the nation, the ACT currently holds the title as the capital with fewest affordable dwellings available for under $400 per week, sitting at 1.9% of listings.
The decline in the number of affordable rental listings comes as Domain’s February Rental Vacancy Rate report revealed the total vacancy rate remains at record lows of 0.8%.
Echoing the sentiments of PropTrack, Domain Chief of Research and Economics Dr Nicola Powell noted dwindling supply across all capital cities is worsening the ongoing rental crisis in many parts of the country.
“The increased demand has been fuelled by the return of international and domestic travel, overseas migration, foreign students, and the recovery of temporary visa holder numbers,” Dr Powell said.
Dr Powell detailed following the announcement from China’s Ministry of Education banning citizens from studying online at foreign universities, Chinese students have been left scrambling to secure a visa and find somewhere to live.
“Universities Australia said that this move would encourage some 40,000 Chinese students to return to Australia, which will put huge pressure on an already stretched rental market. This is already playing out as we've seen a spike in searches for rentals from China on Domain,” she said.
Rental vacancy rates - February 2023
|
Feb-22 |
Jan-23 |
Feb-23 |
|
|
National |
1.1% |
0.8% |
0.8% |
|
Combined capitals |
1.4% |
0.9% |
0.7% |
|
Combined regionals |
0.6% |
0.8% |
0.8% |
|
Sydney |
1.6% |
1.0% |
0.9% |
|
Melbourne |
2.3% |
1.0% |
0.8% |
|
Brisbane |
0.8% |
0.8% |
0.6% |
|
Perth |
0.5% |
0.3% |
0.3% |
|
Adelaide |
0.3% |
0.3% |
0.3% |
|
Hobart |
0.2% |
0.5% |
0.6% |
|
Canberra |
0.5% |
1.5% |
1.5% |
|
Darwin |
0.7% |
1.3% |
1.2% |
Source: Domain February 2023 Rental Vacancy Rate Report
Image by Rober Linder via Unsplash
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