Sydney. Sydney has the highest average rent in the country, with the median increasing by more than 13% over the past year to $711 a week.
Hawaii has the highest average rent in the United States at $2,399 a month. The asking rent for a typical unit in Hawaii is even higher, with vacant units asking $2,850 for new renters. Average rents in Honolulu cost an average of $2,528.
Adelaide ($443 a week) South Australia's capital is the cheapest capital city in the country to rent a unit, with the median price hovering around $450 a week.
The report found nurses, cleaners, aged care and postal workers were among those hit hardest by the rental crisis. Queensland has become one of the least affordable states for renters. In NSW and Victoria there were no affordable regions for essential workers earning award wages.
Rental market characteristics
Median rents began increasing in all states in 2021 and have continued to increase over the past year. In February 2023, the median weekly rent amount was highest in the ACT at $560 per week and lowest in South Australia at $380 per week (Figure 3).
Canberra remains Australia's most expensive capital city in which to rent a house at a median cost of $690 per week, ahead of Sydney on $660, according to the Domain Rent Report March 2023 Quarter released today.
Without new properties coming to market, the situation is likely to get worse, says Steve Mann, CEO, UDIA NSW. “Rising rents are purely representative of demand outstripping supply. We simply do not have enough rental properties to satisfy people's needs,” Mann says.
While there's no consensus on what rents will do exactly in 2023 — go up a little, go down a little, or stay flat, according to three forecasts — what's clear is they are expected to return to more normal growth patterns, instead of the unsustainable, record rates seen in 2021 and 2022.
Analysts say open borders and increased migration have driven demand for real estate – and increases in rental prices. What matters for rents, as for any price, is the demand for and the supply of the product being priced. More demand (more renters wanting properties) and the price climbs.
Much of the pressure stems from a skyrocketing rental market that has seen “the worst inflation of any place in Australia”. Median rents rose 80% in the central Queensland city of Gladstone, 51% in Noosa and 33% on the Gold Coast over the past five years.
The worst performing states are Tasmania, with incomes 26% below the national income and wealth average, as well as South Australia which is 19% below the average household income and 20% below the national net wealth.
Queensland has many suburbs with affordable costs of living and cheap accommodations. You can consider Bundaberg, French Ville, South Mackay, Nerang, Kirwan, etc.
Inversely, the three most expensive states to move to right now have average home prices that are at least $275,000 higher than the national average. The most expensive state to move to in 2023 is Hawai'i, with an average home price of $636,400. Following up is Washington DC, with an average house price of $618,100.
The most expensive rental market in the US remains to be New York. The average monthly rent for a one-bedroom is roughly $3,260. This is about a $500 decrease from 2021, however as demand continues to increase prices are likely to follow.
Many renters like to rely on the 30% rule, which means a maximum of 30% of your income goes to rent. An ideal amount is about 20%, but 25% is also a good target to aim for. However, this isn't always feasible on a low income, as average rents in your chosen area may well be above 30% of what you're earning.
Raised rental prices aren't the only problem either. Rental property vacancy rates are also dropping across the country, meaning there's not enough supply to keep up with the demand. According to Domain, the national vacancy rate is at an all-time low at just 0.8 per cent.
According to Expatistan, this means Australia is one of the most expensive places to live (ranked 13 out of 74). Generally, a higher cost of living means that basic expenses have become – well, expensive.
Australia rental crisis is worsening amid skyrocketing prices, low vacancy rates.
au's analysis showed that, even if prices rose at a similar rate to inflation over the next five years, the median house price would still be near $1.5m in 2027.
Overall, Canberra remains the most expensive capital city to rent a house in, with median weekly rents sitting at $690. Sydney takes second place at $650 per week, followed by Darwin ($620 per week), Hobart ($550 per week), and Brisbane ($550 per week).
House prices in Australia are extremely high compared to income, relative to other countries. The market is propped up by rules that provide tax deductions for property investment, and by repeated state government bonuses for first home buyers. Furthermore, the supply of new homes is hard to generate.
Since then, median rent for houses in Sydney has impressively bounced back in 2020 despite the COVID-19 pandemic. Sydney median weekly house rent 2020: $540. Sydney median weekly house rent 2019: $525. Sydney median weekly house rent 2018: $600.
There is no end in sight to rental pressures across Sydney with available rentals falling almost 20 per cent over the past year.