Tenants are doing it tough right now, with vacancy rates in most Australian capital cities’ hitting new record lows, and increasing competition to secure accommodation forcing prices in a steep upward trajectory.
Many experts are warning of a looming rental crisis, with Perth fast becoming the hardest city in which to find a decent rental property without paying through the teeth.
In a ninemsn report Matthew Quinn, managing director of multi-million dollar developer Stockland, said even though house prices in Perth have come off the boil in a big way recently, the same couldn’t be said for the rental market; where the vacancy rate within Stockland owned projects has fallen to less than one per cent.
“Rents are going through the roof, just ask anybody who’s tried to rent a house in Perth in the last six months – it is a nightmare,” Quinn said.
And while Perth might be one of the toughest cities to crack for would-be tenants, it’s certainly not the only Australian capital where renters are struggling to literally get their foot in the door.
Quinn said the combined impact of the ongoing housing shortage and affordability issues pushing more young Australians into an already tight rental market is pointing toward another rental crisis in the near future.
He paints a picture not unlike that we saw last decade, of house hunters queuing down the street at rental inspections and desperate tenants offering to pay more just to get a roof over their heads.
“It’s already happening and it’s going to happen in greater and greater numbers because housing is undersupplied, it’s unaffordable and rents are now going up.”
Not so great for tenants, but not so bad for investors who can look forward to their portfolios returning better cashflow as interest rates remain relatively low and rental yields continue to climb.
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