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What’s happening in the capital cities home rental market? - featured image
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What’s happening in the capital cities home rental market?

No relief is in sight for tenants with tight rental markets continuing to produce high and generally rising rents in most capital cities for both houses and units.

The national weekly median asking house rent increased by 2.6% over June to $551 for an annual increase of 15.6%.

The national vacancy rate for houses however eased slightly over the month but remained at a low 1.3%.

Median Asking Rents June 2022

All capitals continue to report significant increases in monthly asking house rents over the year ending June 2022, with Brisbane the highest up 27.9% followed by Sydney up by 26.4% and Perth now up 15.6%.

Most vacancy rates for houses continue to hover around or below 1.0% with Melbourne and Sydney the highest at 1.8% and 1.6% respectively.

Canberra continues to report the highest capital city weekly house rents again steady at $700 over the month followed by Sydney and Darwin each continuing to rise sharply to $670 and $650 respectively.

Melbourne remains the most affordable capital for weekly house rents steady over June at $480.

Median Asking Rents Units 30 June

Capital city unit rents also continue to maintain the strong gains recorded over the past year with monthly increases reported by Hobart up 6.0%, Brisbane up 2.2% and Adelaide higher by 1.3%.

Sydney unit rents have been the top performers over the past year higher by 22.2% followed by Hobart up 17.7% and Melbourne up 13.5%.

Capital city vacancy rates for units over June generally remained low at just above 1.0%, and although Melbourne and Sydney's results are above 2.0%, rates continue to fall and are significantly below the levels of a year ago.

Similar to houses, Canberra again reported the highest weekly asking rents for units over June but higher at $560, with Adelaide the most affordable but also increase over the month to $385.

The current strong demand for rental homes will continue to be supported through 2022 by the reopening of borders with the return of high levels of migration and surging international students.

Higher mortgage interest rates for investors are also likely to be passed on to tenants providing more upward pressure on already high and generally rising rents.

About Dr Andrew Wilson, Chief Economist of www.MyHousingMarket.com.au is widely regarded as Australia’s leading property economist.
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