Regional renters are being asked to cough up more money as the market struggles to keep up with surging demand, according to a new report.<\/p>\n
Regional rents, nationally, increased by 2.5 per cent in December to sit at a median price of $465 per week.<\/p>\n
That rate of growth was far higher than the 1.6 per cent experienced across Australia’s capital city markets, where the median rent now sits at $508 per week.<\/p>\n
Regional house rents were up 12 per cent from their December 2021 figure, while unit rents were up 12.8 per cent.<\/p>\n
Over a 10-year period regional house rents have increased 33.2 per cent compared to 24.9 per cent for capital cities.<\/p>\n
Regional unit rents have increased by 41.4 per cent in the past decade compared to 14.4 per cent in the capitals.<\/p>\n
CoreLogic research director Tim Lawless said that regional rental markets had been unable to keep up with the level of demand from sea and tree changers, particularly in NSW and Victoria.<\/p>\n
In particular, demand for detached housing during the pandemic had been “unabated”.<\/p>\n
“While demand has risen we generally haven’t seen much of a supply response. Australia’s rental market is mostly reliant on private sector investors to provide rental housing,” Mr Lawless said.<\/p>\n
The lower rate of investor activity in the regions meant the market was less able to cater to the increase in demand, he said.<\/p>\n
“Arguably the regions have less elasticity in rental markets, meaning, when demand rises, supply is less responsive than capital cities where investors are generally more active.”<\/p>\n
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