A recent analysis of the Australian rental property landscape reveals that Queensland (QLD), South Australia (SA), and New South Wales (NSW) are currently experiencing the greatest rental pressure, according to data released by Suburbtrends.
Kent Lardner, Founder of Suburbtrends, states, "The Rental Pain Index, a metric that measures the financial strain of renting, is highest in QLD, followed by SA and NSW. This suggests that tenants in these states are feeling the greatest 'rent pain' at present."
The analysis focuses on the top 25 results per state, comparing factors such as the percentage of advertised rentals, vacancy rates, average 12-month rental increase, and average rent as a percentage of income. QLD not only leads the pack in rental pain but also boasts the largest average 12-month rental increase at a staggering 16.33%.
Kent explains, "The significant increase in rental prices over the past year in QLD is a clear contributor to the heightened rental pain felt by residents. Similar trends are observed in SA and WA, where rental prices have risen by approximately 15.95% and 15.37%, respectively."
Interestingly, the Australian Capital Territory (ACT) and Tasmania (TAS) were found to have the highest average percentage of advertised rentals, suggesting a high turnover of rental properties. The ACT also has the highest vacancy rate, with over 2.22% of properties sitting empty for 21-days or more.
Despite these findings, Kent stresses the importance of broader context: "While these numbers give us a snapshot of the current state of affairs, it's crucial to remember that the rental market is complex and ever-changing. Factors such as economic conditions, population growth, and housing policies all play a role."
Suburbtrends is committed to providing the most accurate and up-to-date insights into the Australian rental market to help both renters and property investors make informed decisions.
