The latest interest rate hike won't bode well for Sydney renters in an already tight and unaffordable market, as new analysis highlights the extremely low rental vacancy rate.
National housing campaign Everybody's Home has analysed the latest SQM Research Weekly Rents Index, finding asking rents in the Sydney basin have increased by $80 to $275 per week over the past year.
Western Sydney tenants are paying $118 extra a week in rent compared to a year ago.
Across Sydney, rents have risen by up to $177 a week over the last three months alone.
Residential vacancy rates slipped to 1.3% in Sydney overall, with south-western Sydney and Sutherland Shire sitting at a tight 0.8%.
Community |
Vacancy rate Oct 22 |
Asking rent Nov 22 |
Rolling quarter change in weekly rent |
Annual change in weekly rent |
Lower North Shore |
1.7% |
$1,037.17 |
$177 or 20.6% |
$275 or 36% |
Eastern Suburbs |
1.1% |
$959.75 |
$123 or 14.7% |
$263 or 37.8% |
Sydney CBD |
3.4% |
$875.51 |
$15 or 1.7% |
$218 or 33.2% |
Sutherland Shire |
0.8% |
$764.60 |
$93 or 13.9% |
$193 or 33.7% |
Upper North Shore |
2.1% |
$780.79 |
$62 or 8.7% |
$180 or 30% |
Northern Beaches |
1.3% |
$1,024.74 |
$91 or 9.7% |
$155 or 17.8% |
St George |
1.3% |
$618.63 |
$46 or 8.1% |
$150 or 32.1% |
Inner West |
1.3% |
$656.35 |
$50 or 8.3% |
$139 or 26.8% |
Western Sydney |
1.3% |
$555.92 |
$35 or 6.8% |
$118 or 27% |
Parramatta |
1.1% |
$549.91 |
$28 or 5.3% |
$115 or 26.5% |
Canterbury-Bankstown |
0.8% |
$546.89 |
$48 or 9.7% |
$112 or 25.8% |
The Hills |
2% |
$715.08 |
$8 or 1.2% |
$96 or 15.5% |
South Western Sydney |
0.8% |
$558.42 |
$14 or 2.6% |
$91 or 19.4% |
Liverpool |
1.3% |
$496.87 |
$18 or 3.8% |
$80 or 19.3% |
*week ending 4 December 2022
Everybody's Home national spokesperson Maiy Azize said renters were absorbing the costs of inflation.
"Rents have been on the rise well before interest rates climbed, but every rate increase adds more pressure to an overheated and unaffordable housing market.
"Another interest rate hike means renters will be worse off if their landlord passes on an increase. This will deepen housing stress for thousands of people.
"To deal with the rental crisis, the Federal Government must invest in social housing. We're calling on them to build 25,000 homes a year to end the shortfall, help thousands of people at risk of homelessness, and pull even more out of rental stress. At the same time, we'll be freeing up lower cost rentals for people who need them.
"Building social housing would be the most powerful way to tackle the rental crisis and give Australians the secure, stable homes they need and deserve.
"If we don't act, people will be pushed deeper into housing stress and even homelessness.
"We're calling on the government to take action and make sure everyone has a place to call home."
