Housing costs have soared faster than incomes, but could there be any relief on the horizon?
The days of 20 per cent plus rent hikes could be over, experts say, but the rental crisis is set to persist for years as tenants compete for properties.
Although it remains a landlord’s market, SQM Research managing director Louis Christopher noted a shift. “We are confident the days of 10 to 20 per cent annual rental increases in most of the cities have come to an end or about to come to an end.“We believe a lot of the bad news surrounding the rental market has now been priced-in to rents already.”Tenants have responded to soaring rents by grouping together more, or moving out of cities to regional areas, or where possible, buying their first homes, he said.
He also noted a tick-up in vacancy rates in the CBDs of Sydney, Melbourne, Canberra and Brisbane, saying student demand for rental accommodation may have peaked in this cycle as the rate of migration is expected to slow. “They probably won’t sustain the extremely fast increases that we’ve seen over the past year or two, but they will be going up substantially faster than other prices and substantially faster than incomes, so the outlook for renters is a very grim one.He backed the NSW government’s push to enable more new housing, especially around train lines and called on other governments to follow suit.
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