The PropTrack report has warned that the tight rental market in Australia’s major cities has reached a 20-year low, and is projected to further deteriorate until 2023 due to the disparity between the high demand for properties and the low availability of them.
This has become a major challenge for Australians looking for a place to live.
The report shows that the availability of rental properties in Australia’s major cities has dropped to a 20-year low, with Sydney recording the lowest availability of rental properties since records began in 2000.
The report also found that rental availability in Melbourne and Adelaide has fallen to its lowest in 17 years, and Brisbane and Perth have experienced their lowest rental availability in 15 years.
Despite the current rental market being at a 20-year low, the report also warned that the situation is set to worsen through 2023. This is due to the fact that demand for rental properties is expected to remain strong, while the supply of rental properties is set to remain low.
The report also predicts that the lack of rental availability will lead to an increase in rental prices, which could make it even harder for Australians to find affordable rental properties.
The number of available rental properties nationwide has reached its lowest level since 2003, especially in the capital cities where the figure has dropped by 26.3 percent.
As rental stock decreases rapidly in the two largest rental markets in Australia, Sydney and Melbourne, the demand for rental properties is on the rise. Furthermore, most of the incoming overseas migration over the upcoming years is anticipated to be concentrated in these two cities, only further intensifying the demand for rental accommodation.
Sydney experienced a 7.7% growth in rental prices, while Melbourne saw a 9.8% increase, Brisbane had an 11.4% increase, and Adelaide experienced an 11.8% rise.