Revealed: The Aussie suburbs where rent prices are skyrocketing

Australia’s rental market continues to tighten, with several suburbs recording double-digit rent price growth in just three months, further exacerbating housing and cost-of-living pressures.

Latest PropTrack rental figures reveal a recalibration in the market, but affordability challenges persist as vacancy rates remain historically low.

Units in Lake Illawarra, NSW, topped the list with weekly rents soaring by 15.1 per cent between May and August, reaching $420 per week.

It represents a weekly rent increase of $55 a week or $220 a month.

Meanwhile, rentals in Iluka and Millars Well, both in Western Australia, jumped by 14.3 per cent over the same period, up to $1200 a week.

In Sydney’s affluent Woollahra, rents climbed 12.1 per cent, from $1650 to $1850 per week.

Other suburbs experiencing double-digit growth include Gloucester and Kahibah in NSW, Alexandra Headland and Clifton Beach in Queensland, Oaklands Park in South Australia, Berriedale in Tasmania, and Elwood in Victoria.

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REA Group senior economist Eleanor Creagh noted that while rental price growth has eased, rents remain elevated after years of record increases.

“There’s a recalibration in the rental market. Vacancies still remain low by historical standards but rental price growth has eased significantly, although rents are elevated after years of record growth,” she said.

AUS SUBURBS WITH DOUBLE DIGIT RENT PRICE GROWTH

Source: PropTrack

Ms Creagh highlighted that Sydney, Brisbane, and Melbourne are seeing a cooling in momentum, with tenants trading space for location and price.

However, she warned that Perth and Adelaide remain Australia’s toughest rental markets, with vacancy rates below 1 per cent – conditions she described as “emergency levels.”

“Without a bigger supply response, it’s not likely that we’ll see rents moving backwards,” she added, pointing to the ongoing supply-demand imbalance.

While the pace of rental growth has slowed in some cities, affordability remains a critical issue.

PropTrack senior economist Eleanor Creagh.

Ms Creagh observed that household budgets are stretched, and tenants are making rational adjustments to cope with rising rents.

The question of whether rents will ever decrease remains uncertain, with supply shortages continuing to drive upward pressure.

Broader implications

The double-digit growth in rents is symptomatic of a broader housing crisis.

Persistently low vacancy rates, coupled with strong population growth and limited new housing supply, have created a perfect storm.

Only this week, a new report card released by the National Association of Renters’ Organisations and National Shelter shows that, two years after National Cabinet promised a “Better Deal for Renters,” most governments have failed to deliver meaningful reforms. Millions of renters are still exposed to unfair rent hikes, arbitrary evictions and unsafe homes. For the one-third of Australians who rent, basic rights and housing stability are still dictated by postcode.

“The rental experience in Australia shouldn’t differ depending on what side of the Murray or Tweed you are renting on,” National Shelter spokesman John Engeler said.

“The experience of renting should be consistent across all states and territories, especially as Australia’s renting population increases.

“We call on the Federal Government to provide leadership to harmonise rental regulations across Australia to ensure that renters have access to similar levels of security and stability as homeowners.”

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