Latest rental figures have ‘very big good news’ for renters, just as new analysis finds 145 suburbs where landlords are now unable to force rents any higher.
PropTrack senior economist Paul Ryan confirmed “rents were flat in August, they’ve been flat for two months in a row at a national level” now.
Every major capital except Melbourne and Darwin were now seeing rental prices flatlining with rents not growing for two months straight – a massive change considering the relentless growth of the past few years, he said.
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Senior Economist at PropTrack Paul Ryan said rents have flatlined across most major capitals now.
“The fact that rents haven’t been growing for two months straight is very unusual compared to the past couple of years. These are all very good signs for renters.”
“I definitely think we’ve got all the signs that you’d want to be seeing for an easing rental market and the next 12 months being better for renters than the past 12 months.”
“And I think the very big good news here is that rent growth now is at a pace where it is below income growth. So if we see these conditions continuing, we will see renters getting some respite.”
This as the SuburbTrends September 2024 Rental Pain Index (RPI) found over 1300 out of 2000 suburbs sampled across the country were now in “severe rental stress” meaning landlords there are now unable to force prices higher given the state of the market.
Around 68 per cent of the country had now reached that level, according to SuburbTrends analysis, naming 145 suburbs where the rental affordability situation was now so bad that landlords would be unable to push prices any higher without risking their properties sitting vacant for longer than necessary, or being forced into accepting larger groups in shared rental situations.
SCROLL DOWN FOR FULL LISTS BY STATE
Almost 68 per cent of the country was now seeing rent at extreme levels.
Mr Ryan said vacancy rates were slightly higher in July than a year ago – meaning more homes are available to rent – with August figures soon to be released.
“All these things point to an easing. All our other indicators like number of enquiries per rental have continued to fall which signals that demand is coming off.”
Income growth was circa 4 per cent, while over the past three months at a national level rents have risen 3 per cent – mostly thanks to a big jump in the first month of the quarter, followed by two flat months.
“Over the past year rents have grown 7.8pc which is higher than most people’s income growth but that is obviously very heavily front loaded at the start of the year. I think we’re getting back towards balance for renters in the country.”
WHERE RENTS HAVE PEAKED:
(Any place over 75 shows worst levels of affordability).
NEW SOUTH WALES
1 Tweed Heads South 82
2 Greenacre – North 77
3 Bass Hill – Georges Hall 75
4 Windang – Primbee 97
5 Tuncurry 100
6 Nambucca Heads 78
7 Tweed Heads 85
8 Riverwood 100
9 Pottsville 83
10 Brunswick Heads – Ocean Shores 79
11 Forster 80
12 Eastlakes 77
13 Greenacre – South 88
14 Ashcroft – Busby – Miller 78
15 Tea Gardens – Hawks Nest 90
16 Eden 100
17 Condell Park 11 46 1.93 81
18 Guildford – South Granville 83
19 Maroubra – South 85
20 Malabar – La Perouse 91
21 Anna Bay 98
22 Murwillumbah 93
23 Berry – Kangaroo Valley 96
24 Lurnea – Cartwright 96
25 Macksville – Scotts Head 75
VICTORIA
1 Mornington – West 100
2 Rosebud – McCrae 83
3 Doncaster 82
4 Mornington – East 86
5 Otway 75
6 Mooroopna 2 92
7 Castlemaine 99
8 Campbellfield – Coolaroo 83
9 Portarlington 4 83
10 Dandenong – South 93
11 Maryborough (Vic.) 76
12 Clayton (North) – Notting Hill 86
13 Wonthaggi – Inverloch 96
14 Balwyn 79
15 Phillip Island 77
16 Bundoora – West 83
17 Thomastown 88
18 Euroa 85
19 Brighton (Vic.) 90
20 Pakenham – South East 15 35 1.23 88
21 Hastings – Somers 100
22 Dandenong – North 94
23 Doncaster East – South 82
24 Springvale 95
25 Lalor – East 92
QUEENSLAND
1 Clear Island Waters 86
2 Coombabah 83
3 Bribie Island 96
4 Tewantin 97
5 Pialba – Eli Waters 94
6 Burleigh Waters 100
7 Cooloola 87
8 Currumbin Waters 6 52 0.8 100
9 Labrador 91
10 Burrum – Fraser 82
11 Elanora 86
12 Southern Moreton Bay Islands 79
13 Biggera Waters 79
14 Caloundra – Kings Beach 79
15 Southport – South 93
16 Maryborough Surrounds – South 80
17 Magnetic Island 95
18 Point Vernon 82
19 Palm Beach 82
20 Carrara 83
21 Torquay – Scarness – Kawungan 98
22 Golden Beach – Pelican Waters 79
23 Robina – West 80
24 Southport – North 90
25 Redcliffe 100
SOUTH AUSTRALIA
1 Elizabeth 91
2 Victor Harbor 98
3 Christie Downs 100
4 Goolwa – Port Elliot 92
5 Smithfield – Elizabeth North 89
6 Hackham West – Huntfield Heights 98
7 Mannum 95
8 Mitchell Park 97
9 Morphett Vale – West 84
10 Morphett Vale – East 94
11 Port Adelaide 92
12 Salisbury 96
13 Hope Valley – Modbury 98
14 Paradise – Newton 91
15 Pooraka – Cavan 83
16 Christies Beach 100
17 Yankalilla 99
18 The Parks 89
19 Adelaide 88
20 Seaton – Grange 97
21 Warradale 93
22 Aldinga 100
23 Ingle Farm 100
24 Davoren Park 5 86
25 Reynella 87
WESTERN AUSTRALIA
1 Busselton – West 94
2 Augusta 75
3 College Grove – Carey Park 82
4 Busselton – East 97
5 Rockingham 86
6 Exmouth 90
7 Gosnells 91
8 Halls Head – Erskine 88
9 Girrawheen 99
10 Hamilton Hill 81
11 Denmark 96
12 Balga – Mirrabooka 93
13 Withers – Usher 78
14 Bentley – Wilson – St James 93
15 Camillo – Champion Lakes 91
16 Willagee 98
17 Maddington – Orange Grove – Martin 82
18 Dianella – South 97
19 Spearwood 88
20 Broome 86
21 East Bunbury – Glen Iris 79
22 Noranda 95
23 Balcatta – Hamersley 97
24 Pinjarra 100
25 Nollamara – Westminster 91
TASMANIA
1 Bridgewater – Gagebrook 81
2 East Devonport 97
3 Mornington – Warrane 91
4 Ulverstone 80
5 West Ulverstone 100
6 Newnham – Mayfield 78
7 Wynyard 84
8 Invermay 83
9 George Town 77
10 Devonport 96
AUSTRALIAN CAPITAL TERRITORY
1 Ainslie 76
2 Holt 85
3 Holder 91
4 Bonython 79
5 Giralang 78
NORTHERN TERRITORY
1 Coconut Grove 98
2 Gray 83
3 Mount Johns 79
4 Larapinta 91
5 Parap 83
(Source: SuburbTrends)
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