This week, CoreLogic released data showing that Australia’s rental market is now a national disaster zone that will only get worse as the Albanese Government ramps-up immigration.
Quarterly rental growth was wall-to-wall strong, soaring by 3.0% across the combined capital cities and by 2.7% across the combined regions:
Australian rental growth accelerates.
Annual rental growth has also accelerated to 9.5%, with near universally strong growth recorded across the nation:
Near double-digit rental price growth.
After falling over the early part of the pandemic, unit rents are now growing faster than house rents:
Unit rents now growing faster than houses.
The surge in rents comes on the back of a plunge in the vacancy rate to less than half the decade average across the combined capitals, and less than one-third the decade average across the combined regions:
Australia’s rental vacancy rate plunged over the pandemic.
Commenting on the results, CoreLogic’s Research Analyst Kaytlin Ezzy noted that “the current surge in rental demand has occurred largely in the absence of overseas migration and has instead been driven by factors including low supply and a decrease in the average household size which has amplified domestic rental demand over the COVID period to date”.
However, CoreLogic Research Director Tim Lawless warned that “the reopening of international borders is likely now adding further upwards pressure on rental demand”.
The Albanese Government this week flagged that it will soon throw open the immigration floodgates. Where will the thousands of new migrants live when there is already a chronic shortage of homes for the existing resident population?
