For almost two decades, household formation rates for 25 to 34-year-olds have been tanking. The decline kicked off as the impact of the new ‘Big Australia’ migration intake began dramatically impacting the rental market in the final years of the Howard government.
As the ABS chart below illustrates, between mid-2005 and mid-2008, asking rents in the nation’s capital cities rose by approximately 30%, surging at a rate significantly higher than that seen in the decade prior.
While specific to Greater Sydney, the chart below from a 2016 report from the New South Wales Tenants Union shows how significantly rental price growth accelerated during that time.
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