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Independent economist Gerrard Minack recently posted the following chart illustrating how Australia’s rental inflation has tracked population growth:
CBA’s latest housing market update notes that “there is a particularly strong relationship between increases in higher-density housing supply and rent growth”:
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“This likely reflects the fact that apartments make up a disproportionate share of the rental market: just over60% of apartments are renter-occupied, compared with around 20% of detached houses”.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.