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Key Points
- Rental prices have fallen in the last 12months, CoreLogic data reveals their locations.
- The savings vary across houses and units, with some suburbs showing an 11 per cent annual decrease.
- Meanwhile new data shows rental affordability is at its worst level since records began.
Rental prices continue to rise at record levels, but some Australians are feeling a bit of relief as prices drop.
New data shows that there are parts of the country where rental prices have fallen as much as 11 per cent in the last 12 months.
Despite rental prices going down in some suburbs, nationwide the amount of places affordable to Australians is the worst its been since records began.
So what areas have seen a shift?
Which suburbs have rental prices dropped?
The best place to rent is Hobart or ACT, where 50 to 80 per cent of suburbs have seen rental prices drop for dwellings, which includes both houses and units.
CoreLogic data shows nationally the annual savings vary, with rental decreases ranging anywhere between 3 per cent to 12 per cent depending on the state and house type.
For houses, the biggest savings are in regional Tasmania, with both Honville and Cynet residents paying roughly 8 per cent less than a year ago.
Renters in Flinders on Melbourne’s Mornington Peninsula are paying 6.8 per cent or $72 less for a home.
In Hobart, you can save between 5 or 6 per cent on rent in Sandy Bay, Brighton, Rosetta and Montrose while Farrer and Macquare are leading price drops in Canberra.
For units, NSW renters are paying $80 or 11.5 per cent less in rent with Surf Beach, Bogoangar and Batehaven also dropping prices significantly.
Lenah Valley, New Town and Sandy Bay appear to have the weakest growth in rental unit prices in Greater Hobart, respectively slashed by 5.6 per cent, 5.3 per cent and 4.2 per cent annually.
In the ACT, Casey, Taylor and Holt have seen 2 to 3 per cent decreases in units.
Rental affordability at worst level since records began
Nationally, rental affordability is at its worst level since records began, according to real estate data firm PropTrack’s Rental Affordability report.
Their index measures the share of advertised rentals that households across different incomes could afford between July and December 2023.
Households on the median income of $110,000 per year can only afford 39 per cent of available properties to rent, the latest PropTrack Rental Affordability report found.
It’s the lowest figure for affordable rentals in 17 years, with those living in NSW, Tasmania and Queensland having the worst levels of any jurisdiction.
The figures were based on a typical household that would spend one-quarter of their income on housing.
For a household earning $49,000 a year, the report found there were practically no affordable properties available to rent.
PropTrack senior economist Angus Moore said the figures were driven by a 38 per cent surge in rental prices since the pandemic.
“Over the six months to December 2023, households across the income distribution system could afford to rent the smallest share of advertised rentals since at least 2008,” he said.
“The deterioration in affordability has been driven by the significant increase in rents that we’ve seen since the pandemic, which wages have not kept up with.”
Victoria has the most stable renting environment but tenants have still seen an 18.3 per cent increase in advertised rents in the past 12 to 18 months.
Moore said boosting “availability and supply of rentals” is critical in addressing the surge in rental prices long-term.
– with additional reporting from AAP
