Tenants have been forced to pay hundreds more in weekly rent amid a spectacular rebound in the Sydney rental market.
And agents warned there could be more rises on the cards as the return of tourists later this month, along with international students, puts additional pressure on the supply of rental housing.
Rents have already exploded in much of the city after being depressed during much of the early Covid pandemic.
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A typical Sydney rental now costs about $605 per week, a nearly 10 per cent increase from early 2021, according to CoreLogic.
Rises were significantly higher in the most sought after suburbs, with Vaucluse tenants paying an average of about $1000 more in weekly rent than they were early last year.
Renter Emily Thompson, 22, said she is concerned rising rents will make it even harder to find a decent place to live. Picture: Tim Hunter.
Median weekly rents were $290-$350 higher in other coastal suburbs such as Bronte, Collaroy, Mosman and Newport. There were also large rises on the upper north shore.
CoreLogic reported the rises were driven by a mix of fewer landlords and more would-be homebuyers turning to the rental market after being priced out of a house.
Investors selling off properties to owner occupiers throughout the past year meant much of the city’s supply of rental accommodation dwindled, leading to a shortage in some areas.
The return of international tourists later this month could further drain the supply of rentals, CoreLogic said.
Weekly rent on this Newport home increased by $250 in a year.
It is believed many landlords, lured by the promise of higher returns, will switch their accommodation to short-term stays on sites such as Airbnb.
Rising student numbers from overseas could also soak up much of the supply of homes.
Ray White Surry Hills director of property management Kris Boghossian said most open for inspections were attracting about 20 groups. This was lower than before the pandemic, but the home seekers had more “intent”.
“In the past, there would be people coming just for something to do. Now everyone is a serious renter,” he said.
Rent on this Vaucluse house is up $550 per week compared to last year.
“There is not much to rent. Investors were selling their properties to owner occupiers so those properties never came back on the market as rentals and that’s put a lot of pressure on (tenants).”
Ben Pretty, founder of online rent review platform Rent Rabbit, said recent rises were emboldening landlords and many were demanding higher rates for tenants seeking to renew their leases.
“It’s opportunistic,” Mr Pretty said, adding that landlords were often feeling the pinch from the high prices they paid to get into the market.
Source: CoreLogic
“There are a lot of landlords who are overleveraged and they can’t afford to maintain their properties, so they have to demand more rent,” he said.
Renter Emily Thompson, 22, said she worried about the prospect of rent rises since they were already expensive.
“It’s concerning,” she said. “Last year when I moved into a new place, it was at the peak of everyone staying overseas. We got a place we might not have got otherwise.
“It’s still not easy and being a renter is frustrating. If rents go up more, it’s a bit rough.”
