Although the local rental pain hasn’t worsened, the escalating cost of living is posing new obstacles for individuals and families striving to secure affordable rentals in our communities.
Nationally, Australia grapples with a chronic shortage of rental properties, a crisis that has only slightly eased in December, leaving the number of available homes at near-record lows.
A perfect storm of factors, including a population surge of almost 650,000 in the past 12 months, surging property prices, and a sluggish pace in new constructions, has intensified the nation’s housing shortage.
Locally, finding an affordable rental has become an increasingly challenging endeavour, with properties listed for $400 or less per week decreasing by nearly half compared to the previous year.
The national median weekly rent has surged by 15%, reaching $550, resulting in fewer new properties listed below $400.
In October, only 11% of total listings were within the affordable bracket nationally, though this figure does not fully capture the affordability crisis faced by cities.
Corowa and Rutherglen, including Wahgunyah, currently have around 13 properties listed online for both towns combined. Corowa’s median rent for a house per week is $390. However, rental demand for houses in the area has decreased by 59% over the last 12 months.
For units, the median rent is $300 per week, marking a 25% increase in the last year, with rental demand for units rising by 11%.
Border Property Exchange Property Manager/Sales Agent, Matt Humphreys, providing local insights for the Free Press, noted that the vacancy rate for Corowa is approximately 0.26%, significantly lower than the NSW rate of 1.08%. Mr Humphreys said that the issue lies not in the scarcity of rentals but in the shortage of supply at certain price points.
Local prices have risen around five percent, with the average rental for a 3–4-bedroom home reaching $420-$450, while two or three-bedroom properties hover around $350.
“Families want four-bedroom homes at a reasonable price, but investors are jacking up prices which makes it difficult,” he said.
“Low rental vacancy rates indicate of tight rental markets, with tenants competing for limited stock.
“Insurance is also up, especially after the 2022 local flooding. When we look at Rutherglen, prices go up again.
“I would say the rental situation hasn’t worsened, but because of the price point, it hasn’t eased either.”
The Suburbtrends Rental Pain Index (RPI) provides a perspective on the local rental market, scoring Corowa at 78, ‘Corowa surrounds’ at 68, and Rutherglen at 76, indicating the significant challenges faced by renters in our communities.
Kent Lardner, founder of Suburbtrends, highlights a nationwide rental crisis, with over 58% of suburb groups in states like Queensland and South Australia experiencing extreme rental hardship.
“As we begin 2024, the Rental Pain Index serves as a crucial indicator of the hardships faced by renters across Australia,” Lardner said.
“The data calls for urgent, multifaceted policy solutions to address the soaring rental costs and limited housing availability. It’s time to turn these insights into action.”
MCG Quantity Surveyors’ latest data reveals a nationwide shortage in rental listings, significantly impacting renters during the holiday season.
Managing Director of MCG Quantity Surveyors Mike Mortlock notes the crunch in available rentals in areas like Greater Sydney and regional NSW, putting immense pressure on renters.
“This scarcity, though a hardship for renters, presents a unique opportunity for investors, especially with the potential shift in interest rates in 2024,” he said.
This pattern extends to regional VIC, highlighting a nationwide issue.
“Our analysis reveals that while renters in areas such as regional Victoria… are facing tough times.
“Investors could play a key role in easing these pressures. By entering these markets, investors can help increase the availability of rental properties, creating a win-win situation for both the rental community and themselves.”
Mr Humphreys shared tips for locals looking to secure a rental.
“The biggest thing for us is making sure rental applications are filled out correctly. Making sure the current job is correct, phone numbers are correct, having references etc.”
