The cost of renting in Australia’s capital cities increased by 11.7% overall in the year up to April 2023.
CoreLogic, the property analyst firm that compiled the data, said it was the highest rise they had ever recorded.
The return of overseas migrants and international students contributed to the spike in demand for renting.
Sydney and Perth had the largest annual increase.
How much capital city rents increased in the past 12 months:
|Capital city||Median weekly rent||Year-on-year % change (to April 2023)|
Why are rent prices rising?
A gradual rise in interest rates has directly contributed to surging rent prices across the country.
Many landlords have passed on the extra amount charged through interest rates to their tenants.
The return of migrants and international students to Australia has also increased housing demand.
The areas in Australia with the largest rent increases:
|City||Area||Median rent||% change|
|Sydney||Eastern Suburbs – South||$946||22.5|
|Sydney||Kogarah – Rockdale||$706||22.1|
What about the regions?
Rent prices went up by 6% across all regional areas, with the largest increases in regional WA (8.6%) and Queensland (8.1%).
Rent for houses in regional WA, SA and Queensland all rose by 7% or more, while rent for units surged in regional WA (15%) and Queensland (11.1%).